New grain hopper railcars arrive at Port of Buenos Aires under Belgrano Cargas-UAA deal

A vessel carrying new bulk hopper railcars docked at the Port of Buenos Aires on March 15 as part of a commercial agreement between state-run freight operator Belgrano Cargas y Logística (BCyL/TAC) and agroindustrial cooperative Unión Agrícola de Avellaneda (UAA), according to an Argentine government statement.

Under the public-private collaboration scheme, UAA provided $5.715 million in freight prepayments, enabling BCyL/TAC to purchase the new batch of narrow-gauge railcars from China’s CMEC, the statement said.

The 45 units, each with a 55-tonne carrying capacity, will be allocated to the Belgrano line to support expected demand from the agroindustrial sector. The Buenos Aires Grain Exchange has forecast grain production of 147.9 million tonnes in the current harvest, up 13% from the previous season. Based on grain price assumptions, export revenue is expected to rise 7.3% to about $36 billion, boosting hard-currency inflows, it said.

In a similar outlook, the Rosario Board of Trade has projected a record 160 million tonnes of grain output, an increase of 21.2 million tonnes from 138.8 million tonnes in the last cycle.

UAA operates rail-connected grain storage facilities in the provinces of Salta, Chaco, Santiago del Estero and Santa Fe, and said the new equipment will help optimize rail shipments bound for ports.

Belgrano Cargas y Logística is undergoing a privatization process, and the agreements are being pursued in that context, UAA said in a statement. The cooperative said the initiative is part of a broader plan to improve the logistics efficiency of rail freight from branches located in Santa Fe, Salta, Chaco and Santiago del Estero.

The agreement also guarantees operational and contractual continuity with UAA even in the event of changes in ownership or management, the cooperative said.

Source: Government of Argentina

Sharing is caring!