Grupo Mexico, U.S. partner eye Argentina grain freight network in Milei privatization push

Mexico’s Grupo Mexico Transportes has struck ​a deal with U.S. rail technology company Wabtec to ‌jointly bid for Argentina’s state-run freight operator Belgrano Cargas y Logistica, a person at GMXT told Reuters on June 11.

The proposed privatization of BCYL is part of President ⁠Javier Milei’s drive to transfer state-owned companies into private hands. Argentina ​will publish the tender documents for the privatization of BCYL, ​which operates the country’s three largest freight train lines, in the coming days. The company did not respond to a request for comment.

Grupo ​Mexico Transportes USA is a unit of Grupo Mexico, a ​Mexico-based conglomerate. Several other companies have also expressed interest in bidding, according ‌to ⁠local media. They include miner Rio Tinto and an agricultural consortium made up of Bunge, Cargill, Louis Dreyfus Company, Asociacion de Cooperativas Argentinas and Aceitera General Deheza.

The Argentinian company operates ​the Urquiza, Belgrano ​and San ⁠Martin freight lines, which together transport about 7.5 million tons of produce per year, 60% ​of which are agricultural products and derivatives.

The privatization ​plan ⁠is aimed at improving the transport of goods such as grains from the north and west of the country to key ⁠export ​ports in the Rosario region.

Argentina is ​one of the world’s largest grain suppliers and has a developing mining ​sector.

Source: Reuters

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