Privatisation , not the solution?
So we stay with the current model of public ownership Years of under investment . ancient rolling stock, customer satisfaction at record.... lows. That doesn't make a lot of sense.
What is your solution?
Privatization IS the solution. Great to hear the government is going to push forward on this.
The Argentine government, has announced plans to privatize several state-owned enterprises, including the Belgrano Cargas train line.
This initiative is part of a broader strategy to reduce the fiscal burden on the state by transferring public services to the private sector. Manuel Adorni, a presidential spokesperson, highlighted that the state invested approximately $112 million in Belgrano Cargas last year, emphasizing the government's commitment to privatizing entities that can be operated more efficiently by private companies.
The privatization of Belgrano Cargas is not an isolated case but part of a larger trend toward privatization in Argentina. This includes other significant entities such as Aerolíneas Argentinas and various infrastructure and utility companies.
The move is driven by economic reforms aimed at improving efficiency and reducing public expenditure on loss-making enterprises. The government believes that privatization will lead to better management and service delivery by leveraging private sector expertise and investment.
Historically, railway privatization in Argentina began in the late 1980s and early 1990s under President Carlos Menem, but was largely reversed in 2015 due to various challenges and criticisms regarding service quality and infrastructure deterioration.
The current government appears determined to revisit this approach, hoping for more successful outcomes this time around.
Overall, the decision to privatize Belgrano Cargas reflects a significant shift in policy towards reducing state involvement in certain sectors of the economy, to foster a more market-driven environment.