Argentina Procurement News Notice - 52933

Procurement News Notice

PNN 52933
Work Detail Railway system: What are the proposals of Massa and Milei regarding Argentine trains? Massa revolves around the Historical Railway Repair bill while Javier Milei proposes an approach more oriented towards privatization and business efficiency. What is the viability of these proposals? Milei, Massa and the Argentine trains Sergio Massa and Javier Milei will compete for the Presidency of the Nation in the 2023 runoff. The elections will be held this Sunday, November 19. That day will define the destiny of the country for the next four years. In Argentina, there is no doubt that an improvement and extension of the railway system can generate a positive impact for regional economies, facilitating and economizing the transportation of production and people. The improvement and extension of railway networks has been a promise of several presidential candidates. Such was the case of Mauricio Macri, in the 2015 elections, with the Belgrano Plan for investment in infrastructure. On this occasion, Massa and Milei also contrast their visions regarding the future of the Argentine railway system. Privatization or state investment? Both candidates present divergent visions on the role and management of rail, raising significant expectations and challenges for economic development, regional connectivity and transportation modernization. Pension system: What do Milei and Massa propose for retirees and pensioners? What Mielu and Massa propose regarding trains Sergio Massas approach: railways as an engine of development Sergio Massa surprised in the first round of the general elections with a solid support of 36.78% of the votes. Currently, one of the most frequent searches on Google is What does Massa propose? . The current Minister of Economy has already outlined the axes of his proposals before the electoral chamber. In the railway field, he has repeatedly stated that his proposal revolves around the Historical Railway Repair bill, whose intention is to ensure an annual investment of 0.5% of the Gross Domestic Product (GDP) destined for the railway system. . These funds will not be used for current expenses, but specifically for investments in infrastructure, rolling stock and traction. Javier Mileis economic proposals put neighborhood clubs on alert This project, inspired by the laws of educational financing (with a current goal of 6% of GDP, which is proposed to be raised to 8%) and scientific financing (with a goal of 1%), has been under development by Ferrocarriles Argentines for several months. Although the presentation of the project was scheduled for previous weeks, it was postponed due to agenda issues and the electoral ban. In the recent draft Budget 2024, some of the investments that can be anticipated as part of this plan are outlined. This includes the continuation of the renovation of the Belgrano Cargas, the modernization of the San Martín Railway trunk line between Buenos Aires and Mendoza, as well as various initiatives in the Buenos Aires metropolitan network. Among the latter, the electrification of the San Martín and Belgrano Sur lines, the incorporation of new sections on the Miter line, and the renewal of tracks and signaling in several corridors, in addition to the completion of ongoing modernization works, stand out. The acquisition of zero kilometer formations from China for the Roca line and for regional services is also contemplated. It should be noted that all these investments have international financial support, guaranteed by entities such as Chinese banks, the Inter-American Development Bank (IDB), the World Bank or the Andean Development Corporation (CAF). Trains in the spotlight: The proposals of Massa and Milei Javier Milei: privatization and business efficiency The libertarian candidate obtained 29.99% of votes in the general elections. Milei, in railway matters, proposes an approach more oriented towards privatization and business efficiency in the railway sector. "When we had the best railway system in the world it was English," Milei said in an interview conducted by América. Dollarization, exchange rate stocks and Central Bank: the proposals of Milei and Massa in relation to the dollar Although he has not fully detailed his plan for the railway, Milei has expressed in his electoral platform the idea of ????promoting the "repair and expansion of railway networks with private resources." However, the presidential candidate posted an image on Instagram, with a graphic style similar to that currently used by the Argentine government, titled: "Fake News about Milei" which gives rise to confusion. In this list made up of 26 items are some of her proposals, which she maintained throughout her campaign, branded as false even though they appear in his electoral platform. Fake News about Javier Milei Source: Javier Mileis Instagram Who privatized the trains in Argentina? It should be noted that Argentine railways were under British control since the middle of the last century, when the railway network was introduced in the country. As the decades passed, the expansion of the railway system also involved the intervention of the State. Javier Mileis economic proposals put neighborhood clubs on alert The extension of the system throughout the country reached its peak after the nationalization of all lines in 1948, which covered 48 thousand kilometers of tracks. However, this network was considerably reduced during the privatization promoted by Carlos Menem. The recovery of state control over the railway system vindicated and restored the importance of trains, allowing around 1.5 million workers to travel daily in the metropolitan area with subsidized fares that help alleviate costs for users. 2203_trains How is the Argentine railway system currently composed? Currently, the country has three train lines: Belgrano, San Martín and Urquiza. Together they total 9,100 operational kilometers and cover 17 provinces. This represents 70% of the country with five international steps. It has eleven Productive Units distributed in the provinces and eight workshops. Cargoes include cereals, oilseeds, by-products, sugar, cement, stone, flux, coal, fertilizers, metals, wood, wine, olives, molasses, water and other eventualities. Two opposing visions for the railway future The train is nostalgically remembered as a symbol of progress and prosperity by those Argentinians from localities who lived when it passed through their regions. Many of them attribute the subsequent impoverishment of their localities or the closure of some agro-industrial businesses in their areas to the disappearance of this means of transportation. Let us remember that the train ensured a profitable price for producers, in addition to being an economical means of transporting people. DOnofrio: «Massa has proposals and on the other side there are TV sockets» At the Argentine electoral crossroads, the fate of the railway system became one of the key points of debate between Massa and Milei. While Massa advocates for greater state commitment, investment and institutional changes, Milei is committed to privatization and the efficiency of the private sector. These divergences not only delineate two opposing models of railway management, but also raise questions about the viability and sustainability of each proposal. The result of the elections will not only define who will lead the country, but also what direction the Argentine railway system will take in the coming years. Source: Profile
Country Argentina , South America
Industry Railways
Entry Date 16 Nov 2023

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