Argentine Railroad: Understand its history and a possible integration with Brazil
With the largest rail network in Latin America, surpassing even the Brazilian one, Argentina, which was once one of the largest in the railroad industry, currently finds itself in a dilemma that also involves Brazil: is the continuation of the Argentine railroad project viable?
With a network that currently has 4,000 more kilometers of tracks than Brazil, with 34,000 active kilometers, Argentina is one of the most important countries in South American economic integration, so this integration could become geographical and logistical. .
Content Index
History of the Argentine Railroads
The history of the Argentine railroads begins in a similar way to the French and American ones. In the 19th century, with the beginning of the policy of opening up private companies for the creation of railroads,the main means of construction was through independent entrepreneurs. After that, at the beginning of the 20th century, responsibility was transferred to the State, as in many other parts of the world, so that the government took control of the public regions crossed and generated by the railroad stations.
However, as in Brazil, this proved to be a major problem for Argentine railroads, as with state management, the reduction of their use was encouraged. Losing more than 10 thousand kilometers of railroad network, the situation got even worse with the rampant use of highways, which today dominate almost the entire American continent.
Even so, this does not seem to be the end of the Argentine railroads, because assimilating to Brazil, both railroad sectors passed into the hands of the private sector again, and in the 1990s, new projects for reactivation and activation of lines and connections in the main areas of the country.
With this geographical opportunity to be located right next to the great Brazilian networks, the stories of recent years bring hope for a connection between the great South American railroads.
Active railroads
With the renovation done through international investment recently, the active Argentine railroads could become even bigger in the future. With a project, signed in 2013, the objective is to resume active railroads that reach more than 9 thousand kilometers of route and expand this to another 1600 kilometers.
This project is extremely important, as the transport made on Argentine railroads is vital for the proper distribution of grains in the country, the main commodity produced and transported by this sector.
Possible South American integration
Therefore, a possible integration between Argentine railroads and South American railroads seems to become increasingly viable in the future. This is a project that has already been probed by international investments, as already mentioned, which could raise more than eight and a half million dollars for funds.
The reason behind this idea lies in the fact that Argentina already has export corridors connected to Brazil and the south of the country, where the rail flow is greater and where grain transport is already carried out through private initiatives.
Therefore, only by overcoming bad policies and State interventions, which cause problems for the administration of the railroad sector,will it be possible to found something as ambitious as the junction of Argentine and Brazilian railroads.
If the recent ventures with international investments are successful, it may not be so difficult to attract changes capable of raising great economic expansion.
Foreign capital on Argentine railroads
We know that Argentine railroads urgently need external financing. Financing capable of bearing the initial costs of the project, connecting countries efficiently, changing networks, adjusting the communication sector (which in Argentina until recently was done by outdated systems).
China and Brazil are already on the way to participating in this financing, and much of this is due to the fact that these countries will take full advantage of the proposed connection, generating lower prices, greater facilities for transporting products that suffer from perishing, an increase in the international economy, in addition to the diplomacy generated by renovating a transport system as important as the Argentine railroads.
Conclusion about the Argentine railroads
The Argentine railroads need to receive due attention from both the public and private sectors, as their return potential is great, because when understanding that with a rail system connected to other countries, it is extremely important and that it will only be carried out if there is a and international support.
That is why it is important that it be discussed and argued about the potential that a South American connection can bring, and convince investors that it will be an excellent way of financial and logistical return for both countries and also for the international commodity trade.
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And we also have content that explains the rail network of some Brazilian states, such as Rio grande do Sul, Mato Grosso, Santa Catarina and among others.
Searchs:
https://pt.wikipedia.org/wiki/Transporte_ferrovi%C3%A1rio_na_Argentina
