Argentina Banks on Railroads to Prolong Soybean Boom: Freight

Argentina’s nationalization of two railroads in the past month paves the way for the renovation of a network from the foothills of the Andes to the coast, cutting transport costs in the world’s third-largest soybean producer.

President Cristina Fernandez de Kirchner’s administration on May 22 took over the Belgrano Cargas railroad, which connects the northern provinces to Parana River grain loaders operated by Cargill Inc. and Bunge Ltd., among others. Two weeks later, she expropriated Brazil’s All America Latina Logistica SA’s concession linking western Argentina with Atlantic ports.