Belgrano Cargas Tender: Sáenz Demands Mandatory Works on the C-14 and C-15 Railway Lines

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Belgrano Cargas Tender: Sáenz Demands Mandatory Works on the C-14 and C-15 Railway Lines
Sáenz highlighted the additional logistics costs faced by production in northern Argentina and their impact on mining competitiveness.
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Gustavo Sáenz made his demands public after more than a month of discussions with the Chief of Cabinet’s Office, the Ministry of Economy and the Secretariat of Transport. The governor questioned the inclusion of works on the C-14 and C-15 lines of Belgrano Cargas as optional in the tender documents and agreed on a joint demand with the seven chambers that make up Salta’s Productive and Business Roundtable. The decision is strategic for a province seeking to expand its mining exports and improve connections between the Puna and international markets.

By Panorama Minero

“The C-14 and C-15 lines, which are so important for Salta, must also be included as mandatory works,” the governor stated, questioning the conditions of the national Belgrano Cargas tender.

The governor reported on social media that he has been holding discussions with various departments of the national administration for more than a month to amend the tender documents. His main objection is that the restoration of both railway lines would be subject to subsequent decisions by the future concessionaire, rather than forming part of the commitments required from the outset.

In this regard, Sáenz noted that leaving the works as optional could delay investments necessary for the productive integration of northern Argentina. In this context, he called on representatives of Salta’s seven business chambers to support a common position.

“The railway lines cannot be left to the discretion of a few companies. The works cannot be optional; they must be mandatory,” the governor emphasised.

The demand raises questions about which infrastructure the new railway management model must guarantee and how investments will be distributed among the country’s different regions.

Logistics Costs at the Centre of the Demand

Sáenz linked the need to restore railway connections to the costs faced by Salta’s producers in reaching export markets. He stated that transporting goods from Salta to the port of Rosario can be between 30% and 40% more expensive than doing so from other Argentine regions.

“It costs much more to transport our products to the port of Rosario than from Rosario to Amsterdam,” the Salta governor stated, questioning the logistics disadvantages faced by economies located far from the main port centres.

The issue is particularly relevant to mining. Growth in lithium production and the development of new metal mining projects are increasing the need for transport alternatives capable of handling large volumes, with competitive costs and reliable international connections.

The C-14 is strategic for mining — lithium and the Taca Taca copper project — because it provides access to Pacific ports in Chile and follows the route of the Train to the Clouds. The C-15 is key to bioceanic integration with Bolivia. Under the current tender documents, the 144.5 km between Embarcación and Pocitos are listed as “SIN CIRC”, meaning no railway traffic, with no commitment to immediate reopening.

The President of the Industrial Union of Salta, Eduardo Gómez Naar, stated: “It would be a direct benefit for all Salta residents and something historic. Having a high-standard railway would connect us with Bolivia through the C-15, with the Pacific and Chile through the C-14, and would represent an extremely important change for northern Argentina,” he emphasised.

The Railway Connections Salta Seeks to Restore

The two railway lines perform different functions within the regional integration strategy.

The C-14 connects with Chile. The route links Salta and the Puna with the Socompa international border crossing and the Chilean railway network. It handles freight operations, although investment is required to consolidate and expand its capacity. Its importance for mining lies in the possibility of connecting production areas with Pacific ports and diversifying export routes.

The C-15 connects with Bolivia. The line crosses northern Salta and reaches the Bolivian border. However, the 144.5-kilometre section between Embarcación and Pocitos is listed as out of service in the information associated with the tender. Its restoration would make it possible to re-establish international railway continuity and expand transport options for agribusiness and mining production.

The network is also important for non-mining activities. Agribusiness production in northern Salta generates significant volumes of grain, sugar, paper, alcohol and bioethanol, which currently depend largely on road transport.

According to a report by Prograno, the C-15’s area of influence alone generates more than 1.8 million tonnes of grain, sugar, paper and derivatives annually, in addition to 252 million litres of alcohol and bioethanol, almost all of which are currently transported by truck. Road freight from northern Salta to the ports of Rosario costs up to US$80 per tonne and represents 22% of the price of soybeans and up to 40% of the production value of maize. With an efficient railway, they estimate a reduction in logistics costs of between 20% and 30%.

The Bioceanic Corridor and the New Andes–Atlantic Initiative

The railway demand is also linked to the debate over the international integration model needed by northern Argentina.

The provinces of the Lithium Triangle (Salta, Jujuy and Catamarca) have promoted the Capricorn Bioceanic Corridor as a means of improving regional connectivity and facilitating access to northern Chilean ports and Pacific markets.

At the same time, the national government, together with the United States, presented the Andes–Atlantic Corridor project, aimed at promoting investment in transport, energy and connectivity infrastructure to strengthen Argentine exports towards the Atlantic.

The initiative was presented as a platform to mobilise financing of up to US$7 billion by 2027 across different sectors.

The two strategies have different scopes and are not necessarily incompatible. The Andes–Atlantic Corridor seeks to strengthen connections with Atlantic markets, while the Capricorn Bioceanic Corridor aims to take advantage of northwestern Argentina’s geographical position and proximity to Chile.

The decisive issue for Salta will be ensuring that national infrastructure policy includes the connections needed to take advantage of both alternatives. In this context, the restoration of the C-14 and C-15 railway lines is particularly relevant because it could strengthen regional integration regardless of which route is most competitive for each type of freight.

Published by: Panorama Minero

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