Transport & Infrastructure
From The Report: Argentina 2018
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Investing in transport infrastructure could boost Argentina’s overall economy, given the sector’s growing contribution to GDP. In 2017 the transport and communications sector represented 8.1% of GDP compared to 7.3% in 2016, according to the National Institute of Statistics and Census. The government has demonstrated its intent on improving the transport sector, with ample investment and PPP opportunities present. Enhancing the connectivity of local industries to principal logistical hubs by road, railway, river and/or air will inevitably improve regional economies and stimulate Argentina’s overall economic and social development. This chapter features interviews with Guillermo Dietrich, Minister of Transport; and Ezequiel Lemos, President, Trenes Argentinos Cargas.

Articles from this Chapter

Overview

Paved with opportunities: Infrastructure development plans to open up opportunities for private investment
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 A paved road network extending almost 80,000 km, the largest train network in South America, 50 commercial harbours and 54 airports form Argentina’s transport system, which caters to 43m inhabitants and 500m-700m tonnes of freight each year. Though expansive, the Argentine transport network has a lot of room for improvement when compared to its regional neighbours. In its 2016 “Highways to Heaven: Infrastructure Determinants and Trends in Latin America and the Caribbean” report…

Analysis

Easy going: Liberalisation efforts in aviation coincide with sector growth
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 New incentives for private carriers, improved infrastructure and expanded travel options are driving growth in Argentina’s aviation sector, with increased competition coinciding with higher passenger numbers. In early April 2018 Guillermo Dietrich, the minister of transport, announced a series of measures to encourage international carriers to enter the aviation market. Addressing a seminar hosted by the International Air Transport Association (IATA) in Santiago, Chile, Dietrich said…

Interview

Cultivating competition: Guillermo Dietrich, Minister of Transport, on boosting sector activity to help build international competitiveness
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Interview:Guillermo Dietrich To what extent have transparency and compliance been promoted in the public tendering process? GUILLERMO DIETRICH: One of the first and most important mandates was the eradication of corruption in public administration, supported by all government members. The Ministry of Transport (MoT), having one of the largest budgets due to heavy investment in infrastructure, has a particular responsibility to support these efforts. We have changed the tender and purchasing…

Interview

Cargo carrier: Ezequiel Lemos, President, Trenes Argentinos Cargas, on leveraging cargo trains and railroads for increased efficiency
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Interview:Ezequiel Lemos How would increased railroad use and a revamped freight train affect growth in the country’s interior? EZEQUIEL LEMOS: The main cost for the agricultural industry in the inland regions of Argentina is freight, with high logistics costs limiting the possibility of reaching many markets with competitive prices intact. In consumer goods, which are almost entirely moved overland by road, the cost of freight is 21%. Argentina is a country with enormous distances to travel,…

Analysis

All systems go: Moves undertaken to increase both public and private investment
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 In March 2018 the Ministry of Transport (MoT) announced that it would invest AR131bn ($6.8bn) in transport infrastructure projects in 2018, 32% more than the amount invested in 2017. Guillermo Dietrich, the minister of transport, said at the time that the additional investment is possible due to the ministry having saved some AR71bn ($3.7bn) as a result of greater transparency and more efficient use of resources. Among the projects earmarked for investment is a 4.5-km road bridge connecting…

Interview

Air on the safe side: Martín Eurnekian, President, Aeropuertos Argentina 2000, on the Aeroplane Revolution and deregulation in a global context
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Interview:Martín Eurnekian How is the sector responding to changing policies? MARTIN EURNEKIAN: The government of President Mauricio Macri has prioritised promoting domestic air transport under the so-called Aeroplane Revolution. This industry depends on the volume of activity, with greater volumes positively correlating to sector strength. It is important to understand the origin of demand and make strategic investments to maximise returns. The plan is to generate competition by introducing…

Interview

New avenues: Oscar Andreani, President, Grupo Logístico Andreani, on the opportunities for new business models in logistics
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Interview:Oscar Andreani How is technology impacting Argentina’s logistics industry, and how is the private sector adapting? OSCAR ANDREANI: There is no doubt that the future of parcel logistics will be affected by e-commerce consolidation. This situation has radically changed the business model of all logistics companies and forced us to adapt our internal operations to the digital world. The sector is becoming more technological in order to satisfy the growing demand of customers. The…