Grupo México withdraws from Belgrano Cargas privatization bid

Grupo México has withdrawn from the bidding process to privatize Argentina's Belgrano Cargas railway, citing disagreements with the government's proposed 'Open Access' operational model. The Mexican holding company issued a statement claiming the model is 'inefficient, reduces competitiveness, increases costs for customers, and requires public subsidies to remain viable.'

Instead of the Open Access system, which separates track maintenance from freight services to allow multiple competitors to use the same network via tolls, Grupo México advocated for a 'Vertical Integration' model. They argued that controlling the entire system, similar to practices in the United States and Canada, provides better incentives for investment and logistical planning.

Despite this withdrawal, the Argentine government maintains that interest in the concession remains high, with over 11 participants still in the running, including agricultural traders, logistics operators, and mining firms. The success of this privatization is viewed as a critical factor for the development of the mining sector, particularly for reducing export costs and carbon footprints for lithium and copper projects.