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[BUSINESS] · Argentina · 4 sources

Vaca Muerta's rail bottleneck prompts call for integrated logistics solution

Rapid expansion of the Vaca Muerta shale basin has highlighted a critical logistics bottleneck in Argentina. The surge in oil and gas production requires millions of tonnes of sand, equipment, chemicals and personnel, overwhelming existing road networks that connect Añelo, Neuquén, Río Negro and Bahía Blanca.

Proposals to alleviate the strain include the long‑delayed Norpatagónico railway, intended to link Bahía Blanca with Añelo, but the project has suffered from fragmented financing, external debt and incomplete construction. A new plan advocated by the Inter‑modal Association of South America (AIMAS) proposes a 5F integrated rail model that combines freight, passenger, trucking and port links, offering long‑term concessions up to 99 years to attract private investment and reduce reliance on state subsidies.

The debate centers on whether Argentina should repeat the pattern of large, state‑funded infrastructure projects with limited returns, or adopt a diversified, intermodal network that can handle varied cargo such as pallets, containers, grains and minerals while supporting regional economies.