Railway Concessions : Heading Down the Right Track in Argentina

Argentina privatized many of its railway services by concession contract during the early 1990s. The reforms have been remarkable for their speed and innovation - despite the complexity of the issues and the lack of "off-the-shelf" models to follow at the time. The overall result has been positive. Many services have improved. Traffic has grown-up about 180 million passenger trips a year. Subsidies have been cut dramatically - down from US$2 billion or so a year to a little more that US$100 million. But as with any complex reform, there is an unfinished agenda. And with the Argentine approach becoming a model for other countries in Latin America this review of the lessons starting to emerge from the reform experience is a timely one.