Argentina Transportation Infrastructure Sector
The transportation infrastructure sector in Argentina has been relatively stagnant due to the political and economic environment defined by the mantra “No hay plata” which translates to “There is no money.” In December 2023 the Milei administration took office and has undertaken several economic reforms in efforts to spark a rebound and improve the commercial outlook. Public spending has been drastically reduced to balance the budget and this impacts the ability of the government to invest in long-term infrastructure projects. Most projects are on hold until at least 2025.
The look-ahead for US companies includes opportunities in the following areas:
Ports: Argentina’s ports are in need of modernization and upgrades. Argentina’s main port, the Port of Buenos Aires, where more than 70% of shipments are handled, has not yet developed any strategic plan for modernization. Forecasted opportunities include dock dredging, filling services, and equipment, in addition to security, control, and cargo handling technologies necessary for modernization. The southernmost Port of Ushuaia, requires expansion to support Antarctic campaigns including the construction of a new terminal for tourism vessels. Both aforementioned modernization projects are still under discussion.
The Parana River presents significant potential for further development as 80% of Argentina’s exports sail through the waterway that flows from Paraguay down to the Port of Buenos Aires. Current needs include dredging services and equipment/technology related to water treatment.
Airports: Seven airports were modernized in 2022. Further modernization of airports is planned, including the expansion of the domestic airport in the City of Buenos Aires. The major opportunity for US companies involves passenger handling technology.
Roads: There are 18,000 miles of paved roads in Argentina, with significant needs for maintenance and development in rural areas of the country. Although the construction of roads is mainly developed using local labor and materials, there are opportunities for suppliers of porous asphalt technology and multifunction paving machines.
Railways: There are 12,000 miles of rails in Argentina. This represents only 50% of the once operable railroads which have seen significant reduction due to the lack of profitability in the sector. China, and Russia are the main providers of equipment (rails, wagons), and opportunities for US businesses exist in the electrification of diesel locomotives and communication equipment.