Argentina, China sign billion-dollar cargo railway renovation deal

Eliana Raszewski, Cassandra Garrison November 30, 2018

BUENOS AIRES (Reuters) – Argentina on Thursday said it had signed a $1 billion contract with a Chinese state builder for improvements to a rail line that transports raw materials, including the South American country’s main cash crop of soybeans.

The project with China Railway Construction Corporation Limited will repair or renovate 1,020 kilometers (634 miles) of railway that runs through the capital Buenos Aires, Rosario – the country’s main grains shipping hub – and Mendoza province, the country’s wine-producing region at the base of the Andes mountains in the west of Argentina.

The country’s once-vibrant grains cargo railway system has fallen into disrepair, leaving farmers to rely on trucks to transport soy, wheat and corn to the ports that dot the banks of the Parana River. That waterway, Argentina’s main export thoroughfare, leads to the shipping lanes of the south Atlantic. China is the main importer of Argentine soybeans.

“When the works are finished, the expectation is to go from 1.5 million tonnes of shipments this year to 3 million tonnes in 2025, and eventually to 8 million tonnes in 2030,” the transport ministry said in its announcement, which did not provide information about the deal’s financing structure.

The project, which will create about 3,800 jobs, will enable the line to support longer trains and reduce transportation costs by 55 percent, the ministry said.

A number of deals are expected to be announced during Chinese President Xi Jinping’s visit to Argentina this weekend, including a multi-billion dollar agreement for the Chinese-funded construction of a nuclear power plant.

China has widened its economic influence in Argentina in the last 10 years by positioning itself as a major financier of Argentine projects, mainly infrastructure, worth a total of about $18 billion, according to a Reuters review of Chinese state funding data compiled by the Inter-American Dialogue, a Washington-based non-profit think-tank.

Reporting by Eliana Raszewski; Additional reporting and writing by Cassandra Garrison; Editing by Ross Colvin and James Dalgleish

Source: Reuters “Argentina, China sign billion-dollar cargo railway renovation deal”

Note: This is Reuters’ report I post here for readers’ information. It does not mean that I agree or disagree with the report’ views.

3 Comments on “Argentina, China sign billion-dollar cargo railway renovation deal”

  1. Steve says:

    Clearly, China is a global power supports multilateralism, signing massive deals and providing low interest rates loans to developing countries, whilst the US is soaking its hands in human bloodbath in the Middle east. China a geostrategic economic power, US a military hegemonic warmonger.

    Liked by 1 person

    • kommonsense says:

      one is the true master race.

      the other is a heinz 57 “race” consisting of the dregs of european society and mental defectives and criminals.

      the proof is in their history, modern actions, national “sport”, and “music”.


      • Steve says:

        True – One venerated for the possession of wisdom and sagely traditional culture.

        In 2003, then Chinese premier Wen Jiabao spoke at Harvard university and said, ‘harmony without uniformity’ is a great idea put forth by ancient Chinese thinkers. It means harmony without sameness and difference without conflict. This is absolute truth as our universe unites diversity and all forms of life.

        The other is barbarism using military force to unite sameness under democracy, but humans are not suitable for democracy due to vexations, lies, deceit and corruption all under the pretext of freedom of speech. As proof, worldly people has been seduced by the hippie revolution calling themselves flower children promoting free group sex, orgies, hallucinogen drugs, cigarettes, alcohol, gun possession, demon music, now ufc sport, sanctions, military intervention, etc, etc.