Argentina Kicks Off Major Highway Privatization with Mercosur Route Licitations
The Argentine government is set to publish a decree in the coming hours, initiating the licensing process for the country’s most strategic highway, the Corredor 18. This route, which includes the national highways 12 and 14 and the Rosario-Victoria Bridge, is a vital commercial corridor connecting Buenos Aires, Entre Ríos, Santa Fe, and Corrientes, facilitating trade with Brazil, Paraguay, and Uruguay.
The 675-kilometer stretch is the first step in the government’s plan to privatize the concessions of over 9,000 kilometers of highways and motorways, representing 20% of the national road network but carrying 80% of the traffic. This initiative is expected to generate significant savings for the state, estimated at USD 6.1 billion over the next 15 to 20 years.
The licitation process for the initial two segments was initially planned for December, with the handover and takeover scheduled for April 2025. However, the current concessionaire, Caminos del Río Uruguay S.A. (CRUSA), has been in a legal dispute with the state since 2009, alleging unmet tariff adjustments and contract renegotiation.
The Confederación Argentina de la Mediana Empresa (CAME) has urged authorities to address necessary repairs on these corridors, citing deteriorating conditions that increase transport costs and accidents. Meanwhile, the government maintains that the new licitation will proceed, with a new concessionaire taking over from April 10.
Following the initial licitation, a more extensive second phase is planned, involving the privatization of 8,470 kilometers of highways and motorways currently managed by Corredores Viales. This phase will include routes such as the Nacional 33 in Santa Fe, the Nacional 18 in Entre Ríos, and the variant of the Nacional 19 in Córdoba, divided into eleven sections.
The government aims to license a total of 9,145 kilometers, distributed across 13 sections. The winning bid will be the company offering the lowest user tariff, with no state canon or subsidies. Prices will remain at current levels until optimal transit conditions are achieved, with a defined ceiling and quarterly update system.
Vialidad Nacional will play a crucial role in overseeing these concessions, auditing the highways’ condition and ensuring the concessionaires meet quality and maintenance objectives. Regular inspections will assess parameters such as road surface condition and signaling.
This significant infrastructure initiative is expected to boost Argentina’s commercial competitiveness and improve safety on its vital highways.
