Mexico's Grupo México Enters Argentine Rail Privatization Race

Grupo México is evaluating participation in the privatization auction for Belgrano Cargas, Argentina's freight rail network, according to sources close to the company on June 11, 2026. The government of Javier Milei is expected to publish the privatization bid documents next week.

The conglomerate led by Germán Larrea Mota-Velasco is also exploring investments in mining and power generation across Argentina, according to Bloomberg Línea. The company has confirmed a $3 billion investment plan over five years to modernize and expand infrastructure, reported Ámbito. The deal hinges on gaining eligibility for Argentina's Large Investment Incentive Regime (RIGI), which offers fiscal and exchange rate stability.

Competitive Landscape

Grupo México operates Mexico's largest rail freight network, Ferromex, and is competing for three Argentine rail lines, Belgrano, San Martín, and Urquiza, which are critical for grain and mineral exports. Key competitors include:

Strong Financial Position

Grupo México's first-quarter 2026 results demonstrate its financial capacity: revenues of $5.565 billion (up 32.7% year-over-year) and EBITDA of $3.314 billion (up 49.6%). The mining division generated $4.607 billion (up 37.7%) while the transport division contributed $896 million (up 15.6%).

Timeline and Impact

The bid documents are slated to open next week, with the contract award expected in mid-2026. Grupo México's participation would represent Mexico's largest freight rail infrastructure investment in Argentina and create an additional export route for its mining operations.

Frequently Asked Questions

**How much would Grupo México invest in the Belgrano Cargas privatization?**

Grupo México has confirmed a $3 billion investment plan over five years to modernize and expand Belgrano Cargas, contingent on obtaining RIGI status from the Argentine government.

**Which companies are competing with Grupo México?**

Competitors include global grain traders Bunge Global, Cargill, and Louis Dreyfus, the Argentine Cooperative Association led by former senator Roberto Urquía, and Anglo-Australian mining company Rio Tinto, which has a nearby lithium project on the C-14 branch line.

**When will the Belgrano Cargas auction take place?**

The Milei government will publish the privatization documents next week, with a contract award expected in mid-2026. The operation covers the Belgrano, San Martín, and Urquiza rail lines.

Sources