At the end of 2018, the National Government approved the regulation of Law No. 27132 for the implementation of the “open-access” modality for the railway transportation of cargo and passengers under national jurisdiction.
The system is intended to allow any operator (who meets certain conditions) to offer its transport services in the medium term with the aim of increasing competition, strengthening private investments in railways and reducing logistics costs.
Eng. Juan Pablo Martínez, Director of AC&A and Head of its Railway Practice, referred to the future of cargo concessions and carried out an exhaustive analysis of the advantages and disadvantages of both open-access and the vertical integration system, analyzing the characteristics of the industry and international sources.
Eng. Martínez drew attention to the complexities that the effective implementation of open-access would entail: “Today all public freight railways and private concessionaires are vertically integrated organizations and this, let us not forget, is something strongly ‘congenital’ in railway activity. Breaking that ‘natural’ system was an initiative born in Europe in the mid-1980s to improve services through private participation and competition, but which implies having enormous resources to invest in infrastructure to allow for the viable management of eventual private operators, who must be guaranteed a railroad in good condition and efficient and safe traffic management, in addition to offering institutional strength that is still to be achieved among us, with or without open-access, but which today the transport sector lacks,” he explained to the site En el Subte.com.
To access the complete interview, visit: https://enelsubte.com/noticias/juan-pablo-martinez-dudo-de-la-conveniencia-de-implementar-el-open-access/