Another country discovers the perils of privatization.
ARGENTINA:
Privatisation of Trains Derailed
Marcela Valente
June 25, 2004, Inter Press Service News Agency
http://ipsnews.net/interna.asp?idnews=24370
The privatisation of Argentina's railways was a slick
business deal in the 1990s for the companies that began to
run the train service with subsidies from the state.
BUENOS AIRES, Jun 25 (IPS) - But a decade later, the private
management of the passenger and cargo railway services
through concessions has turned out to be a fiasco for both
passengers and the public sector, say experts.
The total network of railway lines shrank from 35,000 to
8,500 km, and the number of employees from 95,000 to 15,000.
Not even the state benefited from the privatisation. It now
spends the same amount on subsidies to the private companies
that it used to spend on maintaining the railway lines.
The government is now trying to find solutions for the worst
problems by rescinding some contracts and issuing new public
tenders.
7:27:42 AM 
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