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Response to forest444 (Original post)

Sun Mar 1, 2015, 07:07 PM

4. Great news! Carlos Menem, friend of George H. W. Bush, and his sons, was the one who privatized them

before he was arrested for smuggling, illegal weapons trafficking, and moved to Chile to avoid extradition for embezzlement charges.

Found this in Wikipendia regarding the privatization:

Between 1992 and 1995, the government decided to privatise into segments the state-owned company Ferrocarriles Argentinos (FA), which comprised the six relatively independent divisions, Sarmiento, Mitre, Urquiza, San Martin, Belgrano and Roca, and granted concessions to private companies for their operation through competitive bidding. The decision was taken by the former President Carlos Menem and formed part of his neoliberal reforms.

At the start of the concessions, service quality greatly improved, and traffic began to grow again. However, as more locomotives and rolling stock were needed the private companies became increasingly reluctant to make the investment required to increase capacity and service quality began to decline again.

In addition, automobile industry interests seeking the demise of the railway, purchased lines for far less than their real value. As with other privatization schemes under Menem, members of Congress in both the Peronista and Radical Parties, as well as railway union officials, received monetary favors for allowing the dismantling of Ferrocariles Argentinos. The closing of most of the rail system led to the emptying of many towns of the interior, and therefore to a dismantling of the development that had taken place there since the arrival of trains. Argentine agriculture found itself in the difficult position of shipping its goods more expensively and inefficiently by individual trucks.

The economic crisis in 2001 was the final blow and neither the private companies nor the government could provide the service required. In 2003, the new administration of President NÚstor Kirchner set it as a key policy objective to revive the national rail network. Although the economic upturn saw traffic grow again, the suburban rail operators are now little more than managers of government contracts rather than true entrepreneurs.[4]

In June 2012, the government announced that it was renationalising some freight railways.[5]

http://en.wikipedia.org/wiki/Rail_transport_in_Argentina#Privatisation

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What a shame the railroads were bumbled away for privatization, what a victory it will be when they can be used by the people again.

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forest444 Mar 2015 OP
bloomington-lib Mar 2015 #1
Igel Mar 2015 #3
forest444 Mar 2015 #5
rpannier Mar 2015 #8
forest444 Mar 2015 #9
allan01 Mar 2015 #2
forest444 Mar 2015 #7
LineNew Reply Great news! Carlos Menem, friend of George H. W. Bush, and his sons, was the one who privatized them
Judi Lynn Mar 2015 #4
forest444 Mar 2015 #6
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freshwest Mar 2015 #10
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