Trenes de Buenos Aires (TBA)

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Trenes de Buenos Aires (TBA) signed a concession contract to operate the Mitre and Sarmiento lines of the Buenos Aires Metropolitan Railway in 1995, and took over operations on May 29, 1995. To prevent further deterioration of the Buenos Aires metropolitan railway network, the President had created a new state-owned corporation, FEMESA, in March 1990. It was soon prepared for privatization (via lease/concession contracts). FEMESA divided the network into 7 lines: Mitre, Sarmiento, Urquiza, Roca, San Martin, Belgrano North, and Belgrano South. The government called for bids under a 2-stage bidding process. Bids were decided on the basis of lowest subsidy required, and pre-awarded for all 7 lines in January 1993. Each concession contract is for 10 years with optional 10 year extensions. The TBA consortium set up by members of the Metrovias consortium, comprises: Cometrans (41.65%), Morrison Knudsen Rail Corporation (41.65%), and Burlington Northern Santa Fe (US - 16.7%). The consortium operates a total 350km of track (182km Mitre line and 167km Sarmiento line). TBA paid a canon of US$84 million to the government for the Mitre line, but received a US$177.9 million subsidy for investment in the Sarmiento line. In 1997, TBA invested US$25 million to set up a ticket system, and is undertaking station and track rehabilitation. It signed a US$95 million contract with Siemans in 1995. TBA increased passengers on the Mitre line from 37.8 million in 1994 to 69.8 million in 1996. On the Sarmiento line passenger increased from 59.9 million to 99.3 million over the same period. In early 1998, TBA negotiated with the government for an extension of its concession for another 20 years together with an expanded investment program. TBA will receive its final operating subsidy of US$3 million in 2000. The government has waived infrastructure charges in return for increased investment. In March 1999, the government signed a 20-year contract extension with TBA and an up to 100% fare hike in exchange for US$2 billion in additional investments. None None