The Chinese Railway Corporation has signed a $4.7 billion agreement with the Argentine government to improve the country's railway system.

On December 11, Argentina and Chinese companies reached four agreements to electrify the power grid, replace diesel locomotives, and update freight railroads to connect farmland in the northwest, west and south of Argentina with the eastern port area.

The Chinese companies involved include China Railway Construction Corporation (CRCC), China National Machinery Corporation (CMEC), CRRC and Yutong.

The biggest project will be the upgrade of the Saint Martin production line, costing US$2.6 billion. This will involve 1,813 kilometers of track work in Buenos Aires, Santa Fe, San Luis, Cordoba and Mendoza. This railway will increase its freight capacity and speed.

The renovation of the 911-kilometer Belgrano freight line will cost US$820 million and will benefit agriculture in the provinces of Jujuy, Salta, Tucuman, Cordoba, San Luis, Santa Fe, Buenos Aires and Catamarca.

Approximately US$490 million will be used to phase out diesel trains on the Belgrano and Samiento lines, as well as coastal passenger trains on the Mitte line that connect Buenos Aires to the rest of the country. China will supply 211 electric locomotives.

Argentine Minister of Transport Mario Meoni said: "The signing of a US$4.695 billion cooperation agreement with China is an extremely important investment in Argentina, and it is a good start for the transformation and upgrading of the Argentine railway."

Further reading: About the general content of the contract (for reference only)

Through three freight railway renovation projects with Chinese companies, 28,452 jobs will be created in 13 provinces, with a total investment of US$4.204 billion.

• The first part includes the signing of a contract with CMEC to transform the Belgrano Cargas railway, with an investment of US$816 million;

• The second part includes the memorandum of understanding signed with CMEC to repair the Norpatagonico train, the total amount is 784 million US dollars;

• The third part includes an agreement with CRCC to invest US$2.26 billion to restart the San Martín de Trenes Argentina Cargas line.

The fourth US$490 million agreement signed is a memorandum of understanding with CRRC International on train procurement.

1. Cooperation with CMEC's Belgrano Cargas railway transformation.The agreement with CMEC will be to repair the Belgrano Cargas railway. It will invest US$816,716,703 and allocate 65% for railway engineering and 35% for rolling stock and other equipment.

2. Signed a memorandum of understanding with CMEC to repair the Norpatagónico railway with USD 784 million.The project aims to restore existing routes between Galván, Empalme Aguará, Cippolletti and Contralmirante Cordero.

3. Reached an agreement with CRCC to restart the Argentine San Martin freight railway

4. Reached a memorandum of understanding with CRRC International on purchasing passenger train rolling stock

Agreement scope:

• BELGRANO SUR LINE: 111 vehicles, parts, tools, training and technical assistance.

• SARMIENTO LINE: The purchase of 45 electric vehicle sets will allow 5 trainings to be incorporated into the production line and increase the frequency of services.

• TREN DE LA COSTA: Purchase 20 EMUs and spare parts.

• Regional and nearby services: purchase 90 internal combustion vehicles and spare parts.Editor/Huang Lijun