Argentina received on Friday a shipment of 150 brand new train wagons from China to renew its railway cargo transportation system, a minister said.
It was the first shipment out of the 3,500 wagons and 100 locomotives Argentina has acquired with the help of a Chinese loan of 2.47 billion U.S. dollars to renovate its cargo fleet and 3,000 kilometers of railway lines, said Transport Minister Florencio Randazzo.
"This purchase, encouraged by President Cristina Fernandez de Kirchner, is of vital importance to reducing the logistic costs of goods transportation in the 18 provinces," said Randazzo.
He added that train tracks renovation is also ongoing and the government has spent over 480 million dollars on construction works.
All the material will arrive before June 2016, said Marcelo Bosch, president of Belgrano Cargas company, a state owned operator of cargo railway services.
China has provided a range of equipment and expertise to help Argentina renovate its railway lines, key to boost economic development.
In 2013, China South Railway (CSR) won a 1-billion-dollar contract which provides 709 carriages to renew Argentina's commuter system. By the end of July 2015, all the 709 carriages had been shipped to the South American country.
Besides buying carriages and locomotives, Argentina also introduced signaling systems and other services from China, as a part of technological cooperation to revive its railway industry.
The Argentine government has worked to refurbish its railway in recent years, aiming to provide a better system for passengers and cargo with lower costs and to stimulate its inland economies.
