The Cristina Fernández de Kirchner administration will announce the takeover of three train lines today, sources from the Interior and Transport Ministry headed by Florencio Randazzo told the Herald.
The concessions for the San Martín, Roca and Belgrano Sur — three of the seven metropolitan railway lines — will be rescinded from the Railway Operations Management Unit SA (UGOFE), an emergency unit operated by companies Ferrovías and Metrovías financed by the national government, and will become part of state-run company SOFSE.
It’s not a straight-up nationalization — but it comes close.
This would mark the first major economic measure taken by the Fernández de Kirchner administration after the disappointing performance in the primaries of August 11, and may be followed by other high-level economic announcements — including the much-demanded increase of the income tax floor.
The alleged project for the San Martín, Roca and Belgrano Sur train lines — that connect the City with some 30 Greater Buenos Aires districts — is part of a greater scheme designed by Kirchnerism to improve transport in the metropolitan area.
‘90 days to adapt’
The UGOFE emergency unit began operations after late former president Néstor Kirchner rescinded the private concession of these lines from 2004 to 2007.
Under this second model, companies Metrovías (part of the Roggio Group) and Ferrovías (owned by businessman Gabriel Romero) run the service “on behalf of the state,” which means the government pays all salaries on these three lines, which transport 13,360,000 passengers every month.
Last year, after the Once station crash that left 51 dead, the government forced out then-Transport secretary Juan Pablo Schiavi and enlarged the role of Interior Minister Florencio Randazzo to include the transport area, which was taken away from the powerful Planning Minister Julio De Vido.
By June, before the crash in the Greater Buenos Aires area of Castelar, companies were receiving a state subsidy of 13 pesos per passenger.
Now, according to Pagina/12, the government will make the transfer of these lines to SOFSE, a state-run division that is already operating the Belgrano Cargas freight service and the tourist-oriented Tren de la Costa.
Metrovías and Ferrovias will have 90 days to adapt to the new regulations — although the companies will still be in charge of running the service.
The beat-up Mitre and Sarmiento lines, currently operated by UGOMS (another emergency unit), may be next.
Meanwhile, new infrastructure works and the maintenance of stations will be transferred to the Railway Infrastructure Administration (ADIF), which is now under the direction of CNRT transport watchdog head Ariel Franetovich, a close Randazzo ally.
Overall, this may allow some leeway for the Interior and Transport Minister at the expense of the second-line officials, who still answer to De Vido.
But it is still far from the straight-up nationalization scheme railway unions have demanded for metropolitan trains.
Next stop: income tax floor?
This is the first of many measures the government is preparing to announce before the October 27 midterm elections.
Last week, top Kirchnerite lawmaker candidate Martín Insaurralde — who lost the primaries in Buenos Aires province to Tigre Mayor Sergio Massa — acknowledged the government was analyzing a hike in the income tax floor, which is currently paid by all workers earning more than 8,360 pesos (11,563 pesos for married workers).
“We need to discuss the income tax, I’m sure the Executive branch is going to do it,” Insaurralde told pro-government TV show 678.
Yesterday, Victory Front (FpV) lawmaker Héctor Recalde confirmed he was working on a bill to raise that floor — following directives from the leader of the FpV caucus in the Lower House, Juliana Di Tullio.
But Recalde also revealed he intended to shorten the work week “from 48 to 45 hours,” something that would enable “the creation of 200,000 new jobs.”
“If we have two people working twelve hours a day, they prevent a third one working eight (hours). We need to divide those 24 hours of work by three and not by two,” Recalde told Radio Continental.
A final and much-talked about fiscal measure is a potential tax on financial transactions. This was already hinted by some Renewal Front candidates, but the government may want to take the lead in this aspect: at the beginning of the month, AFIP head Ricardo Etchegaray said some 5,500 million pesos could be raised by this new tribute.
Herald with DyN, Télam
Station to station
San Martín Line
Route: Retiro (BA City) to Pilar
Run by: UGOFE emergency unit
Number of passengers carried per month: 4,200,000
Belgrano Sur Line
Routes: Buenos Aires Station (BA City) to González Catán / Buenos Aires Station (BA City) to Crucero General Belgrano (Merlo)
Run by: UGOFE emergency unit
Number of passengers carried per month: 1,160,000
Roca Line
Routes: Constitución (BA City) to La Plata City / Constitución (BA City) to Alejandro Korn / Constitución (BA City) to Cañuelas / Constitución (BA City) to Haedo
Run by: UGOFE emergency unit
Number of passengers carried per month: 8,000,000
Mitre Line
Routes: Retiro (BA City) to Tigre / Retiro (BA City) to Mitre (Olivos)
Run by: UGOMS emergency unit
Number of passengers carried per month: 6,300,000
Sarmiento Line
Route: Once (BA City) to Moreno
Run by: UGOMS emergency unit
Number of passengers carried per month: 3,000,000
Belgrano Norte Line
Route: Retiro (BA City) to Villa Rosa (Pilar)
Run by: Ferrovias (EMEPA Group)
Number of passengers carried per month: 3,000,000
Urquiza line
Route: Federico Lacroze (BA City) to General Lemos (San Miguel)
Run by: Metrovías (Roggio Group)
Number of passengers carried per month: 1,500,000
Massa: train services must be state-owned. As Florencio Randazzo prepared to make new announcements regarding metropolitan railway lines, top congressional candidate for the Renewal Front Sergio Massa yesterday insisted that train services should only be run by the state.
“Trains must be managed by the state and should be managed efficiently in order to make travel better for citizens,” Massa expressed after a meeting with his economic team. Analyst Ricardo Delgado, former Economy minister Miguel Peirano and former Central Bank head Martín Redrado took part in the meeting, according to a news release.
Source: Buenos Aires Herald
Chiara 
Felipe 
