Buenos Aires moves to revive the largest railway network in Latin America

Buenos Aires. Image: Getty.

If you wanted a glimpse of what life in rural Argentina is like, you couldn’t do much better than the area around the Cabred train station. Located in a tiny town where most of the streets are unpaved, many of the area’s residents opt to build their houses out of unpainted bricks and sheet metal roofs. While better off residents may choose to travel in rusted out used cars dating from the eighties, many still opt to get around on horseback.

This town would have no real reason to exist were it not for the fact that a train line runs through the area. It dates from the 19th century, and little seems to have changed since. Back in the day, the town was inhabited by Argentina’s famous gauchos: cattle raising, rabble rousing country dwellers every bit as raucous as the cowboys of the US. From the looks of things, there are still plenty of gauchos around Cabred.

But recently, the area has been given an injection of modernity. The train line, long underserved by passenger services, is now visited by the rumbling whir of shiny new rolling stock, with automatic doors, LED signs, and loudspeakers that announce each station. (Curiously, the announcer speaks with a Spanish accent, rather than the distinctive local one.) The trains are capable of whisking the town’s residents to the centre of Buenos Aires, 75km to the east, in just under two hours. They’re part of a massive effort by the national government to end a decades-long period of neglect, and make the region’s once functional train system usable once again.

Commuter trains in Buenos Aires are closely linked to the history of Argentina’s national train system. This system dates back to the 1850s, when the nation’s agricultural resources sparked a railroad building boom, funded in large part by capital from Britain: to this day many Argentines still gripe that, “We didn’t build our trains, the British did.”

The train system centred around Buenos Aires, with commuter trains playing a key role in the early development of the city’s suburbs. The network was eventually nationalised under the government of Argentina’s famous dictator-turned-president, Juan Perón. Though the results of this move have been much debated, it did allow for long distance passenger service and commuter trains in Buenos Aires to keep running as their counterparts in the rest of Latin America (and, to a large extent, North America, too) were phased out.

The central section of Buenos Aires's extensive rail network. Edited image from Wikimedia Commons.

But this arrangement met its end in the early nineties under the leadership of free market president Carlos Menem, who decided it was time for the railroad to be run by the invisible hand of the free market: this, in practice, meant not being run at all. After he pulled the plug on the country’s public ownership of the trains, all but a few long distance passenger lines ended completely. Commuter trains in Buenos Aires continued to run – cutting them would have had political consequences – but the mind numbingly complex public/private management system left little incentive for train companies to update their equipment. The consequences of this were slow to make themselves known, but would ultimately be devastating.

The trouble began in 2001, when an economic crash ate into passenger numbers, and the private concessions who ran the commuter trains to start cutting corners. At first, this merely resulted in ugly, graffiti ridden train cars; but then those cars began to break down. By 2012, the crippling lack of maintenance would result in tragedy, when a train arriving at Once (pronounced own-say), a central train station in Buenos Aires, lost its brakes and slammed into the barriers. The accident killed 51 people, and left hundreds more wounded.

The accident was a wake up call for the national government, and resulted in corruption charges against transport ministers both past and present. But once Florencio Randazzo took over the transport brief, the national government finally got serious about fixing the city’s broken train system.

The government launched a $1.2 billion renovation programme. The plan was to modernise the fleets of all of the commuter rail lines that branch out from Buenos Aires’s urban core, and reconfigure stations with elevated platforms for wheelchair access. The city’s southern Roca Line will be electrified. Formerly disused stations like Cabred and Marcos Paz will be reincorporated into the commuter rail network. There are even plans to reopen key long distance lines as well, though those are admittedly much further off.

The program took effect in early 2014, and so far new trains have entered service on two lines: the San Martin, which connects to Cabred, and the Sarmiento, made infamous by the Once crash. But according to Federico Pallés, editor of the popular Argentinian railroad website Satélite Ferroviario, regular users are starting to take notice. “After the 2001 crisis, many regular commuters stopped using the trains and never came back,” he says. “Today, regular users are the only ones seeing the effects of the new plan. But since taking the train is still faster than driving, some of the people who started driving after 2001 may eventually switch back.”

These improvements have generally been seen as a success, so much so that the federal government has seized on them to brighten up its tarnished image. Though the first years of the government under current president Cristina Kirchner showed promising signs of economic growth and social development, the government was soon mired in corruption scandals and inflation rates spiralling out of control. And though the current debt default the country is suffering through is more the fault of greedy Wall Street speculators than the government itself, the fact that Kirchner goes around spouting CIA conspiracy theories isn’t exactly helping her case.

In the midst of this political quagmire, Randazzo has emerged as one of the few faces of the government doing things right, thanks in large part to his work renovating the trains. And he’s taking full advantage of this image by launching a campaign for president in 2015, when Kirchner is termed out. Though lagging in the polls, his train improvements may give him a boost. They mainly serve suburban Buenos Aires, which unlike the city proper is a key swing vote for the entire country.

Naturally, Randazzo is doing his part to mobilise this bloc, and he’s not above whipping up nationalistic fervour to do so: his new trains all come emblazoned with the bluntly patriotic logo “Argentinian trains”. He’s also got one more important thing going for him: a campaign jingle written as a “cumbia”, a style popular with country’s working class who dominate the Buenos Aires suburbs. The song may not get very far among those with serious musical tastes, but it’s at least good for a few laughs.

However, some of Randazzo’s nationalistic rhetoric may be misplaced. Made completely in China by the state-owned consortium CSR, the trains were installed in Argentina by hundreds of Chinese employees, working out of a specially constructed workshop. And it’s not the only game China’s railway consortiums have going in the region. They’re also working with Brazil to build a freight train line that connects the country’s Atlantic coast with Peru.

Nonetheless, these improvements will be a big improvement for regular commuters in Buenos Aires, even if the jobs it creates don’t all go to locals. The city boasts the largest commuter train network in Latin America and one of the largest in the world: these improvements mean it will no longer be going to waste.

They may even reshape the entire urban area, helping to alleviate demand on the overcrowded housing market in central Buenos Aires. Perhaps in some distant future, the gauchos of Cabred will find it more convenient to commute to desk jobs in the city centre rather than herd cattle.


As EU funding is lost, “levelling up” needs investment, not just rhetoric

Oh, well. Image: Getty.

Regional inequality was the foundation of Boris Johnson’s election victory and has since become one of the main focuses of his government. However, the enthusiasm of ministers championing the “levelling up” agenda rings hollow when compared with their inertia in preparing a UK replacement for European structural funding. 

Local government, already bearing the brunt of severe funding cuts, relies on European funding to support projects that boost growth in struggling local economies and help people build skills and find secure work. Now that the UK has withdrawn its EU membership, councils’ concerns over how EU funds will be replaced from 2021 are becoming more pronounced.

Johnson’s government has committed to create a domestic structural funding programme, the UK Shared Prosperity Fund (UKSPF), to replace the European Structural and Investment Fund (ESIF). However, other than pledging that UKSPF will “reduce inequalities between communities”, it has offered few details on how funds will be allocated. A public consultation on UKSPF promised by May’s government in 2018 has yet to materialise.

The government’s continued silence on UKSPF is generating a growing sense of unease among councils, especially after the failure of successive governments to prioritise investment in regional development. Indeed, inequalities within the UK have been allowed to grow so much that the UK’s poorest region by EU standards (West Wales & the Valleys) has a GDP of 68 per cent of the average EU GDP, while the UK’s richest region (Inner London) has a GDP of 614 per cent of the EU average – an intra-national disparity that is unique in Europe. If the UK had remained a member of the EU, its number of ‘less developed’ regions in need of most structural funding support would have increased from two to five in 2021-27: South Yorkshire, Tees Valley & Durham and Lincolnshire joining Cornwall & Isles of Scilly and West Wales & the Valley. Ministers have not given guarantees that any region, whether ‘less developed’ or otherwise, will obtain the same amount of funding under UKSPF to which they would have been entitled under ESIF.

The government is reportedly contemplating changing the Treasury’s fiscal rules so public spending favours programmes that reduce regional inequalities as well as provide value for money, but this alone will not rebalance the economy. A shared prosperity fund like UKSPF has the potential to be the master key that unlocks inclusive growth throughout the country, particularly if it involves less bureaucracy than ESIF and aligns funding more effectively with the priorities of local people. 

In NLGN’s Community Commissioning report, we recommended that this funding should be devolved to communities directly to decide local priorities for the investment. By enabling community ownership of design and administration, the UK government would create an innovative domestic structural funding scheme that promotes inclusion in its process as well as its outcomes.

NLGN’s latest report, Cultivating Local Inclusive Growth: In Practice, highlights the range of policy levers and resources that councils can use to promote inclusive growth in their area. It demonstrates that, through collaboration with communities and cross-sector partners, councils are already doing sterling work to enhance economic and social inclusion. Their efforts could be further enhanced with a fund that learns lessons from ESIF’s successes and flaws: a UKSPF that is easier to access, designed and delivered by local communities, properly funded, and specifically targeted at promoting social and economic inclusion in regions that need it most. “Getting Brexit done” was meant to free up the government’s time to focus once more on pressing domestic priorities. “Getting inclusive growth done” should be at the top of any new to-do list.

Charlotte Morgan is senior researcher at the New Local Government Network.