Railway Nationalisation in Argentina
Encyclopedia
Juan Perón
Juan Domingo Perón was an Argentine military officer, and politician. Perón was three times elected as President of Argentina though he only managed to serve one full term, after serving in several government positions, including the Secretary of Labor and the Vice Presidency...
’s first term of office, the seven British-owned and three French-owned railway companies then operating in Argentina
Argentina
Argentina , officially the Argentine Republic , is the second largest country in South America by land area, after Brazil. It is constituted as a federation of 23 provinces and an autonomous city, Buenos Aires...
, were purchased by the state. These companies, together with those that were already state-owned, where grouped, according to their track gauge and locality, into a total of six state-owned companies which later became divisions of the state-owned holding company Ferrocarriles Argentinos
Ferrocarriles Argentinos
Ferrocarriles Argentinos was a public company that managed the entire Argentine railway system for nearly 45 years. It was formed in 1948 when all the private railway companies were nationalised during Perón's first presidential term, and transformed into the Empresa de Ferrocarriles del Estado...
Background
During the later half of the nineteenth century British and French-owned railway companies had played an important role in the economic development of Argentina, and between 1856 and 1914, the nation's railway network grew to become the largest in Latin America. The foreign investment provided by these companies had helped to transform Argentina from a relatively underdeveloped, rural country, with many isolated communities, into one which was becoming an increasingly prosperous agricultural producer and exporter.The foreign-owned railway companies had developed under the protection of the Argentine ruling elite, who benefited more than most from the country’s increasing prosperity, and were governed from London or Paris for the benefit of their shareholders.
The rail networks of the various companies generally radiated inland from the major ports of Buenos Aires
Buenos Aires
Buenos Aires is the capital and largest city of Argentina, and the second-largest metropolitan area in South America, after São Paulo. It is located on the western shore of the estuary of the Río de la Plata, on the southeastern coast of the South American continent...
and Rosario
Rosario
Rosario is the largest city in the province of Santa Fe, Argentina. It is located northwest of Buenos Aires, on the western shore of the Paraná River and has 1,159,004 residents as of the ....
and where primarily designed to speed the export of agricultural products from the provinces to European markets. The lack of interlinking between the many radial lines meant that the integration of the country’s interior was probably slower than it would have been had domestic needs been a priority.
For the duration of the World War II
World War II
World War II, or the Second World War , was a global conflict lasting from 1939 to 1945, involving most of the world's nations—including all of the great powers—eventually forming two opposing military alliances: the Allies and the Axis...
it had not been possible to import railway equipment or materials which meant that there was an urgent need for track, locomotive and rolling stock renewal by the time nationalisation took place in 1948. Also the railways were beginning to face stiff competition from road transport as improvements in the national road network were made.
By the time the railways were nationalised in 1948, during President Perón's first term in office, the growth in economic nationalism in the country had reached a point where, for many Argentines in search of self-determination, the foreign-owned railways had become symbols of the control of the country’s economy by foreign powers.
Details
Between 1936 and 1939 the once British-owned metre gauge Córdoba CentralCórdoba Central Railway
The Córdoba Central Railway was a British-owned railway company, founded in 1887, that operated a 1960 km metre gauge...
, Argentine Transandine and Central of Chubut
Central of Chubut Railway
The Central Chubut Railway was a British-owned company that built and operated a gauge railway line in the Argentine province of Chubut in the Patagonia region of Argentina at the end of the nineteenth century....
had already been nationalised. As from 1 March 1948 the remaining seven British-owned railway companies in Argentina also became the property of the government (see Table 1). These were the four broad gauge
Broad gauge
Broad-gauge railways use a track gauge greater than the standard gauge of .- List :For list see: List of broad gauges, by gauge and country- History :...
companies: Buenos Aires Great Southern
Buenos Aires Great Southern Railway
The Buenos Aires Great Southern Railway was one of the Big Four broad gauge, , British-owned companies that built and operated railway networks in Argentina...
, Central Argentine
Central Argentine Railway
The Central Argentine Railway was one of the Big Four broad gauge, , British-owned companies that built and operated railway networks in Argentina...
, Buenos and Pacific
Buenos Aires and Pacific Railway
The Buenos Aires and Pacific Railway was one of the Big Four broad gauge, , British-owned companies that built and operated railway networks in Argentina....
and the Buenos Aires Western Railway
Buenos Aires Western Railway
The Buenos Aires Western Railway was one of the Big Four broad gauge British-owned companies that built and operated railway networks in Argentina...
; the two standard gauge
Standard gauge
The standard gauge is a widely-used track gauge . Approximately 60% of the world's existing railway lines are built to this gauge...
companies: Entre Ríos
Entre Ríos Railway
The Entre Ríos Railway was a British-owned railway company that built and operated a railway network in Entre Ríos Province, between the rivers Uruguay and Paraná, in Argentina...
and Argentine North Eastern
Argentine North Eastern Railway
The Argentine North Eastern Railway was a British-owned railway company, founded in 1887, that operated a railway network in the provinces of Entre Ríos, Corrientes and Misiones in Argentina...
; and the Buenos Aires Midland Railway
Buenos Aires Midland Railway
The Buenos Aires Midland Railway was a British-owned railway company which operated in Argentina where it was known as Ferrocarril Midland de Buenos Aires. The company built and operated the line between Estación Puente Alsina and Carhué in Buenos Aires Province...
the only metre gauge
Metre gauge
Metre gauge refers to narrow gauge railways and tramways with a track gauge of . In some African, American and Asian countries it is the main gauge. In Europe it has been used for local railways in France, Germany, and Belgium, most of which were closed down in mid 20th century. Only in Switzerland...
company.
| Railway Company | Ownership | Gauge | Route km | FA Division(s) | |
|---|---|---|---|---|---|
| Buenos Aires Great Southern Buenos Aires Great Southern Railway The Buenos Aires Great Southern Railway was one of the Big Four broad gauge, , British-owned companies that built and operated railway networks in Argentina... |
British | broad | 7889 | Roca Ferrocarril General Roca Ferrocarril General Roca , named after the former Argentine president Julio Argentino Roca, was one of the six state-owned Argentine railway companies formed after President Juan Perón's nationalisation of the railway network in 1948... |
|
| Central Argentine Central Argentine Railway The Central Argentine Railway was one of the Big Four broad gauge, , British-owned companies that built and operated railway networks in Argentina... |
British | broad | 5955 | Mitre Ferrocarril General Bartolomé Mitre Ferrocarril General Bartolomé Mitre , named after the former Argentine president Bartolomé Mitre, was one of the six state-owned Argentine railway companies formed after President Juan Perón's nationalisation of the railway network in 1948... |
|
| Buenos Aires and Pacific Buenos Aires and Pacific Railway The Buenos Aires and Pacific Railway was one of the Big Four broad gauge, , British-owned companies that built and operated railway networks in Argentina.... |
British | broad | 4487 | San Martin Ferrocarril General San Martín Ferrocarril General San Martín , named after the former Argentine general José de San Martín, was one of the six state-owned Argentine railway companies formed after President Juan Perón's nationalisation of the railway network in 1948... |
|
| Buenos Aires Western Buenos Aires Western Railway The Buenos Aires Western Railway was one of the Big Four broad gauge British-owned companies that built and operated railway networks in Argentina... |
British | broad | 3098 | Sarmiento Ferrocarril Domingo Faustino Sarmiento The Ferrocarril Domingo Faustino Sarmiento , named after the former Argentine president, statesman, educator, and author Domingo Faustino Sarmiento, was one of the six state-owned Argentine railway companies formed after President Juan Perón's nationalisation of the Argentine railway network in 1948... |
|
| Entre Ríos Entre Ríos Railway The Entre Ríos Railway was a British-owned railway company that built and operated a railway network in Entre Ríos Province, between the rivers Uruguay and Paraná, in Argentina... |
British | standard | 1300 | Urquiza Ferrocarril General Urquiza Ferrocarril General Urquiza , named after the Argentine general and politician Justo José de Urquiza, was one of the six state-owned Argentine railway companies formed after President Juan Perón's nationalisation of the railway network in 1948... |
|
| Argentine North Eastern Argentine North Eastern Railway The Argentine North Eastern Railway was a British-owned railway company, founded in 1887, that operated a railway network in the provinces of Entre Ríos, Corrientes and Misiones in Argentina... |
British | standard | 1211 | Urquiza Ferrocarril General Urquiza Ferrocarril General Urquiza , named after the Argentine general and politician Justo José de Urquiza, was one of the six state-owned Argentine railway companies formed after President Juan Perón's nationalisation of the railway network in 1948... |
|
| Buenos Aires Midland Buenos Aires Midland Railway The Buenos Aires Midland Railway was a British-owned railway company which operated in Argentina where it was known as Ferrocarril Midland de Buenos Aires. The company built and operated the line between Estación Puente Alsina and Carhué in Buenos Aires Province... |
British | metre | 518 | Belgrano Ferrocarril General Manuel Belgrano Ferrocarril General Manuel Belgrano , named after the Argentine politician and military leader Manuel Belgrano, was one of the six state-owned Argentine railway companies formed after President Juan Perón's nationalisation of the railway network in 1948... |
|
| Rosario y Puerto Belgrano Ferrocarril Rosario y Puerto Belgrano The Ferrocarril Rosario y Puerto Belgrano was a French-owned railway company which operated a broad gauge, , single track line between the cities of Rosario and Puerto Belgrano in Argentina... |
French | broad | ? | Mitre Ferrocarril General Bartolomé Mitre Ferrocarril General Bartolomé Mitre , named after the former Argentine president Bartolomé Mitre, was one of the six state-owned Argentine railway companies formed after President Juan Perón's nationalisation of the railway network in 1948... & Roca Ferrocarril General Roca Ferrocarril General Roca , named after the former Argentine president Julio Argentino Roca, was one of the six state-owned Argentine railway companies formed after President Juan Perón's nationalisation of the railway network in 1948... |
|
| Compañía General de Buenos Aires Ferrocarril Compañía General en la Provincia de Buenos Aires The Ferrocarril Compañía General de Buenos Aires was a French–owned company, formed in 1904, which operated a metre gauge railway network in Argentina.... |
French | metre | ? | Belgrano Ferrocarril General Manuel Belgrano Ferrocarril General Manuel Belgrano , named after the Argentine politician and military leader Manuel Belgrano, was one of the six state-owned Argentine railway companies formed after President Juan Perón's nationalisation of the railway network in 1948... |
|
| Provincial de Santa Fe Ferrocarril Provincial de Santa Fe Ferrocarril Provincial de Santa Fe was a French-owned company that purchased a railway network built by the provincial government of Santa Fe in Argentina on 10 April 1900 and later extended it in the provinces of Chaco and... |
French | metre | ? | Belgrano Ferrocarril General Manuel Belgrano Ferrocarril General Manuel Belgrano , named after the Argentine politician and military leader Manuel Belgrano, was one of the six state-owned Argentine railway companies formed after President Juan Perón's nationalisation of the railway network in 1948... |
The official transfer of ownership, on March 1, of some 24,458 km of British-owned railways (57% of the total railway network) to the Argentine government took place amidst widespread celebrations including a mass demonstration in its support on Buenos Aires
Buenos Aires
Buenos Aires is the capital and largest city of Argentina, and the second-largest metropolitan area in South America, after São Paulo. It is located on the western shore of the estuary of the Río de la Plata, on the southeastern coast of the South American continent...
' Plaza Británica
Torre de los Ingleses
Torre Monumental and before 1982 Torre de los Ingleses is a clock tower located in the barrio of Retiro, Buenos Aires, Argentina. It is situated in the Plaza Fuerza Aérea Argentina next to the Rua San Martín and Avenida del Libertador...
, in front of the Retiro railway terminus.
British shareholders were compensated with the rescision of their US$500 million debt to the Central Bank of Argentina and US$100 million, cash. The cash figure proved controversial, as it had not previously been reported during the negotiations. Pressed on the issue, President Perón explained that the premium was for "sentimental reasons."
Later in 1948 the three French-owned railway companies were also nationalised: the broad gauge Rosario y Puerto Belgrano
Ferrocarril Rosario y Puerto Belgrano
The Ferrocarril Rosario y Puerto Belgrano was a French-owned railway company which operated a broad gauge, , single track line between the cities of Rosario and Puerto Belgrano in Argentina...
and the metre gauge Compañía General de Buenos Aires
Ferrocarril Compañía General en la Provincia de Buenos Aires
The Ferrocarril Compañía General de Buenos Aires was a French–owned company, formed in 1904, which operated a metre gauge railway network in Argentina....
and Provincial de Santa Fe
Ferrocarril Provincial de Santa Fe
Ferrocarril Provincial de Santa Fe was a French-owned company that purchased a railway network built by the provincial government of Santa Fe in Argentina on 10 April 1900 and later extended it in the provinces of Chaco and...
.
These ten foreign-owned companies, along with those previously nationalised, were grouped together, according to their track gauge and locality, into the six state-owned companies Sarmiento
Ferrocarril Domingo Faustino Sarmiento
The Ferrocarril Domingo Faustino Sarmiento , named after the former Argentine president, statesman, educator, and author Domingo Faustino Sarmiento, was one of the six state-owned Argentine railway companies formed after President Juan Perón's nationalisation of the Argentine railway network in 1948...
, Mitre
Ferrocarril General Bartolomé Mitre
Ferrocarril General Bartolomé Mitre , named after the former Argentine president Bartolomé Mitre, was one of the six state-owned Argentine railway companies formed after President Juan Perón's nationalisation of the railway network in 1948...
, Urquiza
Ferrocarril General Urquiza
Ferrocarril General Urquiza , named after the Argentine general and politician Justo José de Urquiza, was one of the six state-owned Argentine railway companies formed after President Juan Perón's nationalisation of the railway network in 1948...
, San Martin
Ferrocarril General San Martín
Ferrocarril General San Martín , named after the former Argentine general José de San Martín, was one of the six state-owned Argentine railway companies formed after President Juan Perón's nationalisation of the railway network in 1948...
, Belgrano
Ferrocarril General Manuel Belgrano
Ferrocarril General Manuel Belgrano , named after the Argentine politician and military leader Manuel Belgrano, was one of the six state-owned Argentine railway companies formed after President Juan Perón's nationalisation of the railway network in 1948...
and Roca
Ferrocarril General Roca
Ferrocarril General Roca , named after the former Argentine president Julio Argentino Roca, was one of the six state-owned Argentine railway companies formed after President Juan Perón's nationalisation of the railway network in 1948...
which were named after distinguished Argentina presidents and national heroes. Later these would become divisions of the state-owned holding company Ferrocarriles Argentinos
Ferrocarriles Argentinos
Ferrocarriles Argentinos was a public company that managed the entire Argentine railway system for nearly 45 years. It was formed in 1948 when all the private railway companies were nationalised during Perón's first presidential term, and transformed into the Empresa de Ferrocarriles del Estado...
.
Aftermath
Argentines saw railway nationalisation as a major step towards the economic independence of their country which had for so long been under the influence of foreign capital. Nationalisation of the railways, the central bank, the telephone system and the docks were part of Peron’s economic recovery scheme for postwar Argentina and had formed part of the first Five Year Plan, announced in October 1946. Later in mass rallies he would refer to railway nationalisation as a victory over foreign imperialism. At the time there was little local opposition, although later it became apparent that, far from stimulating the national economy, nationalisation of the railways together with other foreign companies, contributed to the economic crises that Argentina suffered from the 1950s onwards by adding substantially to national budget deficits (which the Central Bank was forced to finance largely by "printing moneyMoney creation
In economics, money creation is the process by which the money supply of a country or a monetary region is increased due to some reason. There are two principal stages of money creation. First, the central bank introduces new money into the economy by purchasing financial assets or lending money...
"). Argentine Railways, in particular, became the most deficit ridden State enterprise among the numerous ones nationalized by Perón, generating a million US dollars in losses daily by the 1960s, and two million by the 1980s.