Previously, during his visit to China in September, Argentine Transport Minister Randazzo visited the production base of CSR Qingdao Sifang Locomotive and Rolling Stock Co., Ltd., and also went to the headquarters of CNR Corporation, inviting CNR to provide more comprehensive and detailed assistance for Argentina's railway construction and equipment renewal.

　　Randazzo pointed out that half of the procurement amount will be used to purchase 100 new-generation diesel locomotives, 3,500 freight train cars, and other track renewal equipment such as sliding rails and track fasteners, as well as a large number of spare parts and railway materials needed to maintain the existing 2,000 freight cars; the other half will be used to build civil and railway engineering facilities supporting railway transportation. The project will be managed by the Argentine Railway Infrastructure Management Company and contracted to local Argentine companies.

　　Randazzo also stated that the China Development Bank will provide most of the financing for the renovation project, a 15-year loan with an annual interest rate of 7.1%, totaling approximately $2.1 billion. The remaining $370 million will be raised through the issuance of Argentine government bonds.

　　It is reported that Argentine Planning Minister Julio De Vido will soon fly to China to promote infrastructure construction projects and discuss specific cooperation matters for the purchase of railway equipment. This will make him the seventh foreign dignitary to visit China for investment discussions within more than a month after the Third Plenary Session of the 18th CPC Central Committee.

　　China Machinery Engineering Corporation was established in 1978 and is China's first large-scale industrial and trade company. CMEC is a large international comprehensive enterprise with international engineering business and complete equipment business as its core businesses, and international trade business, scientific research and design, and international service business as its main operating businesses.

　　A source from the company revealed: "The company has a history of cooperation with Argentina of about four to five years, mainly exporting equipment such as locomotives, train signals, and tracks."

　　The source from China Machinery Engineering Corporation pointed out that in the second half of 2013, the international economic environment showed clear signs of recovery. The company will rely on the market advantages of international engineering contracting business, actively build a diversified integrated industrial chain, and provide support for the construction of overseas contracted projects.

　　Argentina has the largest diesel multiple unit (DMU) operating network in Central and South America, but its currently operating DMUs are "advanced in years" and struggle to bear the load. Argentina has also accelerated its railway equipment renewal plan, including DMUs.

　　On February 22, 2012, the first working day after the carnival in Argentina, a commuter train collided with a platform and derailed in the capital Buenos Aires, causing 51 deaths and more than 700 injuries. This was the most serious railway accident in Buenos Aires in nearly 82 years.

　　Frequent major accidents angered the public, and the Argentine cabinet had to make decisions to hold those responsible accountable and renew the lines. Subsequently, the Secretary of State for Transport resigned, and the management authority of the Transport Secretariat was transferred. On June 6, 2012, the Argentine government established the Ministry of Interior and Transport, incorporating the former State Secretariat of Transport under the Ministry of Planning, Public Investment and Services into the Ministry of Interior.

　　In January this year, Argentine President Cristina announced the renovation and upgrading of about 7,000 kilometers of railway lines to strengthen the position of railway transport in the national economy. Argentina relies on trucks for 80% of its freight, and railway transport has developed slowly due to long-term lack of investment, accounting for only 8% of the transport system. According to reports, the renewal plan aims to restore the country's industrial competitiveness by enhancing railway capacity, and the resulting demand for supply, maintenance, and expansion will create a large number of social jobs and bring more opportunities to Chinese enterprises.

　　On November 4, Argentine Minister of Interior and Transport Randazzo announced that a contract for the purchase of 81 commuter train cars worth about $90 million had been signed with China. Randazzo stated that the cars procured this time, together with those already under contract, will be used to replace train cars on long-distance lines such as Mitre, Roca, San Martín, and Belgrano in the capital, to improve passenger safety on the Belgrano South commuter line in Buenos Aires. Randazzo said the new trains will arrive in 13 months. He also stated that by the end of 2014, the total number of new cars on these lines is expected to reach 1,000.

　　In September, Argentina's state news agency followed and reported on the visit of Minister of Interior and Transport Randazzo to China. The report said that during the visit, Randazzo visited the production base of CSR Qingdao Sifang Locomotive and Rolling Stock Co., Ltd. and met with the company's leaders, and that the more than 700 locomotive cars purchased from China by the Argentine government for the renewal of the Mitre, Sarmiento, and Roca lines are expected to arrive in Argentina starting in the first half of 2014.

　　The Argentine government signed two locomotive car supply agreements with CSR Group in January and May this year. The first agreement covers the supply of 30 six-car trains for the Mitre line and 25 nine-car trains for the Sarmiento line, with delivery expected in April 2014. The 300 cars under the second agreement will also be delivered in June 2014 for the replacement of trains on the Roca line.

　　During his visit to China, Randazzo also went to the headquarters of CNR Corporation, inviting CNR to provide more comprehensive and detailed assistance for Argentina's railway construction and equipment renewal. In late November, CNR announced the signing of a sales contract with Argentina for DMUs worth nearly $90 million, the first time Argentina has purchased DMUs from China. A CNR source said that this DMU will run on the Belgrano South railway line in Buenos Aires, Argentina, marking that CNR has achieved full entry of DMUs, electric multiple units (EMUs), and subway vehicles into South America.

　　Currently, CNR's railway locomotives, passenger cars, and freight cars have successively entered Argentina. The locomotives and passenger cars for the accelerated passenger line from Os to Bragado, which began operation in October this year, all come from CNR. In neighboring Brazil, EMUs and subway trains provided by CNR will also serve the 2014 World Cup and 2016 Olympics.