One Truck Every 46 Seconds: Mining and Vaca Muerta Have Quantified the Logistics Infrastructure Gap That RIGI Does Not Cover – Trade News | 19/10/26

During the second Federal Logistics Summit, organized by the Federal Investment Council (CFI), governors and representatives from companies including YPF, Tecpetrol, Rio Tinto and Techint warned that the growth of mining and hydrocarbon investments supported by Argentina’s Incentive Regime for Large Investments (RIGI) faces significant constraints due to the country’s logistics infrastructure deficit. Although the regime facilitates the financial viability of projects, it does not address shortcomings in roads, railways, ports, transfer hubs and high-voltage transmission lines needed to ensure their competitiveness. In Vaca Muerta, Río Negro Governor Alberto Weretilneck stated that 95% of the supplies entering and leaving the basin travel along National Routes 151 and 22, both of which are currently congested. In response, the province agreed to take over 530 kilometers of national roads, supported by US$60 million in FONPLATA financing, while construction of the 520-kilometer Vaca Muerta Oil Sur (VMOS) pipeline progresses, with its first oil shipment expected in the first four months of 2027. Meanwhile, Tecpetrol aims to reach production of 70,000 barrels per day at Los Toldos II Este during the first half of 2027, following approval of a US$6.432 billion investment under RIGI. In the mining sector, Jujuy expects to double its installed lithium production capacity from 80,000 to 160,000 tonnes annually, but remains dependent on the deteriorated National Route 52 due to the lack of railway alternatives and the exclusion of the C-14 and C-15 railway branches from the mandatory works planned under the Belgrano Cargas concession. In San Juan, which hosts six of Argentina’s ten copper projects, Governor Marcelo Orrego estimated that mining activity could generate the movement of one heavy-duty truck every 46 seconds over the next 20 years, prompting road infrastructure financing initiatives through bonds, CAF loans and agreements with mining companies. Rio Tinto also highlighted that each lithium export shipment requires five to six additional trips to transport supplies and services, and reported commitments exceeding US$1.8 billion to Argentine suppliers during 2025 and 2026. Participants agreed that while RIGI provides fiscal, customs and foreign-exchange stability for individual projects, a coordinated strategy involving the national government, provinces, companies and multilateral organizations is needed to finance complementary infrastructure and prevent logistics costs from limiting the export potential of Argentina’s mining and hydrocarbon sectors. Link to Article