This paper reviews the performance ofrailway concessions in Latin America over the periodextending from the initial Argentina concessions in1991-1993 through 2004. The bulk of the concessioningprocesses described herein were supported by the World Bank.Now over a decade since rail concessioning in Latin Americabegan, the overall assessment of its results is positive,particularly for freight railways. Railway traffic volumeshave climbed, with some improvements in surface transportmarket share. Although numerous data problems exist,measures of productive efficiency almost uniformly showpost-concession improvements in cargo transport. Effects onrail rates and service levels have generally receivedpositive reviews. Evidence is less extensive for passengerservices, mostly because concessioning was largely limitedto commuter services in Argentina and Brazil and becausesuch concessions must be evaluated in terms of complexsubsidy and regulated pricing regimes, rather than asmarket-based private enterprises. Railway concessions havenot revived uneconomic intercity passenger services, nor hasthere been much effort to do so. iii. While concessioningbrought impressive improvements in labor productivity andother efficiency measures, results have been not quite asdramatic as they are sometimes portrayed. This is in partbecause the initial concessions took place in the volatileArgentina economy, where a precipitous decline in the railsector just prior to concessioning was followed by adramatic post-concession revival. Elsewhere the decline inthe rail sector was not as severe as in Argentina, nor wasthe recovery so rapid.
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