Argentina has secured a $326m loan from Corporación Andina de Fomento (CAF) to revamp its rail freight network.

The loan will be used for the Belgrano Cargas freight rail network and will finance repairs to rail lines in the provinces of Chaco and Santiago del Estero, as well as for the purchase of signalling equipment, rail cars and locomotives.

The country is also planning to restore the ageing Belgrano Cargas railway that operates on 10,000km of track in 13 provinces.

The network passes through Argentina’s key farm and mining regions and could also be used to ship freight to and from Chile and Bolivia.

Freight presently shipped on the rail line includes copper, corn, minerals, petroleum products, rice, soya beans and vegetable oil.