Industry Research Report on the Infrastructure in Argentina.

Value Chain outline

The infrastructure industry in Argentina encompasses a range of activities necessary for the country's functioning, facilitating the production and distribution of goods and services, and providing essential utilities to the population. The value chain involves several key steps, from planning and design to construction, material supply, operation, and maintenance.

Identification and description of each step in the value chain

While a precise, universally defined value chain for "infrastructure" as a single industry isn't explicitly detailed as a step-by-step process from raw material to final service delivery across all types of infrastructure in the provided sources, the information suggests a process that broadly includes:

1. Planning and Design: This initial stage involves identifying infrastructure needs, feasibility studies, project design, and securing necessary permits and authorizations. This is often driven by both public policy (for public works) and private sector demand (for private developments).
2. Financing and Procurement: This step involves securing the necessary capital for projects, which can come from state funds, multilateral or bilateral development resources, private investment, or financial instruments like trusts. For public works, this includes tendering processes for construction contracts.
3. Material and Equipment Supply: This involves the production and supply of construction materials (like cement, aggregates, steel) and specialized equipment needed for infrastructure projects. This step has strong linkages with other industrial value chains.
4. Construction and Execution: This is the physical building phase of infrastructure projects, carried out by construction companies and contractors. It includes site preparation, building structures, installing networks, and project management. This step is a significant part of the overall value chain.
5. Operation and Maintenance: Once constructed, infrastructure assets require ongoing operation and maintenance to ensure their functionality and longevity. This includes managing services (e.g., transport, utilities) and performing repairs and upgrades.
6. Support Activities: These activities underpin the primary steps and include areas like infrastructure management, human resources, technology adoption, and procurement.

Identification and description of segments for each step of the value chain.

Based on the information provided, the infrastructure industry can be segmented by the type of infrastructure being developed and operated, and by the nature of the investor (public vs. private). While a strict segmentation per value chain step is not explicitly given, the sources discuss segments within the broader construction/infrastructure context:

• Construction/Execution Segments (by type of work):
  • Vial Works: Construction and maintenance of roads and highways.
  • Energy Infrastructure: Projects related to electricity generation (thermal, hydro, nuclear, renewables), transmission lines, gas pipelines, and oil pipelines.
  • Water and Sanitation Infrastructure: Construction and maintenance of networks for potable water and sewage.
  • Transport Infrastructure: Includes airports, railways, and ports, alongside road infrastructure.
  • Edification/Building Infrastructure: Construction of buildings for various purposes, including residential, commercial, industrial, health, and education facilities. This includes both public and private buildings.
  • Mining Infrastructure: Specific infrastructure requirements to support mining operations, including access roads, rail transport, energy supply (high voltage lines, gas pipelines), and export ports.
  • Communications Infrastructure: Networks for fixed and mobile telephony, fiber optics, and television.
• Material and Equipment Supply Segments:
  • Cement and Concrete: Production and supply of cement and ready-mix concrete.
  • Steel and Metallurgical Products: Supply of steel bars, structures, and other metal components.
  • Other Building Materials: Includes aggregates, bricks, asphalt, glass, etc..
  • Specialized Equipment: Manufacturing and supply of heavy machinery, turbines, pumps, valves, etc., often involving imports for complex projects.
• Operation and Maintenance Segments:
  • Transport Operations: Management and operation of transport networks (e.g., railways, subways, airports, highways).
  • Utility Operations: Management and operation of water, sewage, and energy distribution networks.

List of types of players in each segment

Across the different segments and steps of the value chain, several types of players are involved:

• Government/Public Sector Entities:
  • National, Provincial, and Municipal Governments: Act as key demanders of public works and infrastructure.
  • Ministry of Public Works (MOP): Responsible for planning, financing, and executing public infrastructure projects.
  • State-owned Enterprises: Companies like YPF (energy) and Trenes Argentinos Cargas (rail cargo) play significant roles in specific infrastructure sectors.
  • Regulatory Bodies: Agencies that set standards and oversee infrastructure development and operation.
• Private Sector Companies:
  • Construction Companies/Contractors: Responsible for the physical execution of projects. These range from large national players to smaller, specialized firms. Joint ventures between companies are common for large projects.
  • Engineering and Design Firms: Provide planning, design, and technical consulting services.
  • Material Suppliers: Companies that produce and supply raw materials and manufactured goods for construction.
  • Equipment Manufacturers and Suppliers: Provide the machinery and specialized components required for projects.
  • Infrastructure Operators: Companies (both public and private, or mixed) that manage and operate completed infrastructure assets, often under concessions (e.g., airport operators, highway concessionaires, utility companies).
  • Developers: Companies that initiate and manage private infrastructure and building projects.
  • Financial Institutions and Investors: Banks, investment funds, and philanthropic capital that provide funding for projects.
• International Organizations: Provide financing and technical assistance for infrastructure projects.

Detailed description of the main activities within each segment.

Based on the available information, the main activities within the segments can be described as follows:

• Construction/Execution:
  • Vial Works: Design, construction, paving, and maintenance of new roads, highways, bridges, and overpasses. Activities include earthmoving, asphalt laying, bridge building, and road signage.
  • Energy Infrastructure: Construction of power plants (thermal, hydro, wind, solar, nuclear), installation of transmission and distribution lines, building of gas and oil pipelines, and construction of associated facilities like pumping and compression stations.
  • Water and Sanitation Infrastructure: Excavation and laying of pipes for potable water and sewage networks, construction of treatment plants, pumping stations, and reservoirs.
  • Transport Infrastructure (Air, Rail, Port): Construction and expansion of airport terminals, runways, and control towers; laying and maintenance of railway tracks; construction and improvement of port facilities, docks, and terminals.
  • Edification/Building Infrastructure: Construction of residential buildings (houses, apartments), commercial properties (offices, retail spaces), industrial facilities (factories, warehouses), and public buildings (hospitals, schools). Activities include site preparation, foundation work, structural construction, installation of utilities, and finishing.
  • Mining Infrastructure: Building access roads and railways to mining sites, constructing energy supply lines (high voltage lines, gas pipelines), and developing port facilities for mineral export.
  • Communications Infrastructure: Installation of fiber optic cables, construction of cell towers, and deployment of network equipment..
• Material and Equipment Supply:
  • Cement and Concrete: Quarrying raw materials, clinker production, grinding cement, mixing and transporting ready-mix concrete.
  • Steel and Metallurgical Products: Mining iron ore, steel production, rolling and shaping steel products (rebar, beams).
  • Other Building Materials: Extraction of aggregates, manufacturing of bricks, production of asphalt, glass manufacturing.
  • Specialized Equipment: Design, manufacturing, import, and distribution of heavy construction machinery (excavators, cranes), turbines for power plants, pumps, valves, and other specialized industrial components.
• Operation and Maintenance:
  • Transport Operations: Managing traffic flow on roads and railways, operating trains and subways, managing airport operations and air traffic control, handling cargo and passenger flow at ports and airports. This includes scheduling, ticketing, and security.
  • Utility Operations: Managing the flow and distribution of water, gas, and electricity; monitoring network performance; responding to outages and emergencies; billing and customer service.
  • Maintenance: Routine inspection, repair, and rehabilitation of infrastructure assets to ensure safety and functionality across all segments (roads, bridges, pipelines, buildings, etc.).

List examples of key players with detailed profiles.

Based on the provided information, here are some key players in the Argentine infrastructure industry value chain:

• Pan American Energy (PAE): (Profile provided in the initial context) Key player in the energy infrastructure segment, particularly in oil and gas exploration, production, and transport. Involved in the Vaca Muerta to Punta Colorada oil pipeline.
• YPF: (Profile provided in the initial context) State-owned energy company, the largest oil and gas producer. Involved across the energy value chain, including major pipeline projects (Vaca Muerta). Its subsidiary AESA is also a significant player in construction and engineering for the energy sector.
• Loma Negra: (Profile provided in the initial context) Leading cement producer, a crucial supplier of materials for the construction step across all infrastructure segments. Also involved in logistics through its railway line.
• Corporación América Airports (CAAP): (Profile provided in the initial context) Major player in the transport infrastructure operation segment, operating airports across Argentina under concession agreements. Involved in airport infrastructure development and management.
• Grupo Roggio (Benito Roggio e Hijos): (Profile provided in the initial context) Diversified group with significant presence in construction (particularly road works), transport operation (subway, railways), environmental services, and water utilities. Key player in public works and concessions.
• Rovella Carranza: (Profile provided in the initial context) Significant construction company, particularly prominent in road works and other large-scale construction projects. Has a substantial project backlog.
• IMPSA: (Profile provided in the initial context) Specializes in manufacturing and supplying large-scale equipment for energy infrastructure (hydroelectric, wind, nuclear) and industrial projects. Involved in the supply step of the value chain.
• Sacde: (Profile provided in the initial context) Construction company part of the Pampa Energía group, heavily involved as a contractor in major energy infrastructure projects, including pipelines from Vaca Muerta.
• AESA: (Profile provided in the initial context) YPF subsidiary focusing on engineering and construction services, particularly for energy infrastructure. Involved in the construction of facilities like pumping stations for major pipelines.
• Techint: While not profiled in the initial list, Techint is repeatedly mentioned as a major player in large infrastructure projects, particularly in the energy sector, often partnering with companies like Sacde on significant pipelines. Their activities align with the Construction/Execution segment and potentially Material Supply (given their steel production capabilities).
• CAMARCO (Cámara Argentina de la Construcción): Represents construction companies and provides insight into the sector's challenges and activities, highlighting the collective impact and concerns of players in the Construction/Execution segment.

Show estimates of volumes and sizes of each step in the value chain.

Estimating the exact volumes and sizes for each step of the value chain across the entire Argentine infrastructure industry based on the provided snippets is challenging, as the data is fragmented and focuses on specific aspects or recent performance trends rather than a comprehensive breakdown of the entire value chain. However, the following information provides some indication of scale:

• Overall Infrastructure Investment (Public):
  • The government announced a significant reduction in public investment in infrastructure for 2024.
  • The budget for 2024 projected 4,107 projects valued at 5.30 trillion pesos, with the Ministry of Public Works allocated 1.5 trillion pesos. However, this represented a reduction in real terms compared to previous years.
  • Real direct investment by the national government in the provinces fell by 73.4% in 2024, reaching its lowest level in two decades (since 2004).
  • Infrastructure constructions represented 62% of real direct investment in 2024 and saw a real interannual fall of 73.9%.
  • In the first quarter of 2025, national government investment in public works saw a 101.8% increase compared to the very low base of the previous year, but still remained 53% below the average since 1995.
• Construction Activity (Indicator):
  • The synthetic indicator of construction activity (ISAC) showed a decrease of 21.7% in January 2024 compared to the same month in 2023. Activity also fell in December (12.2%) and November (2.1%).
  • The construction market in Argentina was estimated to be worth USD 13.57 trillion globally in 2024 (this figure seems unusually high and might refer to a global or Latin American market value, or potentially a different metric given other figures). The Latin American construction market was estimated at USD 675.99 billion in 2024, projected to reach USD 842.52 billion in 2029. Specific Argentina market size in USD for 2024/2025 within this context is not clearly provided.
• Segments:
  • Energy (Oil and Gas Production - Upstream): Non-conventional oil production was over 410 thousand barrels per day in October 2024, representing 55% of Argentina's total oil production, with a projection of 1.5 million bpd from Vaca Muerta by 2030. Non-conventional gas production is projected to reach 230 million cubic meters per day by 2030. These figures indicate the scale driving investment in associated infrastructure like pipelines and processing facilities.
  • Energy (Electricity Generation): In 2012, 70.58% of electricity came from thermal generation, 24.15% from hydraulic, and 5.25% from nuclear. While dated, this provides a snapshot of the generation mix requiring different infrastructure types.
  • Transport (Airports): Corporación América Airports handled 32 million passengers annually in Argentina (cited in 2018) across 36 airports.
  • Transport (Railways - Passengers): Metrovías (part of Grupo Roggio) handled 324 million passengers in 2016.
  • Material Supply (Cement): Loma Negra dispatched 6.4 million tons of cement in 2023.
• Player-Specific Volumes/Sizes (Examples):
  • PAE: Produces 247 MMBOED (Million Barrels of Oil Equivalent per Day). Operates over 735 service stations.
  • Loma Negra: Production capacity of 7.5 million tons of cement and 700 thousand cubic meters of concrete per year (as of 2005). Employed 2,906 people as of September 2024.
  • Rovella Carranza: Had a backlog of $131,011 million pesos as of May 2023, equivalent to USD 526 million at that time.
  • IMPSA: Produced its 200th turbine by 2019. Employs around 700-750 people.

Value Chain Summary Table

Value Chain Step	Key Segments	Types of Players	Main Activities	Volume/Size Estimates (where available)
Planning and Design	All infrastructure types (Vial, Energy, Water, Transport, Edification, Mining, Communications)	Engineering & Design Firms, Government Entities, Developers	Identifying needs, feasibility studies, project design, securing permits.	Not specified in provided snippets.
Financing & Procurement	All infrastructure types	Government Entities, Private Investors, Banks, Multilateral/Bilateral Institutions	Securing funds, tendering contracts, managing financial instruments.	Public investment fell significantly in 2024. USD 15.2 billion in potential investments under RIGI as of April 2025.
Material & Equipment Supply	All infrastructure types	Material Producers (Cement, Steel, etc.), Equipment Manufacturers/Suppliers, Importers	Extracting raw materials, manufacturing construction materials, producing and supplying specialized machinery and components.	Loma Negra dispatched 6.4 million tons of cement in 2023.
Construction & Execution	Vial Works, Energy Infra, Water & Sanitation, Transport Infra, Edification, Mining Infra, Communications Infra	Construction Companies (Large, Small, JVs), Specialized Contractors, Government Entities	Physical building of infrastructure assets, site preparation, installation of networks and structures, project management.	ISAC fell 21.7% in Jan 2024. Construction contributed 62% of real direct public investment in 2024, which fell 73.9%. Rovella Carranza backlog ~USD 526M (May 2023).
Operation & Maintenance	Energy Infra, Water & Sanitation, Transport Infra, Communications Infra	Infrastructure Operators (Public, Private, Mixed)	Managing service delivery, network monitoring, repairs, upgrades, and routine maintenance.	CAAP handled 32M passengers/yr in Argentina (2018). Metrovías handled 324M passengers (2016).
Support Activities	All infrastructure types	Consulting Firms, Technology Providers, HR Services, Logistics Companies	Infrastructure management, HR, technology development, procurement, logistics, legal, administrative support.	Not specified in provided snippets.

Examples of Main Players

• Pan American Energy (PAE): PAE is a vertically integrated energy company with significant exploration and production operations in Argentina's key hydrocarbon basins, including the unconventional Vaca Muerta formation. They are also involved in refining and fuel distribution. Their participation in the Vaca Muerta Oil Sur pipeline project demonstrates their crucial role in developing export-oriented energy infrastructure. PAE is a major producer of both oil and gas, contributing significantly to Argentina's energy output.
• YPF: As the state-owned energy champion, YPF is the largest player in Argentina's oil and gas sector, covering the entire value chain from exploration to retail. YPF is at the forefront of developing Vaca Muerta, a critical source for future energy production and exports. Their involvement, often through subsidiaries like AESA and joint ventures, in large-scale projects such as the Vaca Muerta pipelines underscores their central role in national infrastructure development.
• Loma Negra: This company is the dominant force in Argentina's cement market, a fundamental material supplier for all construction and infrastructure projects. With multiple plants and a significant logistics network including a railway, Loma Negra's operations directly impact the supply chain efficiency for construction. Despite recent market challenges due to reduced public works, Loma Negra remains essential for both large infrastructure projects and private construction.
• Corporación América Airports (CAAP): Operating a large network of airports across Argentina under government concessions, CAAP is a prime example of a private operator in the transport infrastructure segment. Their business relies on both aeronautical services and commercial activities within airports. Their historical passenger volumes highlight the scale of the air transport infrastructure they manage and develop.
• Grupo Roggio (Benito Roggio e Hijos): This conglomerate has a long history in Argentina's infrastructure sector. Its construction arm, Benito Roggio e Hijos, is a major contractor for public works, particularly roads. The group also operates significant urban transport systems (Metrovías) and provides essential services like water and environmental management, showcasing their broad involvement across different infrastructure types and operational phases.

Volumes and Sizes

Quantifying the exact volumes and sizes for every player and segment in the Argentine infrastructure value chain for 2024/2025 is not fully possible based on the provided information. However, the available data provides some key indicators:

• Overall Investment Decline: Real direct public investment in infrastructure by the national government in the provinces plummeted by 73.4% in 2024 compared to the previous year, reaching the lowest point in two decades. This drastically reduced the volume of publicly funded projects. Construction within this public investment fell by 73.9%.
• Public Investment Figures: The 2024 budget allocated 5.30 trillion pesos for 4,107 projects, with 1.5 trillion pesos for the Ministry of Public Works, though these figures represent a real decrease.
• Private Construction: While public works have seen a severe decline, private construction, particularly in areas like mining, oil and gas, and real estate (driven by measures like capital blanqueo and mortgage credits), has been a relative source of support for the sector in 2024.
• Construction Activity Index: The INDEC's ISAC showed a significant contraction of 21.7% in January 2024 year-on-year.
• Employment: The construction sector lost over 120,000 jobs between June 2023 and June 2024, with some sources citing a loss of 80,000 formal jobs in a year by October 2024. Around 4,000 construction firms ceased activity in a year by October 2024.
• Market Value (Contextual): The Latin American construction market was estimated at USD 675.99 billion in 2024, projected to grow to USD 842.52 billion by 2029. While this covers the region, it provides a scale for the overall market in which Argentina participates.
• Key Player Volumes:
  • PAE: Produces 247 MMBOED. Operates over 735 service stations.
  • YPF: Largest oil and gas producer in Argentina. Involved in Vaca Muerta where non-conventional oil production exceeded 410 thousand bpd in Oct 2024.
  • Loma Negra: Dispatched 6.4 million tons of cement in 2023.
  • Corporación América Airports: Handled 32 million passengers annually in Argentina (2018 data).
  • Rovella Carranza: Had a project backlog worth $131,011 million pesos (USD 526 million) as of May 2023.

Market shares for specific segments are not detailed in the provided snippets, making it difficult to provide precise figures on individual player dominance beyond descriptive terms like "leading" or "largest" (e.g., Loma Negra in cement, YPF in oil/gas production).

References

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