Transport Secretary Juan Pablo Schiavi admitted that the subsidies to the transport sector are "inefficient" and said the government is planning to introduce changes in the administration of national railway lines.

According to private reports, the government is planning to earmark more than 20 billion dollars for railway lines in the country, most of which are managed by private companies. Schiavi said during a conference on transport policies in Mar del Plata that the subsidies funnelled to the sector "are neither efficient nor federal."

His comments came as different provinces are demanding the reintroduction of long-distance passenger trains, many of which stopped operating during the privatization wave of the 90s. Transport agencies of the provinces of Chaco, Corrientes, Formosa and Misiones have recently filed writs to the national administration requesting that the government improve and increase the funds to the Grán Capitán service, which links the city of Buenos Aires with the northeastern provinces of the country.

Schiavi said he would meet with experts in public policies and the companies in the sector to analyze measures to improve the service. In 2004, ex-president Néstor Kirchner said the reconstruction of national passenger and freight railways was one of the priorities of his administration.

Schiavi's predecessor, Ricardo Jaime resigned in July after he was accused of embezzlement and irregularities in his administration.

"We most develop a sustainable policy to contemplate the interest of the users, the companies and also workers of the transport sector, addressing the technological challenge," Schiavi said as he lectured the conference.