President Kirchner rescinds concessions of two major rail lines

Argentine President Nestor Kirchner rescinded a private company`s concession to operate two major rail lines on Tuesday, a week after commuters rioted over delays at the main station in Buenos Aires.

"We will keep all the workers on the job and ticket prices will remain the same," Planning Minister Julio De Vido said at a news conference announcing the temporary state takeover of the Roca and Belgrano lines, which serve Buenos Aires 41% train commuters from some of the poorest and most populous suburbs.

De Vido said the state would try to end delays and improve service for the roughly 300,000 passengers who ride the rails each day. He did not give details about a more permanent future for the lines.

A train breakdown on May 15 forced rush-hour cancellation of all service at the Constitucion station, angering passengers who set fires, destroyed ticket booths, looted shops and threw rocks at police. Riot police responded with rubber bullets and tear gas, arresting 16 people. At least twenty-one people were injured.

Commuters describe Argentine train service as unsafe, unreliable and overcrowded.

De Vido said private operator Trenes Metropolitano had failed to fulfil obligations under its contract with the state, which owns the rail lines.

There was no immediate reaction from the company but Metropolitano CEO Sergio Taselli rejected allegations that the company failed to make repairs and provide timely service.

``They have dismantled all our trains` structures`` President Nestor Kirchner said at a rally in Buenos Aires province. ``I`ll not hesitate to take all the decisions I must take.``

Kirchner voided a similar contract with Metropolitano in 2004 for the San Martin line, which runs from downtown Buenos Aires to the northern outskirts, saying the company failed to provide adequate security and service. He has criticized the concession of state assets in the 1990`s, saying they only benefited private companies and failed to improve service.

Kirchner last year also revoked the 30-year contract of French Suez SA to supply water and sewage treatment and in 2003 took control of the national postal service as the government said the company had failed to pay semi-annual royalties.

Metropolitano, which has held concessions for the Belgrano and Roca lines since 1994, carries 11.5 million passengers a month to 102 stations.