Argentina has expropriated a cargo railway concession and a tourist train concession from Brazil's All America Latina Logistica SA citing noncompliance with contractual agreements.

ALL, based in Curitiba, Brazil, incurred severe contract violations by failing to invest and accumulating fines worth 30 % of the contract, Interior and Transport Minister Florencio Randazzo said yesterday in Buenos Aires.

ALL operated the railways between Mendoza province and the Rosario port as well as the railway between Misiones province and the Buenos Aires port since 1999.

Argentina won't hesitate to nationalize other railway concessions if companies don't improve services, Randazzo said.

Railways were first nationalized during the first Juan Domingo Peron administration in the late 1940s. President Carlos Saul Menem granted a few railway concessions in the 1990s.

América Latina Logística (ALL) is a Brazilian logistic company, mainly focused in the railway line logistics in Brazil, being the largest company in Latin America in this segment, the company provides also transportation services such as logistics, intermodal transport, port operations, movement and storage ofmerchandise, administration of storage facilities and general storage. It is also involved in lease of railroad equipment to third parties, and offers road transport services in Brazil through América Latina Logística Intermodal S.A.