As part of the railway privatisation carried out during the presidency of Carlos Menem, BAP was granted a concession to operate the San Martín freight railway services that had been managed by defunct Ferrocarriles Argentinos since 1949.[4] The company was part of the consortium "Industrias Metalúrgicas Pescarmona" (IMPSA) that had been also granted the Urquiza Railway system to be operated by sister company "Ferrocarril Mesopotámico-Urquiza".[5]
During its first years of operation (1994) the company carried 2,439,729 tonnes (2,401,197 long tons; 2,689,341 short tons) of cargo.[2] Nevertheless, in 1998, Industrias Metarlúgicas Pescamona (IMPSA), owner of BAP and Ferrocarril Mesopotámico (that had been granted concession to operate passenger services), announced that they would retire from the rail transport, selling the 73,5% of BAP and the 70,5% of FM to Brazilian company Ferrovía Sul Atlántico (FSA).[6] Nevertheless, the Government of Argentina, owner of the entire railway network granted in concession, did not allow the operation due to the failure of IMPSA to comply with the terms and conditions of the contract of concession, with unpaid charges for over A$ 130 million.[7]
In 2000, the operation of San Martín Railway line was taken over by "ALL Central", a subdivision of Brazilian company América Latina Logística.[8][9]