Transporte ferroviario y mercado agropecuario en Chile, 1930-1960

The aim of this study is to assess the importance of railway freight on the transportation of agricultural products in Chile between 1930 and 1960, as well as the influence of railway fares on the organization of the agricultural market. Different sources from Ministries, Government institutions, statistics and the regional press, allow the reconstruction of the volume of agricultural freight transported by train, especially between the centre and the south of the country, while maritime and road transportation were secondary. Railway transportation played a key role in structuring the agricultural market. Low railway fares favoured low final prices and the availability of agricultural products. Due to the government and producers’ pressure, the State Railway Company kept freight prices low despite the fact that this decision highly affected its income and performance. However, if the company wanted to meet its employees’ wage expectations and renew its equipment and infrastructure, fare increases were required. Thus, railway fares became a political and economical issue that impacted the agricultural situation. This paper shows that the policy of keeping railway fares low was not only preserved but deepened during the period, especially for basic products. As a consequence the State was able to subordinate the agricultural market to industrial and urban development. However such a policy harmed the capacity and efficiency of the State Railway Company, an evolution that had a negative impact on agriculture.