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56-537: The line is currently operated by State-owned company Operadora Ferroviaria Sociedad del Estado (SOFSE) after the Government of Argentina rescinded the contract with former operator Corredores Ferroviarios in March 2015. Passenger numbers in 2015 beat historical records for the line, which has been largely attributed to the newer rolling stock and refurbished stations. The first line had been built and operated by

112-505: A private company ) is a company whose shares and related rights or obligations are not offered for public subscription or publicly negotiated in their respective listed markets. Instead, the company's stock is offered, owned, traded or exchanged privately, also known as " over-the-counter ". Related terms are unlisted organisation , unquoted company and private equity . Private companies are often less well-known than their publicly traded counterparts but still have major importance in

168-424: A distinct legal structure, with financial and developmental goals, like making services more accessible while earning profit (such as a state railway). They can be considered as government-affiliated entities designed to meet commercial and state capitalist objectives. The terminology around the term state-owned enterprise is murky. All three words in the term are challenged and subject to interpretation. First, it

224-661: A public objective. For that reason, SOEs primarily operate in the domain of infrastructure (e.g., railway companies), strategic goods and services (e.g., postal services, arms manufacturing and procurement), natural resources and energy (e.g., nuclear facilities, alternative energy delivery), politically sensitive business, broadcasting, banking, demerit goods (e.g., alcoholic beverages ), and merit goods (healthcare). SOEs can also help foster industries that are "considered economically desirable and that would otherwise not be developed through private investments". When nascent or 'infant' industries have difficulty getting investments from

280-495: A regular enterprise, state-owned enterprises are typically expected to be less efficient due to political interference, but unlike profit-driven enterprises they are more likely to focus on government objectives. In Eastern Europe and Western Europe , there was a massive nationalization throughout the 20th century, especially after World War II . In the Eastern Bloc , countries adopted very similar policies and models to

336-419: Is a business entity created or owned by a national or local government, either through an executive order or legislation. SOEs aim to generate profit for the government, prevent private sector monopolies, provide goods at lower prices, implement government policies, or serve remote areas where private businesses are scarce. The government typically holds full or majority ownership and oversees operations. SOEs have

392-562: Is a viable argument for SOEs is debated. SOEs are also frequently employed in areas where the government wants to levy user fees , but finds it politically difficult to introduce new taxation. Next, SOEs can be used to improve efficiency of public service delivery or as a step towards (partial) privatization or hybridization. SOEs can also be a means to alleviate fiscal stress, as SOEs may not count towards states' budgets. Compared to government bureaucracy, state owned enterprises might be beneficial because they reduce politicians' influence over

448-764: Is approximately 70% of total employment. State-owned enterprises are thus a major factor behind Belarus's high employment rate and a source of stable employment. In most OPEC countries, the governments own the oil companies operating on their soil. A notable example is the Saudi Arabian national oil company , Saudi Aramco , which the Saudi government bought in 1988, changing its name from Arabian American Oil Company to Saudi Arabian Oil Company. The Saudi government also owns and operates Saudi Arabian Airlines , and owns 70% of SABIC as well as many other companies. China's state-owned enterprises are owned and managed by

504-542: Is debatable what the term "state" implies (e.g., it is unclear whether municipally owned corporations and enterprises held by regional public bodies are considered state-owned). Next, it is contestable under what circumstances a SOE qualifies as "owned" by a state (SOEs can be fully owned or partially owned; it is difficult to determine categorically what level of state ownership would qualify an entity to be considered as state-owned since governments can also own regular stock , without implying any special interference). Finally,

560-617: Is highlighted in the predominant local terminology, with SOEs in Canada referred to as a " Crown corporation ", and in New Zealand as a " Crown entity ". The term " government-linked company " (GLC) is sometimes used, for example in Malaysia , to refer to private or public (listed on a stock exchange) corporate entities in which the government acquires a stake using a holding company . The two main definitions of GLCs are dependent on

616-571: Is often found in former Eastern Bloc countries to differentiate from former state-owned enterprises , but it may be used anywhere in contrast to a state-owned or a collectively owned company. In the United States , a privately held company refers to a business entity owned by private stakeholders, investors, or company founders, and its shares are not available for public purchase on stock exchanges. That contrasts with public companies, whose shares are publicly traded, which allows investing by

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672-728: The Corporations Act 2001 requires publicly traded companies to file certain documents relating to their annual general meeting with the Australian Securities and Investments Commission (ASIC). There is a similar requirement for large proprietary companies, which are required to lodge Form 388H to the ASIC containing their financial report. In the United States, private companies are held to different accounting auditing standards than public companies, overseen by

728-516: The Buenos Aires and Pacific Railway , a British-owned company. The original projects included a railway to connect Argentina and Chile , but instead the BAPR focused on getting access to Buenos Aires . When the Government of Argentina granted concession to build the line, the company opened a 100-km length Mercedes − Palermo segment. On 13 February 1947, the Government of Argentina acquired

784-399: The Buenos Aires and Pacific Railway , changing its name to Ferrocarril General San Martín one year later when the entire Argentine railway network nationalised by Juan Perón 's administration. Immediately after nationalisation, there was a project to electrify the line, however this never came to fruition. During the 1960s the line was restructured, renewing its rolling stock. Therefore,

840-478: The Corporations Act 2001 limits a privately held company to 50 non-employee shareholders. A privately owned enterprise is a commercial enterprise owned by private investors, shareholders or owners (usually collectively , but they can be owned by a single individual ), and is in contrast to state institutions, such as publicly owned enterprises and government agencies . Private enterprises comprise

896-615: The Government of Argentina rescinded the contracts signed with both companies on March 2, 2015. The contract terms specified that the concession could be cancelled with no right to claim compensation. The agreements had been signed in February 2014, committing Argentren and Corredores Ferroviarios to operate the lines. In December 2014, plans were made between the Ministry of the Interior and Transport and City of Buenos Aires to elevate

952-550: The Government of Argentina . In spite of the large government subsidies received by TMS, a serious decline in the standard of their rail services has led to the original concession being revoked and the service was taken over by the consortium UGOFE . With the line managed by UGOFE, several projects were announced to improve the San Martín line services, with an estimated 36 million passengers transported yearly and which were seeing an annual increment of 15% in ridership. In 2008

1008-634: The Roca Line , with the difference that electric locomotives would be used to pull the existing carriages instead of purchasing new Japanese Electric Multiple Units like on the Roca Line. The collapse of the Soviet Union and economic problems in Argentina slowed the plans down and the privatisation of the railways in 1993 ultimately led to its cancellation. The electrification of the line

1064-715: The State-owned Asset Supervision and Administration Commission (SASAC) . China's state-owned enterprises generally own and operate public services, resource extraction or defense. As of 2017 , China has more SOEs than any other country, and the most SOEs among large national companies. China's SOEs perform functions such as: contributing to central and local governments revenues through dividends and taxes, supporting urban employment, keeping key input prices low, channeling capital towards targeted industries and technologies, supporting sub-national redistribution to poorer interior and western provinces, and aiding

1120-608: The private company limited by shares in the United Kingdom (abbreviated Ltd ) or unlimited company and the proprietary limited company (abbreviated Pty Ltd ) or unlimited proprietary company (abbreviated Pty ) in South Africa and Australia . In India , private companies are registered by the Registrar of Companies , which is under the Ministry of Corporate Affairs . Indian private companies must contain

1176-408: The private sector of an economy. An economic system that 1) contains a large private sector where privately run businesses are the backbone of the economy, and 2) a business surplus is controlled by the owners, is referred to as capitalism . This contrasts with socialism , where the industry is owned by the state or by all of the community in common. The act of taking assets into the private sector

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1232-534: The steam locomotives of San Martín line were replaced by diesel ones. The old coaches made of wood were also replaced by new wagons manufactured in Fiat Ferroviaria (then Materfer ) factory in Córdoba Province . In the 1970s the modernisation continued, renewing signals and rail tracks . In addition, most of the stations were remodelled while the orange colour was adopted to identify

1288-535: The Government of Argentina announced that the electrification using overhead lines for the whole system was to be started in June 2008. The project also included a new maintenance yard, new tracks for the entire line with all level road crossings to be eliminated and replaced with bridges and tunnels. . New rolling stock consisting of 24 diesel-electric CSR SDD7 locomotives and 160 coaches arrived from China to serve

1344-823: The Minister of Finance II, the Minister in the Prime Minister's Department in charge of the Economic Planning Unit, the Chief Secretary to the Government, Secretary General of Treasury and the heads of each of the GLICs (the Employees Provident Fund, Khazanah Nasional Berhad , Lembaga Tabung Angkatan Tentera (the armed forces pension fund), Lembaga Tabung Haji and Permodalan Nasional Berhad . Khazanah Nasional Berhad provided

1400-686: The Private Company Counsel division of the Financial Accounting Standards Board . Researching private companies and private companies' financials in the United States can involve contacting the secretary of state for the U.S. state of incorporation (or for LLC or partnership, state of formation), or using specialized private company databases such as Dun & Bradstreet . Other companies, like Sageworks , provide aggregated data on privately held companies, segmented by industry code. By contrast, in

1456-1019: The USSR. Governments in Western Europe, both left and right of centre, saw state intervention as necessary to rebuild economies shattered by war. Government control over natural monopolies like industry was the norm. Typical sectors included telephones , electric power , fossil fuels , iron ore , railways , airlines , media , postal services , banks , and water . Many large industrial corporations were also nationalized or created as government corporations, including, among many others: British Steel Corporation , Equinor , and Águas de Portugal . A state-run enterprise may operate differently from an ordinary limited liability corporation. For example, in Finland, state-run enterprises ( liikelaitos ) are governed by separate laws. Even though responsible for their own finances, they cannot be declared bankrupt ;

1512-502: The United Kingdom, all incorporated companies are registered centrally with Companies House . Privately held companies also sometimes have restrictions on how many shareholders they may have. For example, the U.S. Securities Exchange Act of 1934 , section 12(g), limits a privately held company, generally, to fewer than 2000 shareholders, and the U.S. Investment Company Act of 1940 , requires registration of investment companies that have more than 100 holders. In Australia, section 113 of

1568-605: The United States but not generally in the United Kingdom , the term is also extended to partnerships , sole proprietorships or business trusts . Each of those categories may have additional requirements and restrictions that may impact reporting requirements, income tax liabilities, governmental obligations, employee relations, marketing opportunities, and other business obligations and decisions. In many countries, there are forms of organization that are restricted to and are commonly used by private companies, for example,

1624-407: The early 1990s by President Carlos Menem , Ferrocarriles Argentinos ceased to operate metropolitan services. A new State-owned transitional company, Ferrocarriles Metropolitanos S.A. , was created to operate those services until they were privatised. On 1 March 1994, private company Metropolitano (TMS) took over the line, which it operated until 7 January 2005, when the contract was revoked by

1680-426: The entire line using a new viaduct from La Paternal station to the existing viaduct at Palermo station, together with a similar project for the belgrano Sur Line . Both governments cited benefits such as the improvement of road traffic and rail frequencies as reasons for building the 4.9 km (3.0 mi) viaduct. The section from Retiro to Villa del Parque (set as provisional terminus while works were in progress)

1736-507: The form of Public Sector Undertakings (PSUs). The Malaysian government launched a GLC Transformation Programme for its linked companies and linked investment companies ("GLICs") on 29 July 2005, aiming over a ten-year period to transform these businesses "into high-performing entities". The Putrajaya Committee on GLC High Performance ("PCG"), which oversaw this programme, was chaired by the Prime Minister , and membership included

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1792-558: The general public. In countries with public trading markets, a privately held business is generally taken to mean one whose ownership shares or interests are not publicly traded. Often, privately held companies are owned by the company founders or their families and heirs or by a small group of investors. Sometimes, employees also hold shares in private companies. Most small businesses are privately held. Subsidiaries and joint ventures of publicly traded companies (for example, General Motors ' Saturn Corporation ), unless shares in

1848-489: The immediate erosion of customer and stakeholder confidence in the event of financial duress. Further, with limited reporting requirements and shareholder expectations, private firms are afforded a greater operational flexibility by being able to focus on long-term growth rather than quarterly earnings. In addition, private company executives may steer their ships without shareholder approval, which allows them to take significant action without delays. In Australia, Part 2E of

1904-412: The leading application of the incomplete contract theory to the issue of state-owned enterprises. These authors compare a situation in which the government is in control of a firm to a situation in which a private manager is in control. The manager can invest to come up with cost-reducing and quality-enhancing innovations. The government and the manager bargain over the implementation of the innovations. If

1960-452: The line, which raised questions about the line's electrification. On February 12, 2014, the operation of San Martín Line was granted to private company Corredores Ferroviarios . In April of the same year the San Martín line completed the modernisation of its entire fleet, putting into service 24 CSR SDD7 diesel locomotives and 160 coaches acquired from Chinese company CSR . The units had been bought in 2008 but they were unable to run so

2016-464: The line. In 1978 a restructuring of the San Martín line was carried out by the de facto Military Government, so the terminus was set in Pilar, Buenos Aires Province . From that point on, Doctor Cabred (former terminus) and intermediate stop Manzanares were used for long-distance services exclusively, something which was reverted in later years. With the privatisation of the entire rail network led in

2072-592: The negotiations fail, the owner can decide about the implementation. It turns out that when cost-reducing innovations do not harm quality significantly, then private firms are to be preferred. Yet, when cost-reductions may strongly reduce quality, state-owned enterprises are superior. Hoppe and Schmitz (2010) have extended this theory in order to allow for a richer set of governance structures, including different forms of public-private partnerships . SOEs are common with natural monopolies , because they allow capturing economies of scale while they can simultaneously achieve

2128-399: The private sector (perhaps because the good that is being produced requires very risky investments, when patenting is difficult, or when spillover effects exist), the government can help these industries get on the market with positive economic effects. However, the government cannot necessarily predict which industries would qualify as such 'infant industries', and so the extent to which this

2184-660: The project was still on the table. Similarly, in 2014 when the construction of a new 4.9 km (3.0 mi) viaduct through the centre of the city was announced (similar to the one proposed in 1947), the artists impressions presented showed overhead lines along the viaduct. Similarly, the Red de Expresos Regionales plan from the City of Buenos Aires showed the line as already being electrified. The national government announced in September 2015 that China Railway Construction Corporation

2240-428: The proportion of the corporate entity a government owns. One definition purports that a company is classified as a GLC if a government owns an effective controlling interest (more than 50%), while the second definition suggests that any corporate entity that has a government as a shareholder is a GLC. The act of turning a part of government bureaucracy into a SOE is called corporatization . In economic theory ,

2296-451: The question of whether a firm should be owned by the state or by the private sector is studied in the theory of incomplete contracts developed by Oliver Hart and his co-authors. In a world in which complete contracts were feasible, ownership would not matter because the same incentive structure that prevails under one ownership structure could be replicated under the other ownership structure. Hart, Shleifer, and Vishny (1997) have developed

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2352-508: The secretariat to the PCG and managed the implementation of the programme, which was completed in 2015. As of 2024, Philippines Amusement and Gaming Corporation (PAGCOR) is the most profitable state-owned enterprise in the Philippines. It is the third largest contributor to government revenues, following taxes and customs. Private company A privately held company (or simply

2408-469: The service. Conversely, they might be detrimental because they reduce oversight and increase transaction costs (such as monitoring costs, i.e., it is more difficult and costly to govern and regulate an autonomous SOE than it is the public bureaucracy). Evidence suggests that existing SOEs are typically more efficient than government bureaucracy, but that this benefit diminishes as services get more technical and have less overt public objectives. Compared to

2464-465: The state answers for the liabilities. Stocks of the corporation are not sold and loans have to be government-approved, as they are government liabilities. State-owned enterprises are a major component of the economy of Belarus . The Belarusian state-owned economy includes enterprises that are fully state-owned, as well as others which are joint-stock companies with partial ownership by the state. Employment in state-owned or state-controlled enterprises

2520-497: The state's response to natural disasters, financial crises and social instability. China's SOEs are at the forefront of global seaport-building, and most new ports constructed by them are done within the auspices of the Belt and Road Initiative . As of at least 2024, an Ethiopian SOE is Africa's largest and most profitable airline, as well as Ethiopia's largest earner of foreign exchange. In India , government enterprises exist in

2576-547: The stations had to modify their platforms for the new coaches. Once works were concluded, the Chinese trains made their debut in Argentina. The new rolling stock completely replaced the Materfer trains built in the 1960s and 1970s. State-owned company Operadora Ferroviaria Sociedad del Estado took over Belgrano Sur and Roca (operated by Argentren ) and Mitre and San Martín (operated by Corredores Ferroviarios ) lines after

2632-637: The subsidiary itself are traded directly, have characteristics of both privately held companies and publicly traded companies. Such companies are usually subject to the same reporting requirements as privately held companies, but their assets, liabilities, and activities are also including the reports of their parent companies , as are required by the accountancy and securities industry rules relating to groups of companies. Private companies may be called corporations , limited companies , limited liability companies , unlimited companies , or other names, depending on where and how they are organized and structured. In

2688-657: The term "enterprise" is challenged, as it implies statutes in private law which may not always be present, and so the term "corporations" is frequently used instead. Thus, SOEs are known under many other terms: state-owned company, state-owned entity, state enterprise, publicly owned corporation, government business enterprise, government-owned company, government controlled company, government controlled enterprise, government-owned corporation, government-sponsored enterprise , commercial government agency, state-privatised industry public sector undertaking, or parastatal, among others. In some Commonwealth realms , ownership by The Crown

2744-503: The tracks are run only by freight services operated by Trenes Argentinos Cargas . Companies that have operated the San Martín Line since it was established after the 1948 nationalisation are: The electrification of the San Martín line has been an ongoing issue, especially given that it is the only broad gauge line in Buenos Aires not to be electrified. Interest in electrifying the line came about as early as 1907 when it

2800-579: The word Private Limited at the end of their names. Privately held companies generally have fewer or less comprehensive reporting requirements and obligations for transparency , via annual reports, etc. than publicly traded companies do. For example, in the United States, privately held companies are not generally required to publish their financial statements . By not being required to disclose details about their operations and financial outlook, private companies are not forced to disclose information that may potentially be valuable to competitors and so can avoid

2856-544: The world's economy . For example, in 2008, the 441 largest private companies in the United States accounted for $ 1.8 trillion in revenues and employed 6.2 million people, according to Forbes . Separately, all non-government-owned companies are considered private enterprises . That meaning includes both publicly traded and privately held companies since their investors are individuals. Private ownership of productive assets differs from state ownership or collective ownership (as in worker-owned companies). This usage

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2912-585: Was carrying out a feasibility study to assess the electrification of the line. A month earlier, the Ministry of the Interior and Transport had announced the possibility of financing the line's electrification through the Inter-American Development Bank . Presumably, the diesel-electric rolling stock would be moved to other broad gauge diesel services in the country. Current San Martín Line services as of May 2023: Government owned corporation A state-owned enterprise ( SOE )

2968-471: Was closed in 2018, as a new viaduct (with an extension of 5 km) was being installed between intermediate stations Palermo and La Paternal to eliminate 11 level crossings in the city. Villa Crespo (formerly, "Chacarita") was closed in 2017 and La Paternal one year later. The viaduct was inaugurated in July 2019, although the covid-19 pandemic caused works were delayed so both stations remained closed. La Paternal

3024-490: Was not discussed again until 2008 when the Government of Argentina announced that electrification using overhead lines for the whole system was start in June 2008. In 2014, 24 CSR SDD7 diesel locomotives and 160 coaches acquired from Chinese company CSR were put into service, seemingly putting any electrification plans on hold, but that same year the Minister of the Interior and Transport Florencio Randazzo stated that

3080-585: Was reopened in July 2022, while Villa Crespo remains closed as of May 2023. In 2023 it was announced that the branch connecting the Caseros and Haedo stations (which had been abandoned for decades) would be re-opened for passenger services. Three new stops would be built for that purpose. The branch had been built and opened by the Buenos Aires Western Railway in 1908, connecting the San Martín, Roca and Sarmiento lines. As of 2023,

3136-503: Was still part of the Buenos Aires and Pacific Railway . More concrete plans emerged in 1947 which included elevating the track through the centre of the city, however, with the nationalisation of the railways in 1948, these plans were shelved. By 1987, these plans were revisited and Ferrocarriles Argentinos signed a contract with the Soviet company Tecnostroyexport to use 25 kV AC railway electrification like that recently installed on

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