antipodean
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1) Greater fuel efficiency means less pollution.
2) Less congestion on the roads improves safety, and traffic flow, and reduces wear and tear (thus maintenance costs on the roads and bridges).
3) The track itself already existed, so construction costs are irrelevant.
4) The train provides connections to towns that are not on the highway.
5) The simple fact of maintaining a healthy rail system is always an advantage to any nation.
6) The rail link provides an alternative route of travel if something goes wrong on the highway, or the bus service suddenly goes belly up, or any one of a dozen other wildly unpredictable things happens, which is always a possibility in Argentina.
And beyond that I will repeat, a government has a responsibility to provide and maintain public transportation
All these points are fantastic, so why weren't more people using the trains while they were running if they cared about these points as much as we do? They chose to take the bus. (Point 2 - the track still needs to be replaced every 20 years, a 25 year old track can't be used safely according to the internet, which means provisioning for future investment and amortizing past investment still represents a cost - also replacing or fixing sections of it that need it every so often)
I'll share the sentiment that the government has a responsibility to ensure transport links exist (or at least in an ideal Argentina I would like one that assumes such a responsibility) or ideally go one step further and actually deliver it where not viable as a private business, providing all residents receiving an income (be it from foreign pensions or a humble job) paid their fair share of income and wealth taxes as they would in Europe or any civilised country with a good train network thus giving the government the money to spend on assuming that responsibility. Sadly, the money fairy doesn't exist and too many people choose not to contribute to the Argentine government through voluntary payment of income and wealth taxes (including some that despite their lack of contribution, voice a lot of political opinion on how other Argentine's tax payers money ought be spent).
Again, I reiterate, the transport links in question still exist just in a different form so let's not invent a discussion on this government abandoning people by cutting this train just to have a moan or because we want to ride a choo-choo train.