At the beginning of the Frondizi administration, Dr. Alberto López Abuín), a transportation specialist and defender of the railway, served as Secretary of Transportation. He proposed, in February 1958, a modernization policy that included the incorporation of new rolling stock, thus seeking to improve the transportation of cargo through the railway, making it gain ground against the advance of automobile traffic that was being experienced in the country. Abuín resigned from his position in May 1959.[9]​.

By 1959 it was reported that the deficit reached $9,627,295,000, which was no longer tolerable for the state. An initial advice from foreign experts was resorted to and the proposal was made that the railway network should be lowered by 50% to become profitable.[10] Leaving aside proposals such as the revaluation of steam traction - promoted by engineer Livio Dante Porta - the Minister of Public Works Alberto Constantini and the Minister of Finance Álvaro Alsogaray mainly sought to reduce the fiscal deficit through an increase in tariffs and, to a lesser extent, They pursued the modernization of the railway system. Alsogaray traveled to the United States to arrange the arrival of General Thomas Larkin to Argentina, where he had to carry out a transportation study on behalf of the World Bank. Larkin had been responsible for the modernization of the railways in France, West Germany and Japan.[11] Thus the so-called Larkin Plan was designed, which among other issues, contemplated abandoning 32% of the existing railway tracks, the dismissal of 70,000 railway employees (the political clientelism of the previous constitutional government had produced a notorious overcapacity in state companies),[6] and the reduction to scrap of all steam locomotives, as well as 70,000 wagons and 3,000 cars, with the idea that all this would be purchased on the foreign market and the Argentine Railways "Ferrocarriles Argentinos (1949-1993)") would be modernized at once, either by renewing the rails or by renewing the rolling stock, which were in terrible conditions.[12] The union leaders were opposed. fervently upon learning of the plan that included the dismissal of employees and the elimination of branch lines. The political crisis of the moment meant that Alsogaray and Constantini had to resign from their positions in April 1961, which meant that most of the plan was not executed.[9]​.

However, Fiat-Materfer was the first rolling stock factory in Latin America, which after two years was able to manufacture 300 passenger cars, 500 motor cars and 150 electric cars. The Fiat company from Ferreyra built 200 diesel engines for locomotives, while Siam Di Tella was in charge of assembling the electrical installation. Toshiba cars were imported for the electric branches.[11]​.

With Arturo Acevedo "Arturo Acevedo (father)" as Minister of Public Works), the recommendation to modernize locomotives began to be put into practice. In June 1961, new diesel trains were incorporated into the suburban service of the General Roca Railway, with which many locomotive drivers and train drivers lost their jobs. Acevedo was in favor of eliminating all lines that had a deficit, as was the case of those of the Buenos Aires provincial railway, which, being of too small a gauge (1000 mm), was not capable of carrying much load or transporting a large flow of passengers. The closure of the branches caused the unions to call different strikes, including a 42-day strike that began on August 1, 1961, opposing both the layoffs and the scrapping of rolling stock. However, at the end of the strike, none of the branches that had been closed were finally closed. rehabilitated.[9]​.

President Arturo Frondizi gave a speech on June 5, 1961 that was broadcast on radio and television, talking about the steps that were going to be followed in terms of transportation:

The demonstrations and strikes during the government of Arturo Frondizi were very varied, whether due to university disputes or the 1958 oil contracts. It should also be noted that there were several Peronist mobilizations called by the CGT.

In August 1961, union leaders decided to press with 48-hour national strikes starting on October 26. The response from the bases in the first week is overwhelming. The president responds with layoffs and closure of workshops in the interior. The unions called for an indefinite strike.

The railway unions expressed their discontent, especially La Fraternidad and Unión Ferroviaria, starting a strike for 48 hours that ended on October 28. But then a decree was made public to close a large number of branches and in response, on October 30, a new strike began that lasted 42 days and forced the Armed Forces to take control of the railways during the measure of force to operate some formations.[9]​.

There were demonstrations and clashes in various parts of the country. More money was offered to those who worked on strike days and workers were even forced to report to work or be detained, within the framework of the repressive CONINTES Plan, then in force. Finally, with the mediation of Cardinal Antonio Caggiano, the plan was suspended, the measure of force ceased and some dismissed workers were reinstated, although, contrary to the union's claims, no workshop or section of road was reopened.[9]​.

At the beginning of the Frondizi administration, Dr. Alberto López Abuín), a transportation specialist and defender of the railway, served as Secretary of Transportation. He proposed, in February 1958, a modernization policy that included the incorporation of new rolling stock, thus seeking to improve the transportation of cargo through the railway, making it gain ground against the advance of automobile traffic that was being experienced in the country. Abuín resigned from his position in May 1959.[9]​.

By 1959 it was reported that the deficit reached $9,627,295,000, which was no longer tolerable for the state. An initial advice from foreign experts was resorted to and the proposal was made that the railway network should be lowered by 50% to become profitable.[10] Leaving aside proposals such as the revaluation of steam traction - promoted by engineer Livio Dante Porta - the Minister of Public Works Alberto Constantini and the Minister of Finance Álvaro Alsogaray mainly sought to reduce the fiscal deficit through an increase in tariffs and, to a lesser extent, They pursued the modernization of the railway system. Alsogaray traveled to the United States to arrange the arrival of General Thomas Larkin to Argentina, where he had to carry out a transportation study on behalf of the World Bank. Larkin had been responsible for the modernization of the railways in France, West Germany and Japan.[11] Thus the so-called Larkin Plan was designed, which among other issues, contemplated abandoning 32% of the existing railway tracks, the dismissal of 70,000 railway employees (the political clientelism of the previous constitutional government had produced a notorious overcapacity in state companies),[6] and the reduction to scrap of all steam locomotives, as well as 70,000 wagons and 3,000 cars, with the idea that all this would be purchased on the foreign market and the Argentine Railways "Ferrocarriles Argentinos (1949-1993)") would be modernized at once, either by renewing the rails or by renewing the rolling stock, which were in terrible conditions.[12] The union leaders were opposed. fervently upon learning of the plan that included the dismissal of employees and the elimination of branch lines. The political crisis of the moment meant that Alsogaray and Constantini had to resign from their positions in April 1961, which meant that most of the plan was not executed.[9]​.

However, Fiat-Materfer was the first rolling stock factory in Latin America, which after two years was able to manufacture 300 passenger cars, 500 motor cars and 150 electric cars. The Fiat company from Ferreyra built 200 diesel engines for locomotives, while Siam Di Tella was in charge of assembling the electrical installation. Toshiba cars were imported for the electric branches.[11]​.

With Arturo Acevedo "Arturo Acevedo (father)" as Minister of Public Works), the recommendation to modernize locomotives began to be put into practice. In June 1961, new diesel trains were incorporated into the suburban service of the General Roca Railway, with which many locomotive drivers and train drivers lost their jobs. Acevedo was in favor of eliminating all lines that had a deficit, as was the case of those of the Buenos Aires provincial railway, which, being of too small a gauge (1000 mm), was not capable of carrying much load or transporting a large flow of passengers. The closure of the branches caused the unions to call different strikes, including a 42-day strike that began on August 1, 1961, opposing both the layoffs and the scrapping of rolling stock. However, at the end of the strike, none of the branches that had been closed were finally closed. rehabilitated.[9]​.

President Arturo Frondizi gave a speech on June 5, 1961 that was broadcast on radio and television, talking about the steps that were going to be followed in terms of transportation:

The demonstrations and strikes during the government of Arturo Frondizi were very varied, whether due to university disputes or the 1958 oil contracts. It should also be noted that there were several Peronist mobilizations called by the CGT.

In August 1961, union leaders decided to press with 48-hour national strikes starting on October 26. The response from the bases in the first week is overwhelming. The president responds with layoffs and closure of workshops in the interior. The unions called for an indefinite strike.

The railway unions expressed their discontent, especially La Fraternidad and Unión Ferroviaria, starting a strike for 48 hours that ended on October 28. But then a decree was made public to close a large number of branches and in response, on October 30, a new strike began that lasted 42 days and forced the Armed Forces to take control of the railways during the measure of force to operate some formations.[9]​.

There were demonstrations and clashes in various parts of the country. More money was offered to those who worked on strike days and workers were even forced to report to work or be detained, within the framework of the repressive CONINTES Plan, then in force. Finally, with the mediation of Cardinal Antonio Caggiano, the plan was suspended, the measure of force ceased and some dismissed workers were reinstated, although, contrary to the union's claims, no workshop or section of road was reopened.[9]​.