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CHENGDU, Aug. 31 -- The first locomotive designed for a railway renovation program in Argentina was completed Wednesday, CRRC Corp. Ltd. said.

The first meter-gauged locomotive, built in Ziyang City in Sichuan Province, was completed and the first 20 will be made and exported to Argentina, said Yu Weiping, vice president of CRRC, China's largest rail transportation equipment maker.

The locomotives will be supplied to Belgrano Cargas, an Argentine operator of cargo railway services. China has provided financing, equipment and services for the renovation of the railway, which runs through Argentina's important agricultural regions.

The railway will greatly reduce transportation costs.

Upgrading rail services will help lower the cost of grain in Argentina and boost their international competitiveness, said Ezequiel Lemos, president of Belgrano Cargas, who was present Wednesday when the first locomotive rolled off the production line.

The Ziyang CRRC branch has made locomotives for Vietnam and Thailand. The new locomotive has been customized for Argentina's particular needs, said Yu.

CRRC will establish a regional center in South America, headquartered in Argentina, said Yu.

In 2013, China South Railway (CSR) won a contract worth 1 billion U.S. dollars to provide 709 carriages to renew Argentina's commuter system.