The locomotive is used exclusively on railroads in Argentina having been built for use on the broad gauge routes in the country.

The engines were built at ALCO's Schenectady, New York factory in 1957, with the finished locomotives for export shipped from 1958 to 1959.

The 30 locomotives that Ferrocarril Nacional Domingo Faustino Sarmiento owned were not well suited for that line due to a lack of on-line traffic.

During the 1970s the RSD-16's were heavily used in services between Córdoba, Rosario, Mendoza, Santa Rosa, and the resorts in Mar del Plata.

Materfer would later use shop space at an Electro-Motive Diesel plant in Argentina to build new engine blocks for use in the RSD-16's.