THE Development Bank of Latin America and the Caribbean (CAF) has approved a loan of up to $US 300m to the Colombian government to finance the Programme for Railway Reactivation, Sustainable Mobility and Logistics Efficiency.
The programme aims to address under-use of the national rail network, with a focus on increasing the share of freight moved by rail. According to CAF, more than 70% of domestic freight traffic in Colombia currently moves by road, raising logistics costs and reducing competitiveness.
The plan includes the establishment of a National Railway Agency, the modernisation of railway legislation and regulations, and the designation of priority projects. It will also promote the adoption of clean technologies such as electrification in urban and regional transport systems and strengthen their financial sustainability.
Reactivation of the national rail system is a key objective of the administration of Colombia’s president, Gustavo Petro. In August the government prioritised six projects, representing total investment of Pesos 94 trillion ($US 24.2bn):
- Interoceanic Corridor
- Pacific OP (Yumbo - Caimalito)
- Pacific Corridor (Buenaventura - Palmira)
- Villavicencio - Puerto Gaitán
- Bogotá region - Central Railway Corridor, and
- Bogotá - Belencito Corridor.
The National Infrastructure Agency (ANI) has published tender documents for technical feasibility studies for the Bogotá - Central Railway Corridor and Buenaventura - Palmira projects.
According to ANI, the Bogotá - Central Railway Corridor project will cover 393km, and the feasibility study has a budget of Pesos 91.2bn. A budget of Pesos 53.3bn has been set for the Buenaventura - Palmira feasibility study, covering 120km.
Under the current schedule, bids are due to be opened on November 6, with contract signing expected on December 23.
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