PARAGUAY is seeking potential collaboration with the United Arab Emirates (UAE) to revive its long-delayed Suburban Train project, following the visit of a technical delegation from Etihad Rail to the capital Asunción on November 4.
The delegation met with the president of Paraguay, Santiago Peña, to discuss cooperation in the development of urban rail as well as freight, with the proposed 44km commuter and tourist line between Asunción and Ypacaraí among the main topics on the agenda.
The meeting marks renewed momentum for the project after the Paraguayan government cancelled a $US 500m concession agreement with Korea in September 2024 to finance, build and operate a light rail line with a fleet of tram-trains. The government subsequently announced it would take the project forward under a new framework, opening discussions with several foreign partners, including the UAE.
According to a report published by La Política Online, citing officials from the Ministry of Public Works and Communications (MOPC), the government could contribute around $US 150m, with private investors providing up to $US 450m under a 30-year concession model.
The commuter line is expected to carry up to 60,000 passengers per day. While initial plans envisaged the Asunción - Ypacaraí section as the first phase, the government now intends to start with Asunción - Luque before extending to Ypacaraí in a second phase.
If completed, the project would provide Paraguay’s first passenger service in decades. There have been no passenger services since regular operations between Asunción and Luque ceased in the early 2000s, with only occasional tourist trains continuing.
Reopening the line would reduce road congestion in Asunción, promoting sustainable urban mobility alongside new tourism and regional development initiatives.
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