THE Peruvian government has awarded a $US 420m engineering, procurement and construction (EPC) contract for a new 120km freight line to connect the Pacific port of Chancay with mines and industrial areas in the country’s central highlands or Sierra Central.

The contract has been awarded to Power Construction Corporation of China (Power China). Under the EPC contract, Power China will be responsible for the detailed design and construction of the new railway, with no operations or long-term maintenance component included in the current award.

The project involves the construction of an alignment running inland from Chancay through complex Andean terrain, requiring tunnels, viaducts and major earthworks to avoid steep gradients. The contract specifies a 36-month construction period, with completion and entry into service scheduled for 2028.

The line is intended primarily for freight traffic, with a focus on bulk commodities such as copper and other minerals produced in central Peru. The current transit time by road from the central highlands to the Pacific coast can exceed 18 hours, and the new line is expected to cut this to around 5 hours, while also improving reliability, lowering logistics costs for exporters and significantly reducing reliance on long-distance road haulage.

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