Railway Reactivation to Slash Colombia’s Transport Costs by 26%

The reactivation of Colombia’s railway system, part of the National Government’s infrastructure plans, is progressing. With road projects also underway, an average reduction of 26% in transportation costs is anticipated.

In March, the Ministry of Transportation announced an investment of 464,000 million pesos by the National Infrastructure Agency (ANI) in five contracts to ensure the operation of several railway corridors. This includes two infrastructure modernization contracts for the Bogota-Belencito and La Dorada-Chiriguana corridors. As well as pre-feasibility studies to enhance connections between Buenaventura and Bogotá, the region with the Central Railway Corridor. Additionally, investment is allocated for the surveillance of the Pacific railway corridor and the structuring of long-term Public-Private Partnership (APP) projects.

Minister of Transportation, William Camargo Triana, highlighted that reactivating railways could reduce freight movement costs by up to 26%, explaining that “in Colombia, transporting a container from Bogotá to the Caribbean ports can cost around US$2,450; however, by rail, that cost would drop to approximately US$1,800.”

Colombia currently boasts 3,533 kilometers of railway infrastructure, with 31% of them operational. Of these, 1,734 km are under the management of the National Highway Institute (Invias), 1,610 km are overseen by the National Infrastructure Agency (ANI), and 189 km form part of Cerrejon’s private railway network.

Petro government proposes alternative to Panama Canal

Recently, the Ministry of Commerce shared a project proposed by the government of President Gustavo Petro, aiming to connect the Pacific and Atlantic oceans through a railway corridor between Cupica (Choco) and Turbo (Antioquia). The proposal revolves around the construction of a 198.6 km railway line, carrying 16 trains per day, with tunnels and viaducts to minimize the environmental impact and allow the movement of local fauna.

The initiative, which is proposed as an alternative to the Panama Canal, would imply an approximate investment of 25 billion pesos. Likewise, the establishment of a specialized port for the circulation of maritime containers will require around 341 million dollars. The project is now in the Transportation Planning Unit to move to the pre-feasibility stage, undergoing preliminary analysis to identify market overviews, necessary resources, revenue, cost projections, and potential benefits.