Six international companies have shown interest in taking over the concession and investing $2.5 billion to make 1,600 kilometers of roads operational.
For the second half of 2022, the launch of the competition so that one private company take over management and, with an investment of at least $2.5 billion, railway rehabilitation from Ecuador
According to the Ministry of Public Works, the idea is to carry out a “sustainable railway rehabilitationunder modern standards that allow the substitution of substances that pollute the environment for electric traction systems, which favor the decarbonization of transport”.
Six Business international organizations have shown interest in the project, and have already had meetings with national authorities. One of the most prevalent schemes in the initial proposals is to give greater weight to the regular cargo and passenger transportationand less to railway tourist function.
Currently, for example, a mission of representatives of the Reliance International company is in Ecuador to promote its Production and Tourism Train project. This initiative consists of a route that goes from San Lorenzo to Loja; which means that it would pass through four ports: San Lorenzo, Posorja, Guayaquil and Puerto Bolívar
William Stills, representative of the North American company in Ecuador, pointed out that the idea is to use the existing roads, but extend the route so that it covers the main logistics points in the country.
In total, 5,200 kilometers of roads would be required to make the project profitable, through a model where 75% of the utility of the railway go to load tasks; 5%, to sightseeing and another 20% for passengers.
In other proposals, the weight of tourist activities can rise to 25%, but the approach is the same.
Both the public works ministry and the public-private partnerships ministry (APP) are evaluating all options. The goal is that the dealer can be chosen until the beginning of 2023.
At the beginning of January 2022, the Ministry of Public Works assumed control of the railway infrastructure left by the liquidated public company, after years of continuous losses. This infrastructure includes 965.6 kilometers of railway, tractive and towed equipment (81 units), as well as surrounding movable and immovable property (35 rehabilitated stations and 60 not rehabilitated).
Help from local governments
Until the process of concession starts up, the government authorities are analyzing the viability of the operation of the enabled sections, with the economic, logistical and human resources support of various local governments and civil society. For this, a pilot plan is coordinated with the Ministry of Tourism.
Likewise, to safeguard the national railway infrastructure, it is planned to carry out inter-institutional agreements, loans or the corresponding legal instrument with the local governments through which the railway system passes.
In this context, together with the Municipality of Quito, the Undersecretary of Land and Rail Transport, Mario Pardo, coordinates a new inter-institutional agreement to rehabilitate and provide security at the stations located in the Chiriyacu-El Quinche section, with the aim of reactivating the social activities and enterprises and, as a consequence, the sightseeing and the local economy. (JS)
FACT. – The extension and rehabilitation of the railway infrastructure could take between 3 and 5 years of work.
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