Chile opts for slow but steady rail development

Chilean efforts at rail development have reached a new milestone with the reopening of the Santiago-Curicó route. 

The route is part of the US$150mn overhaul of the 400km Santiago-Chillán line, which was supposed to begin operations last year but faced delays following heavy rains in June and August that damaged bridges. 

The new trains were built by consortium CRRC-Sifang, which won a US$70mn rolling stock contract in 2020.

Extensions of the Curicó service further south to the cities of Talca in Maule region and Chillán in Ñuble are planned for the first half of the year.

When consulted by BNamericas on the possibility of reactivating the Santiago-Temuco service, which ceased operations a decade ago, Eric Martín, chairman of state rail firm EFE, said such a move must be evaluated step by step.

“There are always plans and dreams. The issue is that we are a company, and as a company, we need to be profitable. Therefore, there’s an evaluation that’s not only technical but also commercial,” he said during the inauguration ceremony.

Similarly, transport minister Juan Carlos Muñoz said the slow progress is part of a systematic approach that is showing results. 

“There’s a strategy on the State’s behalf which is to advance in a serious and responsible manner. This means expanding the [rail] network in zones with clear demand opportunities that can later justify longer services,” he told BNamericas.

The minister highlighted that the government reactivated rail services between Temuco and Pitrufquén in Araucanía region last year, and that it plans to activate services for Llanquihue, Puerto Varas and Puerto Montt in Los Lagos region later this year. 

“The idea is to rebuild what we had, but with a better standard,” he said. 

Martín said EFE is open to issuing new bonds to obtain funds, following a successful US$500mn operation in 2020.

“We have a 'AAA' rating [in the local market], which says that we are a trustworthy company, and we have the capacity as a company to use this mechanism again,” he said. 

Regarding the transport ministry's electromobility efforts, Muñoz said that besides the ongoing tender for Santiago’s mass transit system, other processes outside the capital are producing results.

There are 40 electric buses operating in Antofagasta city, while a contract to bring 42 units to Coquimbo region was recently awarded.

The ministry is also in talks with Antofagasta region to bring electric buses to Calama, while an announcement for Valparaíso is expected in the short term, Muñoz told BNamericas.