Chinese investors eyeing rail opportunities in Honduras

Honduran authorities will meet with a Chinese engineering firm interested in participating in the project to build an interoceanic railway in the Central American nation, the country's public-private partnerships promotion agency Coalianza said in a release.

According to Coalianza, the objective of meeting with China National Electric Engineering Company is agreeing on the implementation of the project's final engineering study.

Representatives from UK-based investment advisory firm Blackstone Wealth Management and Chinese consulting firm C3 Network of Companies will also attend the meeting.

The interoceanic railway project will improve the country's logistical infrastructure. It entails the development of two deepwater ports: one at Honduras' Pacific coast, and another one on the Atlantic coast.

The initiative also includes the construction of up to 10 railway lines totaling 600km to connect both ports, which would pass through the country's El Valle, El Paraíso, Olancho and Colón departments. The rail lines will be used by both freight and passenger trains.

The project also envisions the construction of an airport, and power generation infrastructure, among other facilities. The estimated investment to develop the initiative is US$10bn.

Pre-feasibility studies on the project have already been completed.

Without disclosing their names, Coalianza said three potential bidders have expressed interest in the financing and construction of the works.

The project was initially launched back in 2013, and since then, it has attracted the interest of Asian, US, and European companies.

Development of the railway line could take as long as 15 years, according to the local authorities.