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Chugging along: The rail projects Peru plans for the medium and long term

Bnamericas
Chugging along: The rail projects Peru plans for the medium and long term

Peru is making slow but steady progress with passenger and freight rail projects the government plans to promote in the medium and long term.

In parallel with construction of the US$5.35bn line No. 2 of the Lima metro – which has progressed 59%, according to transport regulator Ositran – there are three projects involving more than US$8.5bn that are waiting to be carried out in the medium term, plus a possible rail link to connect the future Chinchero international airport in Cusco (AICC) with the tourist hotspot and six interregional sections requiring around US$31bn. 

As occurred with metro line No. 2 – and in addition to the technical files and preliminary evaluations – the challenge for moving forward with these projects will be the release of land, especially in the Peruvian capital, which is home to more than a third of the country's population.

BNamericas reviews the initiatives in the pipeline.

Modernization of the Huancayo-Huancavelica FHH railway (US$565mn)

The project, recently awarded as a PPP to Consorcio Concesionaria Ferroviaria del Centro, consists of the modernization and rehabilitation of the emblematic train that crosses the central Peruvian highlands.

According to the contract, the consortium, formed by Hidalgo e Hidalgo (Ecuador) and Benito Roggio (Argentina), will have five years to design, finance and build the project, and will then operate the railway for 25 years.

Operations are scheduled to start in late 2029 or early 2030.

The 129km line will transport both cargo and passengers, have seven stations and cross the regions of Junín and Huancavelica.

Branch of line No. 4 of the Lima metro (estimated at more than US$1bn)

Construction of the project to connect the upgraded Jorge Chávez international airport and line No. 2 began this year and is expected to be ready in four years.

The construction consortium is the same one that has been building metro line No. 2 via a PPP, comprising Cosapi, Iridium, FCC, Salini Impregilo, Ansaldo STS and Ansaldo Breda. According to the transport and communications ministry (MTC), the cost of the project is over US$1bn.

The 7km branch will have eight stops and be completely underground. The works involve only the first section of the planned 30km line No. 4, which will have 28 stations. The rest of line No. 4 is still in the early stages.

Source: MTC

Lima metro line No. 3 (estimated at US$7bn)

Although construction of the project has not yet begun, the MTC says work is underway to obtain the budget to enable the start of preliminary activities (preparation of the technical file, the environmental impact study, obtaining rights of way and the acquisition of land).

The 34.8km project with 28 stations is expected to be developed via a government-to-government (G2G) agreement.

Since it is still in the early stages, there are no details of the possible contractor. According to the MTC, there is interest from Canadian companies in the project. The ministry has also indicated that it plans to hire specialized technical assistance to provide support.

Rail projects worth around US$31bn

In parallel to those three projects, the MTC aims to connect various parts of the Peruvian coast via train. At the beginning of September, it presented a plan for six sections of railroad involving US$31bn that it hopes to develop between 2026 and 2032. They are:

  • Lima-Ica commuter railway (central/south coast)
  • Lima-Barranca railway (central coast)
  • Puerto San Juan de Marcona-Andahuaylas railway (southern coast/highlands)
  • Lambayeque-Cajamarca railway (coast/northern Sierra)
  • Trujillo-Barranca railway (north coast)
  • Hidroeléctrica-Quillabamba railway (southern Sierra)

The 280km Lima-Ica section was recently presented and involves an estimated US$6.5bn, according to the MTC. The project will be developed via a G2G agreement and will have 15 stations, 47km of bridges and viaducts, and 32km of tunnels.

The ministry has also provided details of the 448km Lambayeque-Cajamarca railway, which requires an estimated US$5.08bn and is already considering preparing a project profile study. The preparation of the study will cost around 80mn soles (US$21mn) and the Lambayeque regional government expects to call the tender next March.

Finally, one of the projects that has also seen moderate progress is the Lima-Barranca railway. In February this year, the MTC approved the preparation of the pre-investment study for the 245km project. The section will be one of the MTC's priorities given that it will have connections to the ports of Chancay and Callao.

Chinchero-Cusco railway

The MTC is currently evaluating building a 25km light rail line to connect the AICC with the city of Cusco. A new international airport is currently being built in Chinchero, which is expected to be ready in 2026.

So far, US$2.7mn has been allocated for the preparation of the feasibility study. The report will be prepared via the Official Development Assistance (ODA) mechanism of the South Korean government.

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