Colombia due to award US$800mn freight rail PPP in December

Colombian infrastructure agency ANI will receive until November 14 offers to revamp the La Dorada-Chiriguaná freight rail line, a project budgeted at 3.4tn pesos (US$838mn) that is due to be awarded in December.

Capex is estimated at 2.6tn pesos and the rest is for operations.

“This project is a reality, there is no turning back, the final specifications have already been published... it should be awarded in December, ANI’s VP of structuring Katherin Sandoval said during the event in which the announcement was made.

The corridor will be the first rail project in Colombia to be contracted under the public-private partnership modality.

The final specifications were published on July 26 on the portal of the Secop public procurement system.

The project covers the 522km line from La Dorada in Caldas department to Chiriguaná in Cesar plus a 4km branch line in Gamarra.

Preconstruction is due to take 15 months and construction 49 months. Operations are planned to last 50 months and the process of handing it back to the State is estimated at six months.

La Dorada-Chiriguaná is considered the backbone of Colombia's railway reactivation plan, as it is a strategic link between the interior of the country and the Caribbean area, through the departments of Caldas, Antioquia, Santander and Cesar.

According to ANI estimates, the rail corridor will reduce transportation costs by around 20% and offer intermodality with roads and other railways.

La Dorada-Chiriguaná line mainly transports construction materials such as cement and steel, and raw materials for the manufacture of ceramics and paper, as well as coffee, cocoa, fertilizers and food products.

Last year the corridor transported 182,810t compared to 89,336t in 2022.

THE WORKS

The 10-year concession will include financing, property management, social and environmental management, preparation of detailed studies, construction, rehabilitation, improvement, operation and maintenance of the corridor and its respective branches, among other aspects.

The works also include reinforcing 22 bridges and maintenance on 76, and 1,480 hydraulic works.

The construction of a cargo transfer center, an administrative building and an operations control center is also planned, along with workshops for complex repairs in Barrancabermeja and a workshop for minor adjustments in Chiriguaná, as well as repairs to 28 stations.

Additionally, the changing of 200km of rails is planned, from 75 pounds per yard (lb/y) to 115lb/y, which according to Sandoval would later offer the possibility of a more efficient gauge.

Projected rolling stock includes four locomotives plus an optional additional one, 93 platforms with estimated annual loading capacity of 2.8Mt and 69 wagons.

Construction of a vehicle and pedestrian bridge over the Sogamoso river and the relocation of two schools is also contemplated.