Peru's Kuczynski pushing for railway projects

Peruvian President Pedro-Pablo Kuczynski's plans to increase rail infrastructure are gathering steam.

The transport and communications ministry declared two light railway projects around Lima, and a freight logistics initiative, of national interest, setting aside surrounding terrain for five years, according to a notice published in state gazette El Peruano.

The projects include the Lima-Huacho passenger and cargo railway along the coast north of the capital, the Lima-Chosica railway to the east and a multi-modal logistics platform in the northern beach resort of Ancón, which would provide cross-docking services and link up to both Lima's Jorge Chávez airport and the port of Callao.

The cost of the projects would be covered by the transport ministry's budget, according to the notice.

"The deficit in mass transit systems in the cities of Lima and Callao and bordering regions and lengthier travel times affecting the areas of north, south and central Lima make it necessary to implement a railway corridor along the coast," the notice said.

The ministry is working on a five-year national railway plan that envisages investment of US$14.3bn. Caracas-based multilateral lender CAF is providing technical assistance during the planning stage.

Peru, which has rail networks totaling 1,829km, has already lined up another eight projects totaling 3,525km, according to the transport ministry. These include a 180km/h southern coastal railway line linking Lima, Pisco and Ica, a bi-oceanic railway, a US$2bn trans-Andean tunnel, the Puno and Huancayo-Huancavelica lines and mining railroad projects in Cajamarca and Apurímac regions.

Kuczynski, who took office July 28, plans to travel to China to seek financial backing for railway projects ahead of the Asia-Pacific Economic Forum (APEC) in November. Chinese leaders and investors are expected to attend the November 17-19 event.

Kuczynski has pledged to work to eliminate all bureaucratic obstacles to US$25bn in delayed infrastructure projects, including the US$6bn concession for line No. 2 of the Lima metro.