Spotlight: Colombia's US$800mn La Dorada-Chiriguaná rail corridor

Colombia’s finance ministry and fiscal policy council Confis paved the way for the tender for the 3tn-peso (US$776mn) La Dorada-Chiriguaná freight rail corridor.

On Friday, the ministry approved the valuation of contingent obligations and the financial conditions while Confis guaranteed the required budget.

The Gustavo Petro administration deems the corridor a key project in its plans to reactivate the rail system.

BNamericas provides an overview of the main characteristics of the project.

FIRST RAIL PPP

La Dorada-Chiriguaná will be the first rail project to be contracted under the public-private partnership (PPP) modality and involves a 10-year concession for modernization works, maintenance and operation.

The project includes building a vehicular and pedestrian bridge across the Sogamoso river in Puerto Wilches municipality, 1,480 flood prevention works, a new administrative building, an operational control center, two workshops for the maintenance of trains and a cargo transfer center in La Dorada municipality.

LOCALITIES

The rail line will connect the municipalities of La Dorada in Caldas department, Sonsón, Puerto Triunfo, Cocorná, Puerto Nare and Puerto Berrío in Antioquia; Cimitarra, Puerto Parra, Simacota, Barrancabermeja, Puerto Wilches, Sabana de Torres and Rionegro in Santander; and La Esperanza in Norte de Santander.

It will also serve San Alberto, San Martín, Aguachica, Gamarra, La Gloria, Pelaya, Pailitas, Tamalameque, Chimichagua, Curumaní and Chiriguaná in Cesar.

POTENTIAL BIDDERS

Last November, infrastructure agency ANI told BNamericas that 15 companies were interested in the PPP.

Among the international ones are China Harbor Engineering, Sumitomo Corporation Andes, Mota-Engil, Comsa, Grupo Ortiz, Ohla, Copasa, Sacyr, Grupo Robert and Grupo Azvi.

Local companies include Transfeport, Servicios Arcom, Grupo Yamil Montenegro Colombia, Castro Tcherassi and Pedelta.

FIGURES

According to ANI data, cargo mobilization between La Dorada and Chiriguaná increased from 89,336t in 2022 to 182,810t in 2023.

The government estimates that the connection will reduce transportation costs by 26% and offer links with roads and other rail lines.