US$250mn investment to breath new life into Jamaican rail

Jamaica's transport ministry, through the Jamaican Railway Corporation, has signed a non-binding memorandum of understanding with Herzog Jamaica Limited, the Jamaican subsidiary of US railroad construction company Herzog International, in order to resuscitate the country's rail services.

The project will require a US$250mn investment, which will be provided by several investors including Herzog international and the Jamaican government, according to a statement from the Jamaican government.

The plans will be carried out in four phases. The first of which will see the development of a railway from Montego Bay to Appleton, with construction works expected to begin before winter 2017.

Phase two comprises the development of a railway from Spanish Town to Ewarton and from Spanish Town to Clarendon Park, as well as another for the Appleton to Clarendon Park route.

A third phase will involve development of the Spanish Town to Kingston route, while a fourth phase will include works to connect the Vernamfield former military airfield to the existing main line.

Prior to the start of construction works, the Jamaican government will verify the condition of 21 bridges and tunnels over which the projected lines will be built. Meanwhile, Herzog International will work to secure funds from other investors and submit a final business plan for the government's consideration.

The MoU signed between both parties also lists the terms and conditions for the potential concession agreement to carry out the project and the subsequent operation of the rail lines.

Jamaica's Transport and Mining minister Lester Michael Henry said the project could potentially transform the economy of the regions through which the new railways will run by contributing to the development of certain industries, particularly tourism.

The Jamaican government has made prior attempts to reinstate the country's rail service. An economic assessment study from some years ago concluded that rehabilitating the island's network rail services would have a very strong and favorable impact on the country's GDP and economic growth.

Passenger rail services in Jamaica were suspended in the early 1990s, with a brief revival in 2011 that lasted only a year.

Press reports have pointed to squatting on some of the country's rail lands as one of the main problems for the reintroduction of rail services in Jamaica. The government's announcement does not provide information on how the issue will be addressed in order to carry out the project.