Tuesday, October 21, 2008

Privatization - Colombia - Ferroviario Central rail concession tender to be launched by end-November

Colombia's concessions authority Inco will launch the bidding process to award the Ferroviario Central cargo rail network by end-November, an Inco official told BNamericas.


The tender was slated to be launched in October but has suffered a number of delays, as authorities are still fine tuning the concession contract, the official added.

The project to connect the country's central area to Santa Marta port on the Atlantic coast will require an estimated 894bn pesos (US$409mn) and be concessioned for a 30-year period.

The initiative, also known as Magdalena Medio, consists of a stretch connecting Chiriguaná (Cesar department) to district La Dorada (Caldas department), and connecting the latter to Villavieja (Huila department).

The system will also be complemented by a stretch from Puerto Berrío to Envigado (Antioquia department), connecting the line to the Antioquia railway.

The concession is part of a major government plan to rehabilitate and expand the country's rail network to reduce transport costs, and boost productivity and trade, national planning department (DNP) head Carolina Rentería told BNamericas.

The rail system will handle containers, cereals, coal, cement, steel, paper and cardboard, among others.

The tender process will take some six months to complete and the system will be awarded during the first half of 2009.



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