COLOMBIA: Latin America and Caribbean development bank CAF has approved a loan of up to US$300m to support the Railway Reactivation, Sustainable Mobility & Logistics Efficiency programme which aims to transform Colombia’s transport infrastructure as part of a move toward more sustainable, inclusive and efficient models.
The programme includes reactivation of the railway system, electrification of public transport and the reduction of logistics costs, with the aim of strengthening the country’s competitiveness and ‘significantly’ reducing carbon emissions.
The programme includes support for the comprehensive modernisation of the regulatory and institutional framework of the railway sector, including the establishment of a National Railway Agency, updating laws and decrees and prioritising strategic projects. This will be accompanied by action to strengthen urban and regional public transport by incorporating clean technologies and improving financial sustainability.
The National Planning Department will act as technical co-ordinator for the different entities involved in the programme.
Structural challenges
The programme aims to address structural challenges facing the transport sector in Colombia, where the rail network is underutilised and most freight goes by road. CAF said this creates high costs which affect national competitiveness, and contributes to high road accident rates with serious economic and social consequences.
In urban areas, the transition to clean public transport technologies is progressing unevenly and concentrated mainly in the capital Bogotá, with other cities requiring support to modernise their fleets and improve the quality of service.
‘We are backing a comprehensive vision that will reactivate rail transport as the backbone of intermodality, promote the electrification of public transportation, and reduce the logistics costs that today limit the country’s competitiveness’, said CAF Executive President Sergio Díaz-Granados on October 10. ‘It is a commitment to territorial connectivity, social equity and environmental sustainability that will transform the way Colombia moves and connects with the world.’
- Learn more: Subscribers can read an in-depth article on the rehabilitation of the Colombian rail network from the August 2023 issue of Railway Gazette International.
