Colombia plans to award PPP contract for US$600mn rail corridor in March

Colombia's national infrastructure agency (ANI) plans to award the 10-year PPP contract to build, operate and maintain the La Dorada-Chiriguaná freight rail corridor on March 20.

The contract will be signed within 10 working days following the award, as outlined in a resolution issued by the transport ministry on Tuesday.

The planned investment for the project is approximately US$600mn, with operational expenditures estimated at US$172mn.

The rail corridor runs between La Dorada in Caldas department, around 120km northwest of capital Bogotá, and Chiriguaná in Cesar department in the north, along with branch lines.

The deadlines for submitting bids and awarding the project have been revised multiple times.

The 526km corridor is considered the backbone of Colombia's railroad reactivation plan, serving as a strategic link between the country's interior and the Caribbean region.

The pre-construction phase is expected to take 15 months, followed by a 49-month phase of construction and restoration works, since much of the corridor already exists but has fallen into disuse. The operation phase will last 50 months and then it will take six months to prepare the handing over of the corridor to state control.

According to ANI, the corridor is expected to reduce transport costs on the route by approximately 20% and facilitate intermodal connections with highways and other rail lines.

The La Dorada-Chiriguaná railroad primarily transports construction materials such as cement and steel, as well as raw materials for ceramics and paper manufacturing. Other goods transported include coffee, cocoa, fertilizers and food products.

The works

The contract encompasses all activities required for financing, property management, social and environmental management, detailed studies, construction, rehabilitation, improvement, operation and maintenance of the corridor and its branches.

The scope of work includes the reinforcement of 22 bridges and maintenance of an additional 76, as well as the upkeep of 1,480 water control structures.

Planned facilities include a cargo transfer center, an administrative building and an operations control center. Complex repair workshops will be built in Barrancabermeja, along with a minor repair workshop in Chiriguaná. The project also includes repairs to 28 stations.

Additionally, 200km of line will be upgraded, replacing the current 75 pounds per yard (lb/y) rails with heavier duty 115lb/y rails.

The planned rolling stock includes four locomotives, with an optional fifth offered as a quality incentive for bidders. There will also be 93 platforms with an estimated annual load capacity of 2.8Mt and 69 gondola cars.

The project includes the construction of a pedestrian and road bridge over the Soganoso river and the relocation of two educational institutions.