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"We need to increase demand to make the trolley feasible"

Bernardo Küpfer

General manager/Enea

Published  Friday, October 2, 2009

Since 1996 Chilean firm Enea, a subsidiary of energy holding company Enersis, has been developing its industrial park near capital Santiago's international airport. In addition to the industrial park, the firm has been working on a trolley system to connect the airport to the city's metro network.

BNamericas spoke with Enea's general manager Bernardo Küpfer to find out more about this project and what is needed to make it a reality.

BNamericas: What is happening with Enea's project to develop a trolley system to connect Santiago's metro to the airport?

Küpfer: We inaugurated a park network in July called Los Maitenes park system which is related to this process. We still have to specify how to connect the Las Barrancas metro station, on line 5, to the airport. Along that route, Enea owns a large area that makes up 65-70% of what will become the trolley line and the park system has helped us establish the area along which the line will be built. The park was financed by Enea and Spanish logistics firm Abertis Logística.

At the same time, Santiago's airport continues to move forward with its master plan. Studies are being carried out by the public works ministry [MOP] and other entities to structure the airport's future territorial plan. From what we have discussed with MOP and other entities, this proposal will incorporate the trolley so that both initiatives are compatible. We have discussed the project with them and with [state-owned rail firm] Metro de Santiago in coordination meetings.

On the other hand, in terms of demand for the project - between those that use the airport and public transport travelers that would use the trolley - the demand is too low to make the project financially feasible. Therefore, we need to increase demand to make the trolley feasible.

BNamericas: How do you plan to do that?

Küpfer: One of the issues we're working on with housing and urbanization [Minvu] minister Patricia Poblete is the use of the land in the area known as Enea-PDUC [conditioned urban development project], which comprises 400ha that are currently designated as rural, but that are being re-designated so that construction can be carried out there. This would attract another100-120 industrial facilities into the area.

A mall, promoted by Chile's Cencosud investment group, will also be developed in the area. Abertis will develop a logistics center in the area as well, and about 7,000 new homes will be built in the western sector, near the Ruta 68 highway, which connects Santiago to cities Valparaíso and Viña del Mar.

If you add all of the users that these initiatives will bring to the area with those that already live there, about 18,000 people, the project becomes feasible.

BNamericas: Have any other firms expressed interest in the project?

Küpfer: Yes, and in addition one must think of the companies that will become interested in other PDUCs in the area and that will want to use the road and transport network developed in this project.

We have also received complementary study proposals that we are revising and working on. One of them, for instance, is related to a French operator that is currently advising MOP on the airport project.

BNamericas: In the past, you announced that the firm expected to submit the project to MOP by end-2007. What caused the delay?

Küpfer: It's very simple: the pre-feasibility studies we carried out made it clear to us that we needed more demand. There is no use in talking with operators and equipment and technology providers if the project's prefeasibility is unclear.

Now, for initiatives of this type, one of the most interesting formulas is to carry out a tender process, and from that point of view we are interested in the initiative being declared of public interest so it can be concessioned.

BNamericas: When do you expect that to happen?

Küpfer: That will be analyzed by authorities. We have discussed this issue with Metro de Santiago, but obviously the speed and priority of Enea's interest is related to increasing the area's land use so that it can grow and lead to the development of the trolley, with sufficient demand for the project.

Then there is the financing issue. The most probable scenario is that this will be decided through a tender process. The economic analysis will determine a model so that the project will finance itself, like any other concession.

BNamericas: So you believe in the project's feasibility in spite of the delays?

Küpfer: Yes. It's a very strategic spot because it has to do with connecting the metro to the airport with a trolley, so we believe the project is – or will be – financially sustainable once the land use is changed and the projects for the area become a reality. That explains why we reduced the speed of the studies and have taken longer to submit the proposal to MOP.

BNamericas: Is there a date by which you expect to begin further works on this project?

Küpfer: We expect to launch the first stages of the project by year-end, when the land will be re-designated by Minvu. By then we do expect the project to become a strategic priority and to begin moving forward in early 2010.

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