The local government of Lima is analyzing the possibility of connecting the country's Ferrocarril Central rail system to the city's projected wholesale market center, in district Santa Anita, state news agency Andina reported.

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Construction of a rail line would reduce transport costs by 50% for agricultural products brought to the city from the mountain region, the report said.

The city is analyzing the initiative through the municipal market company EMMSA and talks with concessionaire Ferrocarril Central Andino (FCA), which handles the rail system, have already begun, EMMSA's general manager Luis Baca Sarmiento was quoted as saying.

The first construction phase of the city's wholesale market area is scheduled to launch in July or August of this year. The market will handle the food products to be consumed by greater Lima's 8mn inhabitants. This phase will cost about US$12mn.

The second phase will require an investment of US$20mn and is expected to be ready by July 2009.

Complementary services call for a private investment of US$80mn, said Baca Sarmiento, who did not specify the possible cost of the rail system in the report.