Peru to focus on Inca and Grau rail projects

Peru’s transport and communications ministry (MTC) will sharpen the focus on the Inca and Grau railway projects.

Transport minister Juan Silva (pictured) has urged the congressional budget committee to approve funds even though the railways were not part of the ministry’s budget demands.

"What happens is that the budget project was prepared in June, when the [new] government had not assumed functions," Silva said.

It is expected that funds for both projects’ profile studies will be included in the final version of the ministry’s 2022 budget, which congress approves at the end of November. Studies will determine if the lines are for passengers, freight, or both, a ministry source, requesting anonymity, told BNamericas. 

President Pedro Castillo promoted the Inca train as a key government project during his inauguration speech in July. The train will run between Cajamarca and Puno and the Grau train along the coast, between Tumbes and Tacna.

Peru has a short-term railway infrastructure deficit amounting to 20.4bn soles (US$6.12bn) and 161bn soles in the long term.

According to regulator Ositran, four railway concessions have been granted, for terms of  30 to 40 years. The Ferrocarril del Centro freight concession is run by Ferrovías Central Andina, Ferrocarril del Sur y Sur-Oriente (freight and passengers) by Ferrocarril Trasandino, and Lima’s metro Line No. 1 by GYM Ferrovías.

Lima’s metro Line No. 2 is under construction and concessioned to the Metro de Lima Línea 2 consortium.

On the other hand, investment promotion agency ProInversión has not been successful in concessioning the US$232mn Huancayo-Huancavelica railway, which links the two cities in the central highlands.

At the last auction in April, only one pre-qualified bidder submitted an offer, but since at least two participants were required under the terms, the tender was declared void.

The ministry is also working on the 18.2bn-sol (US$4.56bn) railway to link San Juan de Marcona port, in Ica region, and Andahuaylas in Apurímac region. The project profile study is due to be completed by year-end.

The line will transport production from the southern mining corridor and a 342km branch to Las Bambas copper mine was added to the 577km stretch.