Colombian rail revival gets $300 m push for green growth

The Colombian rail renaissance gets added impetus with CAF’s approval to provide a loan of $300m to revive rail transport and foster sustainable transport initiatives that increase competitiveness and reduce greenhouse gas emissions.

This is reported by the railway transport news portal Railway Supply.

Colombian rail revival transforms national transport sector prioritization

The Colombian government is moving ahead with plans to revitalize the rail sector through the Colombian rail revival project. The project seeks to improve the country’s rail transport infrastructure and lower transportation costs.

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A $300 m loan finances the Railway Reactivation, Sustainable Mobility & Logistics Efficiency Programme with the aim of making national infrastructure more attuned to low-carbon and inclusive economic growth visions. The credit will enable the transition of the Colombian economy from the current road-based one to multimodal transport.

As road freight accounts for 75% of the domestic logistics market, supporting this new scheme is encouraging more freight transport by rail to improve trade and energy resilience. The aim is to lower accident rates and increase freight capacity on key corridors.

Colombian rail revamp promotes sustainable transport

The government will establish a National Railway Agency to ensure coordination and reform of policies and laws. The National Planning Department will be responsible for managing cooperation in the technical areas among ministries and provinces.

At the same time, CAF funding will improve the transport networks in cities. The development already taking place in Bogotá with electric buses shows that there is already progress, but other cities are still lagging behind.

CAF Executive President Sergio Díaz-Granados stated that “This project encourages ‘a comprehensive vision that reactivates rail as the backbone of intermodality.’” The development of sustainable logistics means that the country will be better integrated with international supply chains.

The loan will also boost international confidence in the Colombian government’s infrastructure plans. It has been suggested that this project might be taken as an example in terms of sustainable development within Latin America.

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