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Colombia advances coal rail project

Steel News - Published on Fri, 25 Mar 2011

The Colombian government will open an international bidding process on a rail project that could facilitate 6 million tones per year of coal shipments by 2013. The project includes construction of the Carare railway and rehabilitation of the existing Central railway into one line.

Mr Jose Gabriel Taboada Carare railway\'s GM told Argus that that the government aims to grant the large international concession next year that will require as much as USD 1.5 billion in investment.

Mr Taboada added that the finished railway will help coal transportation costs fall considerably.

The Central Railway begins in central Colombia and ends in Chiriguana. The government has granted USD 540 million for the line\'s rehabilitation and construction of new stretches. While that line is worked on, the winning bidder can start building the 470km Carare railway, which will originate in the coal rich area of Lenguazaque and another stretch in Duitama until reaching a river terminal near the city of Barrancabermeja.

The Carare line will merge with the Central Railway in La Vizcaina in Santander province. The Carare line alone could transport as much as 10.6 million tonne coal during its initial phase and is expected to enter operation in 2016 or 2017. The line could transport as much as 20 million tonnes in the long term. Some coal would then be switched to barges near Barrancabermeja and shipped on the Magdalena River to ports near Barranquilla, where several companies are developing terminals. The project is a key initiative for coking coal miners that use trucks to transport coal across 1,000 kilometers of mountainous roads to Caribbean ports.

(Sourced from Argus Media)
Posted By : admin on Fri, 25 Mar 2011
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