Issue 16 - September 2007

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Bolivia to re-nationalise railways

Bolivian president Evo Morales promulgated legislation to re-nationalise the two concessions that were awarded in 1996 to Trenes Continentales for the 1244km Oriental (eastern) network and Antofagasta (Chile) for the 1499km Andina network. Railway Gazette International revealed that one of the aims of the US$1.8 million project would be to develop the national railway network for tourism.

(Source: Railway Gazette International )

Public-private partnership in Uruguay

International Railway Journal quoted Mr Antonio Galicchio, president of the Uruguayan State Railway Administration (AFE) saying that public-private partnership (PPP) is an option to provide funding for new rolling stock for cargo transport. Four groups, including international consortia and logistics companies, already pre-qualified for the international tender process, are expected to provide some US$50 million for investment in the new venture. Several other bidders are reported to have been pre-qualified for the US$90 million project to upgrade and maintain 962 km of key routes on the national network.

(Source: International Railway Journal )

First eco train in Japan

The East Japan Railway company (JR East) started operations with the first fuel cell hybrid train on a 49-mile route through a mountain resort area. The company developed and constructed three hybrid railcars (Series E200) with a new reduced environmental impact power, boosting fuel efficiency by 20% and expected to reduce emissions by up to 60% compared to conventional trains.

JR East announced its plans to introduce a new bullet train with a top speed of 320km/h for its Tohoku Shinkansen Line, to cover the distance between Tokyo and Shin-Aomori in less than three hours.

(Source: JR East )

EU environment ministers call for internalising of external costs

EU Environment Ministers called for transparency in transport costs and for speeding up the internalisation the costs of transport. The Community of European Railway and Infrastructure Companies (CER) welcomed the declaration and stressed that “internalisation of environmental and other external cost is vitally important for policies and sectors to be successful and sustainable in the long run”. Johannes Ludewig, CER Executive Director said: “We are looking forward to concrete measures by the Commission to translate the ambitious CO2 reduction targets set by the heads of state and government.”

Earlier this year, on 17 April, the social partners CER, European Rail Infrastructure Managers and European Transport Workers’ Federation (the European arm of the ITF) adopted a joint declaration calling for an acceleration of the EU activities on the internalisation of external costs, seen as crucial for the development of freight transport in the railway sector and for employment.

(Source: Community of European Railway and Infrastructure Companies (CER) )

China to build railways in Libya

The Libyan government signed an agreement with China’s Ministry of Railways for the construction of the first phase of a 191 km track in Libya. China Civil Engineering Construction Corporation will be in charge of the US$477 million contract. A second line is to be built at a later stage, according to International Railway Journal.

Railways Executive Board was created in 2000 as the Libyan national company to study, design and construct the African Railway network, under the Built, Operation and Transfer system. The ambitious 4,800 km Railway Project is a trans-Africa network planned to connect the country with Tunisia, Egypt, Chad and Niger

(Source: International Railway Journal )

Mauritania railway

Mauritania’s capital Nouakchott will be linked with southern phosphate deposits at Bofal through a 460 km railway line. Sudan’s Danfodio Holding and China’s Transtech Engineering signed the US$634 million agreement to build the line that can connect Mauritania to an existing West African rail network covering Senegal, Mali and Burkina Faso. Mauritanian transport minister was quoted by Sudan Tribune saying “this line will open up isolated areas of Mauritania with considerable animal, agricultural and mineral resources."

(Source: Sudan Tribune )

Concession starts in Tanzania

Reli Assets Holding Company (RAHCO) will supervise the transfer of operation from Tanzania Railway Corporation (TRC) to the newly established Tanzania Railway Ltd, a joint venture between Tanzanian government (49%) and engineering consultant and project manager RITES Ltd of India. The 25-year concession agreement follows the viability and marketability study carried out by the US-based International Finance Corporation (IFC), requested to partially finance the process. Railway Gazette International reports that 3,286 TRC employees will keep their jobs with similar terms and conditions after being transferred to the new company.

(Source: Railway Gazette International )

Russian Railways plans

The managing board of Russian Railways (RZD) approved the financial plan and investment programme for 2008 - 2010. Net profit in 2008 is expected to reach 23 billion roubles (US$921 million), rising in 2009 to 33.2 billion roubles (US$1.33 billion) and in 2010 to 51.2 billion roubles (US$2.05 billion). In 2008, freight turnover is expected to be up to 5.9%, while passenger turnover is forecast to increase by 0.6% compared to 2007. RZD will invest an estimated 1296 billion roubles (US$51.92 billion) in the next three years.

(Source: RZD )

Bangladesh modernisation plan

The Asian Development Bank (ADB), the World Bank and the Japan Bank for International Cooperation (JBIC) in collaboration with UK's Department of International Development (DFID) will provide a US$800 million loan for Bangladesh Railway (BR) under the Railway Sector Investment Programme (RSIP), following the agreements signed by the Bangladesh government with the ADB and the World Bank.

The government will contribute around US$144 million to the project aimed at modernising the rail network and improving services provided by the loss-making BR. The international service between Bangladesh and India, which was cut 70 years ago, is expected be restored this year, according to BR’s director general, Mr Mohammad Hossain, cited by International Railway Journal.

(Sources: The Financial Express ; International Railway Journal )

Rio train crash kills eight passengers

A packed commuter train travelling at more than 80km/h collided with an empty train on the outskirts of Rio de Janeiro, killing at least eight passengers, on 30 August 2007. Rescue workers had to cut the twisted metal to free other passengers from the wreckage, however more than 70 people were seriously injured. BBC News reported that, according to the train company Supervia, the driver of the passenger train was injured and sent to hospital.

(Source: BBC News )

If you have any feedback, please contact Gabriel Craciun, ITF Senior Researcher (railinfo@itf.org.uk)

Related documents:
Railway News Issue 16 - September 2007 (30kb PDF)

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