US$35 million approved for Buenos Aires-Mendoza railway

To support the overhaul of an important section of the Buenos Aires-Mendoza railway, which has been interrupted by problems of hydrological nature since 2001, the Andean Development Corporation (CAF) today approved a US$35-million loan for the Argentine Republic. The line is part of the IIRSA Mercosur-Chile integration hub. The loan will finance the execution of the La Picasa Railway Viaduct Project and support a program to strengthen the railway sector including pre-investment studies, whose total cost is US$51 million. The executing body is the Ministry of Federal Planning, Public Investment and Services, through the Transport Secretariat.

García said that after completion in two years, the project would have a positive impact on the competitiveness of the region, which will be evidenced by a significant reduction of 20 hours in travel time along one of the most economically important lines in Argentina. The improvements will also cut operating costs and lower fares, which is expected to result in an immediate 15% annual increase in the volume of cargo carried.

The reduction of travel times and the improvement in the quality and safety of the transport service will permit the reopening of the passenger rail service between Retiro and Mendoza. Environmentally, the project will conserve the fish fauna, the balance of surface drainage and plant cover, as well as improving the health and safety of the staff.