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The
Costa Rican Railway Institute
estimates the project to be
worth $450 million.
/ Costa Rican Railway
Institute courtesy photo.
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Government
declares $450 million electric
cargo train as Public Interest
By the A.M. Costa Rica staff
Friday, President Carlos Alvarado,
and the Minister of Public Works
and Transportation, Rodolfo
Méndez-Mata, signed a declaration
of Public Interest on the electric
cargo train project. The Costa
Rican Railway Institute estimates
the project to be worth $450
million.
"With this decree, all public
institutions commit themselves to
the Costa Rican Railroad
Institute, to fulfill their
duties, to guarantee the timely
and efficient implementation of
this project," said the Government
in its statement.
According to the government, the
electric cargo train will be used
to improve the transport of
imports and exports, between the
province of San Jose and the
Atlantic zone.
The declaration also authorizes to
the ministry to require new areas
for construction of rails should
they deem it necessary.
Among the benefits of this freight
train service are the
modernization of rail freight
transport with clean and renewable
energy and decongestion of the
traffic on Route #32 (from San
Jose to the Atlantic area), said
the government in its statement.
The electric cargo train "seeks to
promote the transport of cargo
through the railway with a clean
and renewable energy source,
lessen the amount of traffic on
Route # 32 and boost the economy
of the Atlantic Region," said
President Alvarado.
According to the Costa Rican
Railway Institute, the project is
being analyzed for feasibility.
Related to the feasibility study,
in December, a loan of $750,000
was signed between the Costa Rican
Railway Institute, know as
Incofer, and the Central American
Bank for Economic Integration,
CABEI, to finance the study for
the installation of an electric
cargo train in Limón.
The President of Incofer,
Elizabeth Briceño and the
representative for CABEI, Ottón
Solís signed the agreement. The
signing was witnessed by President
Alvarado.
Otton Solís, who represents the
country in the CABEI, was a deputy
from 2014 to 2015 and represented
the government party: Citizens'
Action Party, known as PAC.
A feasibility study aims to
objectively and rationally uncover
the strengths and weaknesses of an
existing business or proposed
venture, including opportunities
and threats presented in the
natural environment, the resources
required to carry through with the
project, and the prospects for
success. In its simplest terms,
the two criteria to judge
feasibility are the cost required
and the value to be attained.
The estimated cost of the study is
$750 thousand of the total budget
of $450 million.
But in June, the Institute
announced the consortium between
two companies, Audintraesa from
Spain and Audingmex from Mexico,
was chosen to work on the
feasibility study.
Both companies charged together
$595,901, approximately $154,000
less expensive than the Institute
budget.
The Institute says the electric
cargo train will travel around the
cities of Valle de la
Estrella*, Limón*, Río Frío*,
and Chilamate*.
It should be ready in the second
half of 2020.
The Costa Rican Electricity
Institute, known as ICE, will be
in charge of building the wiring
needed to provide electrical power
to the train.
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Is $450 million a reasonable
investment for an electric cargo
train? We would like to know your
thoughts on this story. Send your
comments to news@amcostarica.com
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