RAILWAYS II

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The objective of the Second Railway Project is to strengthen FA through rationalization of its system, rehabilitation of its track and equipment and improvement of its management to enable FA to concentrate on traffic for which it has a competitive advantage. These measures should reduce, and eventually eliminate, FA's financial dependency on the Government. The project comprises a number of subprojects which are expected to begin in 1979 and 1980, as follows: (a) rehabilitation of track, bridges and communications, and partial track renewal of main lines; (b) purchase of line and shunting locomotives, passenger coaches and specialized wagons; (c) rehabilitation of wagons, purchase of spare parts for wagons and locomotives, and modification of existing box cars; (d) technical assistance and studies. Benefits arise from cost reductions because of improved equipment and facilities and from the railways carrying traffic which otherwise would have been moved by road at a higher cost to the economy. Unquantified benefits include the advantages of more reliable and faster service to shippers and passengers. The project faces no special risks.