Red Ferrea del Atlantico

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The private sponsors will rehabilitate and operate the railway linking Bogota, Medellin with the Santa Marta Port for a 30-year period. Dragados (part of ACS Group as of 2003) holds 62% of the project company's shares, while Odinsa holds 18%, the Indian company RITES holds 5%, Tecsa (5%), Nedtrans (5%), Transportes Sánchez Polo (4%) and In-Procarga holds 1% in the Fenoco Consortium. The concessionaire will invest US$ 283 million over the contract period in the rehabilitation/maintenance works. The government is providing a US$ 38 million payment in subsidy to the private sponsors. It is estimated that 20 million tons of cargo will be transported on the railway per year. The operation of the Atlantic railway network was transferred to the private sponsors in March 2000. In December of 2002, government authorities signed an agreement with concessionaire Fenoco committing the 1,500 km Atlantic railroad system to a 2006 operational start. The agreement also addresses the need to refinance the project in the future. In November 2005, the Government wanted to terminate the contract and was considering taking over the concession. In March 2006, after purchasing the concession Fenoco for US $92.5 million, the government restructured it with the following ownership structure: Drummond, Glencore, Consorcio Minero Unido (CMU), Carbones del Caribe, Carbones del Cesar, y Carboandes. The consortium was to receive 50% of the revenues from tariffs and invest US $350 million in the railway.