Red Ferrea del Pacifico

distressed

The private sponsors will rehabilitate and operate the railway linking Buenaventura to La Felisa for a 30-year period. Sacyr held 50% of the project company's shares. The concessionaire will invest US$ 200 million over the contract period in the rehabilitation/maintenance works. The government is providing four annual US$ 30 million payments in subsidy to the private sponsors. It is estimated that 1.2 million tons of cargo will be transported on the railway per year. The operation of the Pacific railway network was transferred to the private sponsors in March 2000. In 2002, there was a change in the ownership structure of the project. Sacyr and ACS left and Castro Tcherassi and Equipo Universal increased their stakes to become the main shareholders. In 2006, the Colombian ministry of concessions (INCO)decided that the current arrangement could not continue and will either terminate or restructure the contract. The train was not performing to capacity nor attracting the investment needed to expand its capacity. The government was expected to make a decision in April 2007. http://www.mintransporte.gov.co/Ministerio/Old/DGTFM/concesion_red_pacifico.htm