International
Colombia receives $300 million loan to promote railway revitalization
Seetao 2025-10-22 10:11
  • The plan aims to reduce logistics costs, enhance economic competitiveness, and promote the transformation of green transportation
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To activate the potential of railway transportation and improve national logistics efficiency, the Development Bank of Latin America and the Caribbean recently approved a loan of $300 million (approximately 3 billion Colombian pesos) to the Colombian government, specifically to support the country's railway revitalization, sustainable transportation, and logistics efficiency plans. The plan aims to systematically address the long-term low utilization rate and imbalanced freight structure of Colombia's railway network, and promote the transformation of the transportation system towards a more efficient and sustainable direction.

According to data from the Colombian National Railway Company, over 70% of the country's freight volume currently relies on road transportation, and the proportion of railways in the overall logistics structure is severely low. This structure not only increases overall logistics costs, but also weakens the competitiveness of Colombian products in the international market. Therefore, the Colombian government has listed the reactivation of the national railway system as one of the key goals during President Gustavo P é tro's tenure.

The plan revolves around three core directions:

Mechanism construction: Promote the establishment of the National Railway Administration, modernize the railway legislation and regulatory system, and provide institutional guarantees for the operation and management of the railway system;

Technological upgrade: Promote the application of clean technology in the railway system, including the promotion of electrification technology in urban and regional transportation;

Sustainable development: Enhance the financial sustainability of the railway system and establish an operational model for long-term sustainable development.

In August 2025, the Colombian government announced six priority railway projects with an estimated total investment of 94 trillion pesos (approximately 24.2 billion US dollars), including:

Transoceanic Corridor

Pacific Operation (Yanbian Kaimarito)

Pacific Corridor (Buena Vista Palmyra)

Villavicencio Puertargaitan

Bogota Region - Central Railway Corridor

Bogota Belencito Corridor

At present, the National Infrastructure Administration has issued feasibility study tenders for two key corridors:

Bogota Central Railway Corridor: with a total length of 393 kilometers and a feasibility study budget of 91.2 billion pesos;

The Buenaventhal Palmyra Corridor is 120 kilometers long with a research budget of 53.3 billion pesos.

According to the schedule, the bidding will open on November 6th, and the contract is expected to be signed before December 23rd. Keywords: foreign construction news, international news

The loan from CAF not only injects key funds into the Colombian railway system, but also marks the substantial progress of its railway revitalization plan. By optimizing the freight structure and increasing the proportion of railway transportation, Colombia is expected to significantly reduce logistics costs, enhance economic competitiveness, and promote green transportation transformation in the coming years, laying the foundation for achieving sustainable development goals.Editor/Cheng Liting

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