Commuter Train - Valle del Cauca

Comprehensive urban project within the ‘Green Corridor’ that links a regional mass transport system with urban renewal, green areas, public spaces and facilities, restoring the old railway line.

Summary

Objective

Implement an efficient, environmentally sustainable mass transit system that connects the region, improves mobility and competitiveness of the City-Region, and promotes transit-oriented urban renewal.

Key Goals

Prioritized section Cali–Jamundí (23.14 km): advance from feasibility to bidding, detailed engineering, and construction.
Sections Cali–Yumbo, Palmira–Cali Central, and Airport Branch: move from prefeasibility to feasibility.
Build 73.4 km of the system (three lines) with 47 stations.
Restore the old railway corridor and integrate green areas, public space, and facilities.

Market Opportunity

33% reduction in travel times and traffic accidents; one million people benefited; integration with densification and urban renewal processes in the 'Green Corridor'; high potential demand in the Cali–Jamundí, Cali–Yumbo, and Palmira–Cali Central axes.

ESG Considerations

Environmental: Reduction of 1.2 million tons of CO₂; integration of green areas and public space; compliance with environmental licenses and permits.

Social: Reduction in road accidents; direct job creation; prior consultations and compensation agreements implemented by the private partner according to contractual obligations; resettlements managed by the operating entity.

Governance: Participation of national, regional, and local governments and private partners; supervision by ART; structuring by FDN; bidding and concession processes under Law 80.

Financial Indicators

IRR

N/A (no returns calculated yet).

NPV

N/A (detailed financial projections to be defined during feasibility).

Project Timeline

Prefeasibility

Duration: 24 months

Feasibility

Duration: 36 months

Detailed Engineering

Duration: 19 months

Construction

Duration: 56 months

Business Model

Key Partners

National Government; Government of Valle del Cauca; Municipalities of Cali and Jamundí; Private Partner.
Structuring: FDN (Executing Agency).
Governance/Supervision: Regional Transport Authority – ART (RPG-ART-ASOVC), Government of Valle, Municipalities.
Managing Entity: SITREN GV S.A.S.
International Partners: British Embassy in Colombia

Key Activities

Prefeasibility, feasibility, and detailed engineering studies.
Bidding, construction, and commissioning through concession.
Operational integration with existing systems (e.g., MIO).
Land, social, and environmental management.

Value Proposition

Regional railway system that reduces travel time and accidents, improves air quality, stimulates urban development, and strengthens the City-Region’s competitiveness.

Customer Segments

Mass transit users in the City-Region (Cali, Yumbo, Jamundí, Palmira).
National and regional governments as promoters and funders.
System operators and integrations (e.g., MIO).
Local communities benefiting from connectivity and urban renewal.

Revenue Streams

System fare revenues.
Concession under Law 80 (payments for works and operation).
Complementary PPP (Pan American Parking) for financing/maintenance support.
Contributions from the national and regional governments.

Cost Structure

Studies, design, and detailed engineering.
Land, social, and environmental management.
Construction, operation, and maintenance of the system..

Risk Plan

Event	Probability	Impact	Rating
Demand/fare revenues	N/A	N/A	N/A
Construction timeline and interface integration	N/A	N/A	N/A
Licenses and permits (non-environmental/social/heritage)	N/A	N/A	N/A
Land availability and acquisition	N/A	N/A	N/A
Social – agreements/compensations (prior consultations)	N/A	N/A	N/A
Social – resettlements	N/A	N/A	N/A
Maintenance and operation costs	N/A	N/A	N/A

COP $10.790 Billion

STATE: In search of investment

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