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Villavicencio – Puerto Gaitán Railway Line, Meta

The Villavicencio – Puerto Gaitán Rail Corridor project aims to develop a mixed-use (freight and passenger) rail connection between Villavicencio and Puerto Gaitán, strengthening the logistics integration of the Orinoquía region with national and international markets. The initiative involves the construction and operation of 193 km of rail network, boosting regional competitiveness, reducing logistics costs, and promoting a sustainable, intermodal transport system.

Summary


Objective

Build a standard-gauge rail connection for freight and passenger transport between Villavicencio and Puerto Gaitán, consolidating Villavicencio as a national logistics hub and Puerto Gaitán as an intermodal freight-transfer platform, while ensuring the project's technical, operational, and financial viability.

Key Goals

  • Structure the entire 193 km railway corridor.
  • Meet the pre-investment timelines (7 and 10 months).
  • Contribute to the national target of structuring or awarding 1,817 km of rail lines.
  • Consolidate a strategic freight and passenger corridor in the Orinoquía region.

Market Opportunity

The corridor responds to the growing need to efficiently move agro-industrial, mining, and hydrocarbon products from the Orinoquía region to national ports. There is currently a significant deficit of active rail infrastructure and limited integration with other transport modes, making this project a strategic solution for improving the country's logistics competitiveness. In addition, the project was prioritized as a strategic corridor in the 2023 Multi-Year Investment Plan and is backed by Law 2294 of 2023.

ESG Considerations

Environmental: Reduction of polluting emissions through strengthened rail and intermodal transport.

Social:

  • Job creation during construction and operation.
  • Strengthening of food security, social justice, and economic development in the Orinoquía region.

Governance:

  • Clear definition of institutional responsibilities.
  • Transparency in infrastructure management and the corridor's future operation.

Financial Indicators


Estimated CAPEX

COP $16.6 trillion

Revenue

From rail freight transport

Logistics and storage

Services

Intermunicipal

Passenger transport

Public-private financing scheme

Underpinned by rail tariffs

Project Schedule


Feasibility Closure

Duration: 6 months.

Engineering and Permitting

Duration: 24 months.

Structuring and Financial Close

Duration: 6 months.

Construction

Duration: 36 months.

Operation

Duration of the concession.

Business Model


Key Partners

  • National Infrastructure Agency (ANI)
  • Ministry of Transport
  • Cormacarena
  • Government of Meta Department
  • Municipalities of Villavicencio, Puerto López, and Puerto Gaitán

Key Activities

  • Pre-feasibility and feasibility studies.
  • Land acquisition and permitting.
  • Infrastructure construction.
  • Corridor operation.

Value Proposition

  • Freight and passenger rail transport with lower logistics costs.
  • Increased competitiveness for the agro-industrial, mining, and industrial sectors.
  • Strategic project for national logistics integration.

Customer Segments

  • Large industrial companies.
  • Agro-industrial producers.
  • Mining companies.
  • Population of the benefiting municipalities.

Revenue Streams

  • Rail transport tariffs.
  • Intermodal services.
  • Passenger transport.

Cost Structure

  • Debt service.
  • Maintenance of infrastructure and rolling stock.
  • Rail operating costs.

Risk Plan


Event Probability Impact Rating
Socio-environmental risks Low Medium Low
Delays in permitting and land acquisition Medium High High
Community blockades Medium Medium Medium
Business stability and viability Low High Medium

 

USD $5.31 billion

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