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Thursday, January 14, 2010
Today's News Headlines
* EFE launches tender for studies on Arica-La Paz rail line rehabilitation - Chile
* New administration to resolve railway rehabilitation - Uruguay
* Fomilenio to award Longitudinal del Norte tender next week - El Salvador
* EFE to invest US$120mn this year - Chile
* International aid pours in following earthquake, airport shut down - Haiti
* Roundup: Corpac buys radars, Jorge Chávez airport expansion, Cuzco night flights - Peru
* Govt to review railway concessions - Brazil
* Work to begin on Pisco airport expansion this year, says MTC - Peru
* Calderón opens Anzaldúas international bridge - Mexico
* La Unión port to start operations in April - El Salvador
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* EFE launches tender for studies on Arica-La Paz rail line rehabilitation - Chile
Chile's state-owned rail firm EFE has launched a tender to determine the detailed engineering required to rehabilitate the Chilean stretch of the Arica-La Paz (FCALP) rail line, an EFE official told BNamericas.
Companies interested in taking part in the process must submit offers by January 22. Technical bids will be reviewed on the same day, while financial offers will be reviewed on January 28.
The awardee is scheduled to be announced on February 2.
The move follows the failure of two tenders to carry out the rehabilitation works after companies presented offers well above the official price-tag.
These studies will help EFE determine precisely what is needed to rehabilitate the line up to a class B standard according to internationally recognized quality standards, said the official.
The Chilean stretch of the railway connects northern port city Arica to district Visviri, on the border with Bolivia, along 206km with 18 stations.
FAILED TENDERS
Chile's state-owned Arica port administrator EPA, which is also responsible for administering the line, launched two tenders for its rehabilitation last year. The first was declared void in June and the second in December.
The second tender attracted the same three bidders as the first: Comsa Chile, Azvi Chile and Tecdra. However, the companies submitted offers of over US$45mn, well above the US$32mn budget set by the government for the works.
It was then decided that EFE would take over the tender process. Once the detailed engineering studies are carried out, EFE will launch a new tender and plans to invite Comsa Chile, Azvi Chile and Tecdra to take part, the official said.
The delays experienced in the rehabilitation process have pushed back the state's plan of having it ready to resume operations in 2011.
Authorities have yet to determine whether the line will be operated by the state or by a private concessionaire.
The Arica-La Paz line's Bolivian stretch - connecting Visviri to capital La Paz - runs 234km and is said to be in good condition.
The rehabilitation of the railway will help boost activity in Arica port, which saw a reduction in cargo handling when the line stopped working in 2005, after its Bolivian operator declared bankruptcy.
Once operations are resumed, the rail line is expected to transport 180,000-250,000t/y of cargo.
By Eva Medalla
Business News Americas
* New administration to resolve railway rehabilitation - Uruguay
Uruguayan president-elect José Mujica's administration will be the one to decide how to proceed with the rehabilitation of 414km of railways, an official from the rail line's concessionaire Corporación Ferroviaria del Uruguay (CFU) told BNamericas.
CFU, whose shares are fully owned by the Uruguayan state, was created to speed up the rehabilitation and expansion of the country's rail network.
State-owned rail firm AFE representatives expect the transport and public works ministry (MTOP) to make a decision regarding the rehabilitation of the railways before the second half of this year, the official added.
The tender process was put on hold after the offers presented by Chilean consortium Icil Icafal-Tecsa and Spanish consortium Hispánica-Monalisa were above the official budget.
AFE, CFU and other government representatives have already met with some members of the new administration to discuss the project in order to provide all the information necessary for the incoming authorities to make a final decision, the official said.
Mujica will take office on March 1, succeeding President Tabaré Vázquez. Both Vázquez and Mujica belong to the left-wing party coalition Frente Amplio.
By Eva Medalla
Business News Americas
* Fomilenio to award Longitudinal del Norte tender next week - El Salvador
Fomilenio, the El Salvadorian chapter of the US Millennium Challenge Corporation (MCC), expects to announce by early next week the awardee of the contract to build section 6 of the Longitudinal del Norte highway, also known as CA-3, a Fomilenio official told BNamericas.
A total of 30.4km are to be built between Barrios and Osicala in San Miguel department, and from Delicias de Concepción to Cacaopera, both in Morazán department. Construction is planned to be completed within 660 days.
This week Fomilenio opened the six financial bids presented in the tender. The lowest offer was made by Costa Rican construction firm Meco with US$23.1mn, with the highest offer presented by Constructora Santa Fe de Centroamerica (US$31.0mn). The other participating firms were Topsal (US$30.4mn); Swiss group SBI International Holdings (US$28.4mn); the Central American branch of Spanish FCC (US$26.4mn); and the El Salvadorean branch of Italian Astaldi (US$27.2mn).
The complete Longitudinal del Norte highway, which will be 290km long, will connect El Salvador's northern region with the rest of the country before 2012. It will benefit over 63,000 people.
Works for its development are valued at US$234mn, donated by MCC. A total of US$102mn have already been used in the construction of 72.1km.
By Indiana Corrales
Business News Americas
* EFE to invest US$120mn this year - Chile
Chile's state rail company EFE plans to invest at least US$120mn this year to improve its rail network and services, a company official told BNamericas.
The investment is part of the company's 2008-10 development plan, which will total around US$292mn, the official said.
While the price-tag could decrease due to fluctuating exchange rates - the value of the US dollar has declined over the last year in Chile - the change will not be dramatic, the official added.
Projects include the rehabilitation of principal and secondary rail lines; the repair and maintenance of rail bridges; improving communications, signaling and safety standards; and feasibility studies to analyze new initiatives.
The firm will also invest in works to improve cargo handling along the line leading to San Antonio port and the San Rosendo-Puerto Montt line, among others.
EFE's development plan also included the rehabilitation of the Arica-La Paz railway, scheduled to be carried out this year. However, the project has suffered a number of delays and a second tender for its rehabilitation was declared void. The company is currently holding a tender to hire a firm to draw up detailed engineering studies for the project, so the initiative has no set date, according to the official.
By Eva Medalla
Business News Americas
* International aid pours in following earthquake, airport shut down - Haiti
A 7.0-magnitude earthquake that shook the Haitian capital city Port-au-Prince on January 12 has devastated the city and caused widespread damage to buildings, houses, roads and bridges.
It is still too soon to estimate the extent of the damage or the number of people affected, but reports fear the death toll might be in the thousands.
In response, countries and international entities are offering humanitarian aid and financial support. IDB has approved a US$200,000 grant for emergency assistance.
"We are monitoring these events very closely and stand ready to help Haiti address this catastrophe. In coordination with the Haitian government, we will redirect our uncommitted portfolio to provide additional reconstruction resources at this moment of dire need," IDB president Luis Alberto Moreno said in a statement.
"We are working with other donors to exchange information and coordinate response activities. The IDB and its staff express their solidarity with the people of Haiti."
The IDB resources will be used to provide food, potable water, medicines and temporary shelter to the victims.
At the same time, the World Bank, whose local offices were destroyed by the earthquake, is ready to mobilize a team to help assess damage and losses and plan recovery and reconstruction.
"The bank stands ready to help with financial assistance," World Bank president Robert Zoellick said in a release.
European countries such as the UK, Spain, Germany and France have pledged their support and assistance. Other countries including Mexico, Canada, the US, Venezuela, Panama and the Dominican Republic have also guaranteed humanitarian aid.
Haiti is the poorest country in the western hemisphere and has suffered a number of recent natural disasters, including four hurricanes and storms in 2008 that killed hundreds.
AIRPORT ACCESS
Port-au-Prince international airport suspended operations after the earthquake, a Caribair airline official told BNamericas.
"The airport's control tower is badly damaged and only private flights are travelling to the island," the official said.
Caribair, one of the main carriers operating between the Dominican Republic and Haiti, has cancelled all commercial operations and is currently only operating private flights.
Other airlines, such as like American, Spirit and Delta, have also cancelled their flights, according to reports.
In the meantime, people are travelling to the Dominican Republic and trying to get to Haiti by bus.
The resumption of operations at the Port-au-Prince airport is critical to the aid effort.
By Indiana Corrales
Business News Americas
* Roundup: Corpac buys radars, Jorge Chávez airport expansion, Cuzco night flights - Peru
Peru's national airport and civil aviation authority Corpac has purchased eight new radars worth US$34mn, which will allow the authority to increase its monitoring of national airspace from 4 to 84%, according to the transport and communications ministry (MTC).
The radars were provided by Spanish IT systems integrator Indra, after an international tender was carried out by the International Civil Aviation Organization (ICAO).
The new equipment will be installed at airports in Lima, Cajamarca, Ayacucho, Talara, Iquitos, Pucallpa, Cuzco and Arequipa, and is expected to be fully operational by end-2011.
***
MTC expects to expropriate more than 80% of private land next to capital Lima's Jorge Chávez international airport to make way for the construction of a second runway by March, according to transport minister Enrique Cornejo.
The land will be transferred to airport concessionaire Lima Airport Partners (LAP), which has a contract to carry out expansion and improvement works on the airport.
The expansion project is scheduled to be completed by 2014, and is expected to increase the number of international passengers making stopovers at the airport by 30%, government news service Andina reported.
***
Cuzco's Alejandro Velasco Astete airport will begin operating at night as of March, MTC announced.
Airline Lan Peru is investing US$500,000 in a temporary lighting system, which MTC will replace with a more permanent solution later this year.
Rehabilitation work on the airport's runway and other facilities will begin over the next few weeks in preparation for the beginning of nocturnal operations, according to Cornejo.
The improvements will cost some 60mn soles (US$20.8mn), BNamericas reported previously.
By Business News Americas staff reporters
* Govt to review railway concessions - Brazil
Brazil's federal government will review its railway concession model to make better use of railroad networks and extend concession periods, news service Agência Estado reported.
In addition to its small size (28,000km), the railway network is under-used, according to national ground transport agency ANTT.
"Only 10% of railroads (3,000km) are in full use," ANTT director Bernardo Figueiredo was quoted as saying in the report.
Another 7,000km are operating below capacity and 18,000km are well under-used.
One of the main objectives of the changes is to put abandoned or low-capacity stretches back into operation, the report said.
Among the revisions under consideration is the concession of certain stretches.
Current concessionaires will have the option to continue operating the stretches or to return them to the government.
If the company continues to operate a concession, it will have to maintain the infrastructure. Rehabilitation of all stretches must be carried out so that it is available for use, according to Figueiredo.
"We cannot continue abandoning stretches while there is a strong demand for rail transport," Figueiredo said.
América Latina Logística (ALL) (Bovespa: ALLL11), which manages an unused railway stretch in São Paulo state, said in a previous report that there are not enough clients to justify rehabilitation investments on its 200km stretch right now.
Railway concessions have been operating in Brazil for 12 years.
By Business News Americas staff reporters
* Work to begin on Pisco airport expansion this year, says MTC - Peru
Expansion work on Pisco airport in Peru's Ica region is set to begin in 2010, according to the country's transport and communications ministry (MTC).
The expansion will cost some US$40mn, and includes the construction of a new terminal and complementary installations.
The airport, which is located 290km south of Lima, will provide an alternative to the capital's Jorge Chávez terminal in case of congestion or bad weather.
Following the expansion, the airport will also become the first in Peru to specialize in low-cost airlines, transport minister Enrique Cornejo was quoted as saying by state news agency Andina.
Pisco airport is operated by concessionaire Aeropuertos del Perú (ADP), which was awarded the country's first package of regional airports in December 2006.
The package also included airports in cities Tumbes (in the region of the same name), Talara (Piura), Trujillo (La Libertad), Chiclayo (Lambayeque), Anta-Huaraz (Ancash), Chachapoyas (Amazonas), Cajamarca, Tarapoto (San Martín), Iquitos (Loreto), Pucallpa (Ucayali) and Piura.
By Business News Americas staff reporters
* Calderón opens Anzaldúas international bridge - Mexico
Mexican President Felipe Calderón has officially opened the 5km Anzaldúas international bridge, which links the city of Reynosa in Tamaulipas state to Mission county in Texas, the presidential website reported.
The bridge's Mexican side was built by local firm Marhnos, which was awarded a 30-year concession to build and operate the structure by Mexico's transport and communications ministry (SCT) in 2007.
Construction cost 846mn pesos (US$66.3mn), of which 388mn pesos was provided by the company.
The Mexican side of the bridge is 2.5km long, with four lanes, and is expected to handle 7,000 light vehicles every day in its first phase, which was opened to traffic on December 15.
A second phase, to begin in 2012, will include special cargo lanes.
The bridge represents a symbol of cooperation between Mexico and the US, and is a sign that Mexico is on the road to economic recovery, Calderón said at the inauguration ceremony.
By Business News Americas staff reporters
* La Unión port to start operations in April - El Salvador
El Salvador's La Unión port will start operations in April under the administration of national ports authority Cepa, local paper Prensa Gráfica reported.
Cepa will invest some US$15mn to buy equipment for the port including two post-Panamax gantry cranes and four rubber tired gantry cranes (RTGs). The equipment will be bought second-hand from ports in the US, the report said.
All of the equipment is in good condition and if the port is concessioned it could be handed over to the operator, according to Cepa president Guillermo López Suárez.
At the same time, the Japanese overseas coastal area development institute (OCDI) has been carrying out financial and operative studies before the terminal starts operations.
According to these studies, the cargo to be handled at La Unión will be mainly transported to Nicaragua and Honduras, facilitating trade between these Central American countries.
La Unión port will have the capacity to transport 50,000 cargo containers in 2010, according to the results of the first phase of a technical study carried out by the Japan International Cooperation Agency (JICA).
The results correspond to the first phase of JICA's US$1.2mn market study, which is expected to be completed by mid-2010.
Construction of the La Unión port began in 2005 and ended in 2009, and cost over US$180mn. It has been inoperative since construction consortium Toa-Jan De Nul handed the completed facility over to Cepa on December 29 last year.
By Business News Americas staff reporters
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In-deph interview
* Mesoamerica: A permanent development initiative
María Teresa de Rendón
Executive director
Mesoamerica integration and development project
Regional
http://www.bnamericas.com/interviews/infrastructure/Maria_Teresa_de_Rendon_,Mesoamerica_integration_and_development_project,/169883903
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Main companies covered in today's news
* Secretaria de Comunicaciones y Transportes
http://www.bnamericas.com/company-profile/en/Secretaria_de_Comunicaciones_y_Transportes-SCT_Mexico/169883903
* Japan International Cooperation Agency
http://www.bnamericas.com/company-profile/en/Japan_International_Cooperation_Agency-JICA/169883903
* Ministerio de Transportes y Comunicaciones
http://www.bnamericas.com/company-profile/en/Ministerio_de_Transportes_y_Comunicaciones-MTC_Peru/169883903
* Ministerio de Transporte y Obras Públicas
http://www.bnamericas.com/company-profile/en/Ministerio_de_Transporte_y_Obras_Publicas-MTOP_,Uruguay,/169883903
* Empresas TECSA S.A.
http://www.bnamericas.com/company-profile/en/Empresas_TECSA_S,A,-TECSA/169883903
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