Newsletter May 2008

For almost a decade, Peru’s national railway system has been privatized wherein Peru Rail has been the sole operator of service to and from Machu Picchu. However, a recent antitrust verdict by Indecopi, the national copyright and fair competition institute, has paved the way for new competitors to enter into the currently monopolized market. Later this year, one new company, and perhaps two, will break that barrier with first-class and economy class railcars on the track to Peru’s renowned tourist attraction.

Operated by Peruvian Grupo Crosland and Turistren of Colombia, Inca Rail is the first company to be licensed. The company anticipates three daily schedules with service beginning in October including one triple-car train that will accommodate 150 passengers and two more by the end of the year. Andean Railways Corp, operated by Iowa Pacific Holdings, is the second company that is expected to enter the competition as soon as it meets the approval of Ferrocarril Transandino, which controls and maintains the railway line. Its goal is to have four daily departures as well as to capture 20% of the 500,000 annual Machu Picchu tourists. Another potential operator, Wyoming Railway, is in the works with a preliminary license and will soon introduce its plans to the Transportation Ministry.

While representatives at Peru Rail, the current sole operators of the train line, have expressed their discordance with the government’s decision to allow competition, the new competitors only mean good news for the half a million tourist that flock each year to one of the recently elected New Seven Wonders of the World.

Source: Peruvian Times

PAST NEWSLETTERS:

• Newsletter April 2008
• Newsletter February 2008
• Newsletter January 2008