Ministry of  Transport and Public Works (MTOP) in Ecuador has launched a tender seeking private developers for the Daule -Posorja railway corridor phase 1 under Public-Private Partnership scheme.

The project includes design, finance, construction, operation and maintenance of 115 km long railway with a tunnel of length 4.475 km connecting city of Daule and Posorja.  The train locomotive will have an approximate length of 400 meters, it will be able to move 30 containers of 20 feet, with towing capacity is 600 tons. Average speed will be between 40 and 60 kilometers per hour.

The Secretary of State also stressed that project will save fuel by moving cargo by train, instead of by regular transport. There would be savings for the fuel subsidy of US$ 11.4 million per year. In addition, the use of the train reduces emissions of greenhouse gases, "he said.

Concession period will be 30 years including 3 years of construction and 27 years of operation and maintenance contract.

The total investment estimated for the project is US$ 526.90 Million. US$ 370.50 will be used into infrastructure investments and US$ 156.40 million for the operation and maintenance of the railway line.

The deadline to submit bids is August 16, 2019.

Award of the contract is expected on October 9 and signing of the concession contract on November 9, 2019. 

The government will soon open the contest for Phases 2 and 3 for the Posorja, Santa Elena and Manta sections.