Guatemala Sells Railway to Koreans

Representatives from the Korean companies Hyundai and Yoochang have announced an agreement with the current owner of the Railroad Development Corporation, and a total investment of $2,400 million.

Thursday, May 19, 2011

The Korean companies Hyundai and Yoochang Corporation plan to invest in restoring the functioning of the railway linking the Pacific and Atlantic coasts , to create a land alternative to the Panama Canal.

The Korean project will include an additional 600 km branch to connect with the port of Puerto Cutuco in El Salvador.

According to an article by Uriah Gamarro in Prensalibre.com, “Hyundai Corporation and Yoochang together form a conglomerate of public companies in Korea who operate services such as rail, shipping, port and airports operations, and automobiles and boat manufacturing."



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Tender for Railway Transportation in El Salvador

March 2021

A tender was announced to execute the studies that will be used to determine the feasibility of the development of the railroad network for cargo and passengers, included in the Pacific Train Project.

In a press conference, the Autonomous Executive Port Commission (Cepa) informed that through the technical cooperation in the bidding process, an analysis of the demand for rail service for cargo and passengers within the country will be carried out, and recommendations will be provided regarding the use of technologies and optimal alternatives for an efficient rail network and the appropriate systems to connect identified segments within the country.

Proposals for Freight Train in Guatemala

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The government is considering various options for the revival of rail freight in the country.

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Korean Companies Interested in Guatemala Rail

May 2011

The firms Hyundai Corporation and Sha Yu have shown interest in acquiring a stake in the railroad business.

Guillermo Porras of The Attorney General's Office, said that in the course of this month a delegation from the Hyundai company will arrive for a fact finding mission and to learn about the state of the petition for arbitration that the Railroad Development Corporation (RDC), railways beneficiary, has brought against the Government of Guatemala.

State of Guatemala unsuccessful in stopping Ferrovias lawsuit

November 2008

Ciadi, based in Washington, rejected the request by the State of Guatemala to suspend the suit for $65 million that was presented by Ferrovias in 2007.

By rejecting the objection, the International Center for the Resolution of Investment Disputes (Ciadi) asserts that it has the jurisdiction to handle the case in which the RailRoad Development Corporation (RDC), the majority shareholder in Ferrovias, is suing the Government of Guatemala.

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