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Old December 19th, 2008, 07:34 AM   #1
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PERU | Railways

EXCLUSIVE-Peru rejects Orient Express contract extension

LIMA (Reuters) - Peru's transportation ministry has rejected the Orient-Express Hotels Ltd's request for an extension on its lucrative contract to run passenger trains to tourist attraction Machu Picchu.

In letters obtained by Reuters, Miguel Sanchez Del Solar, the ministry's director of concessions, denied a petition that would have given the luxury tourism company the right to operate trains for an additional five years.

The company has high-end hotels all over the world, including the Cipriani in Venice and the Copacabana Palace in Rio de Janeiro, and it operates the legendary Orient-Express rail line in Europe.

"The request to extend service has not been accepted," Del Solar said in one of the letters.

Orient-Express officials did not provide comment. More than 1 million people visit Machu Picchu each year. Most visitors buy train tickets that cost around $100 round trip from the city of Cuzco, but a luxury seat can cost more than $500.

Peru's government privatized rail lines in 1999, when units of Orient-Express won a 30-year concession, which can be extended by five extra years every five years.

Orient-Express won its first extension request several years ago, but the most recent one was denied as would be competitors complained that the company was operating as a monopoly with control of the rail line and passenger trains.

Two aspiring newcomers, Inka Rail and Andean Railways, have plans to start running trains to Machu Picchu, but said that Orient-Express has blocked their efforts in a long-running legal feud.

The transportation ministry declined comment when asked if its decision was part of an effort to encourage more competition along the rail route.

Apart from train, the only other way to reach the ancient Incan ruins is walking for four days through the Andes mountains.

Orient-Express shares closed down 5 percent at $6.96 on Thursday.
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Old December 19th, 2008, 11:31 AM   #2
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Since we're on this topic, here are a few pics of the very awesome Hiram Bingham train run by the above mentioned company:

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Old September 7th, 2011, 03:55 PM   #3
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But what with public rail service in Peru.

I know that Peru have only few rail lines.
Are there plans for suburban trains in Lima?
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Old September 7th, 2011, 04:45 PM   #4
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They're building an elevated metro in lima.

Peru goverment should take the Perurail service, the trains and the coaches are good, but the tracks are in a very bad shape, and the trip isn't comfortable, at least for the elevated prices for tourist.
With leveled and ballasted tracks, and welded joints, they can give a better service and more speed!

But of course the journey worth it! The surronding are amazing, and doing the inca trail was one of the most excellent trails I'll ever done! (also very very tireing)
Some pics from March!

From the inca trail

From Machu Picchu

Aguas calientes

On board service (economic class)

Final destination, from here a bus to cusco

...Divididos desde siempre, desde el aula hasta el bar...

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Old January 7th, 2013, 10:17 AM   #5
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News for Guinness Book of World Records fans: The town of Morococha, Peru, destination of the world's highest railway prior to the opening of the trans-Tibet railway in 2005, is moving.

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Old July 19th, 2013, 04:38 AM   #6
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old railway in Arequipa



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Old May 11th, 2014, 08:02 AM   #7
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Some shots of the train trip from Cuzco to Machu Picchu:

Argentina - Brazil - Chile - Colombia - Italy - Panama - Perú - Uruguay
Boston - New York City - California
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Old June 20th, 2014, 05:39 PM   #8
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From Railway Gazette:


Tacna – Arica reopening studies
20 Jun 2014

PERU: Government investment agency ProInversión has invited bids for a contract to undertake studies for reopening the 60 km railway that connects the city of Tacna with the port of Arica in Chile.

Out of service since May 2012 due to poor track condition, the 1 435 mm gauge Tacna – Arica route was latterly operated with two 60-seat diesel railcars and a 900 hp Alco DL531 locomotive dating from 1957.

According to the tender documentation, studies to be undertaken by the winning bidder will include an assessment of the demand for restoring passenger services between Tacna and Arica, as well as the potential for urban services within Tacna itself. Freight studies will include work to determine the potential for modal shift from road as well as identifying potential traffic for export via the port of Arica.

Under a revised timetable, bids are due to be submitted by 16.00 on June 27. Following the assessment of technical proposals, ProInversión expects to announce the preferred bidder on June 30
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Old June 23rd, 2014, 11:44 AM   #9
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Peru back in 2005: https://www.flickr.com/photos/youthw...7636593251895/

Does anyone know if the FCHH "tren macho" is still operational? This video suggests it is but other sources online say its suspended....


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Old June 26th, 2014, 01:18 PM   #10
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From Railway Gazette:


PeruRail orders Sygnet locomotives
26 Jun 2014

PERU: PeruRail has ordered four M629 diesel locomotives from Sygnet Rail Technologies to haul passenger services on the 914 mm gauge line from Cusco to Machu Picchu.

The 1 800 hp locomotives will incorporate the Sygnet Power Module, a self-contained unit developed by the US company. This contains a Cummins QSK diesel engine along with the alternator, rheostatic braking, cooling and control systems.

‘These locomotives will provide PeruRail with excellent performance and an unparalleled level of reliability’, said Sygnet President & CEO David Swanson on June 22. ‘In addition, they comply with the Kyoto Protocol, making them some of the cleanest-emissions locomotives ever delivered to Latin America.’
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Old March 20th, 2015, 06:16 PM   #11
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From Rail Journal:


Peru develops plans for Trans-Andean rail tunnel
Friday, March 20, 2015

AFTER several years with very little activity, plans for a rail tunnel beneath the Peruvian Andes look set to move forward after Peru's minister of transport and communications José Gallardo announced studies will be launched for the $US 2bn project later this year

Gallardo told Peruvian newspaper Diario Correo on March 19 that a tender for feasibility and design studies will be launched by the middle of the year for the 23.2km tunnel from Rio Blanco to Yauli.

The tunnel would reduce the journey time between Lima and Huancayo, the capital of Junín region from around 12 hours to less than five hours

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Old July 28th, 2015, 04:06 PM   #12
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From Rail Journal:


Peru launches tender for Tren Macho revival
Tuesday, July 28, 2015

PERU's Agency for the Promotion of Private Investment (Proinversión) issued an invitation to prequalify on July 24 for a concession to "comprehensively rehabilitate" the 128.7km Huancayo - Huancavelica line in the Andes, which is popularly known as Tren Macho

The line is one of the highest railways in the world, reaching a summit of 4700m above sea level


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