The Uruguayan railway grid was built by the British during the 1860s and nationalized by the Uruguayan government following WWII. Only basic maintenance has taken place since: the entire grid is approximately 1,800 miles-long, but only 750 miles are fully operational. It is almost exclusively dedicated to the transportation of cargo, principally forestry goods. The national passenger system was suspended in 1989 and, except for short metropolitan stretches, does not transport passengers. AFR, the public railway company created in 1952, recently announced plans to invest US$100 million to revamp and expand the country’s railway cargo system. Uruguayan authorities expect the forestry sector to expand substantially in the next few years and efficient railway services are crucial for getting the goods to port. Recent legislation approved the rental of AFE-owned railways for the transportation of private sector goods and partnerships with private-sector companies for the transportation of cargo.

For the full report, please contact Robert Gorter, Sector Specialist in Uruguay.