A delegation from Etihad Rail visits Asuncion to discuss the 44 km line to Ypacaray.
The Etihad Rail delegation met with the President of Paraguay on November 4.
Paraguay is seeking potential cooperation with the United Arab Emirates to revive its long-awaited suburban train project, following the visit of a technical delegation from Etihad Rail to the capital Asuncion on November 4.
The delegation met with the President of Paraguay, Santiago Peña, to discuss cooperation in developing urban railways as well as freight, with a proposed 44-kilometre passenger and tourist line between Asunción and Ypacaray among the main topics on the agenda.
The meeting marks renewed momentum for the project after the Paraguayan government canceled a US$500 million concession agreement with Korea in September 2024 to finance, build and operate a light rail line with a fleet of trams. The government subsequently announced that it would move forward with the project under a new framework, and opened discussions with several foreign partners, including the United Arab Emirates.
According to a report he published La Politica OnlineCiting officials from the Ministry of Public Works and Communications (MOPC), the government could contribute about US$150 million, with private investors providing up to US$450 million under a 30-year concession model.
The passenger line is expected to carry up to 60,000 passengers per day. While initial plans envisioned the Asunción-Ypacaray section as the first phase, the government now intends to start with the Asuncion-Luque section before expanding to Ypacaray in the second phase.
If completed, the project will provide Paraguay’s first passenger service in decades. There have been no passenger services since regular operations between Asuncion and Luque ceased in the early 2000s, with only occasional tourist trains continuing.
Reopening the line would reduce road congestion in Asuncion, promoting sustainable urban mobility along with new tourism and regional development initiatives.
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