Getting EFE Back on Track

After the Chilean government pulled out of a reinvestment plan designed to generate sufficient revenue for the nation's rail network operations in mid-2007, Chilean State Railways (EFE) was facing bankruptcy. In order to rectify its problems, a new EFE board of directors implemented actions, including activating some of EFE's latent subsidiaries. Changes in company structure to more closely resemble a holding company took place and included outsourcing some track upgrades and subsequent upkeep. Although EFE continues to run on a substantial loss despite these improvements, national freight traffic has hit an all-time high and passenger traffic is close to the same level by some definitions. Proposals have been made to build new links in the center and south to cater mainly to passenger traffic, new lines in the north to serve the mining sector, and a new Transandine railway through the Andes to Argentina. EFE is likely to prosper in the coming decade if the Chilean government can follow through with these plans.

Language

  • English

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Filing Info

  • Accession Number: 01150699
  • Record Type: Publication
  • Files: TRIS
  • Created Date: Jan 30 2010 8:27PM