transportation

Freight, passenger rail service runs at full steam

Poor road conditions and the high cost of fuel has renewed interest in rail services for freight and commuters alike.

LA PRENSA

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The Panama Canal Railway Company (PCRC) hit a new record in transporting cargo last week, reaching 8,200 containers in a single week, an increase of 15.4 percent over the previous record of 7,100 containers.

Higher demand in freight shipping by train can be traced to several factors: the increased cost of operating the boats, the hike in oil prices and rising tolls for passage through the Panama Canal.

Some shipping companies, therefore, have decided to bypass the Canal in favor of what they see as a more economical transportation service.

And the railroad company hasn’t missed a beat. The renewed interest in the route across the isthmus has spurred the PCRC to invest nearly $20 million over the past six months to keep up with the rising demand, which has also impacted the railway’s passenger service.

“We’ve added seven locomotives, two cranes for loading containers and 25 additional cargo cars,” said PCRC director and president, Thomas Kenna.

The railway, which runs next to the Panama Canal, was built under the aegis of the United States in 1855. It moves containers loaded with a cornucopia of goods, including fruits, vegetables, meats, salmon and other products arriving daily from South America to Europe and beyond.

Daily shipments vary between 400 and 1,000 containers, with each train pulling up to 35 cars.

Passenger service on the train has also gotten a boost in recent months, related PCRC’s Kenna, who explained that the poor conditions of Vía Transísmica in the direction of Colón has made passenger rail more appealing to commuters. Aside from commuter traffic between the capital and the Colón Free Zone, the railroad transports some 100,000 tourists who arrive each year on cruise ships between October and April.

The passenger rail service now counts on average 300 customers a day, up from just 44 when the service began in 2001. As the average number of passengers reaches capacity, about 350, PCRC is discussing the possibility of purchasing another wagon with 65 more seats, at a cost of $500,000.

“This equates to an investment of $15,000 per seat, which would be recouped in about three to five years,” said Kenna, who is convinced that the demand for passenger rail services will continue to increase, even when repairs are completed on Vía Transísmica.