APURÍMAC, JUNE 30 2021 IFC presents case of Shared Railway in Guinea

The International Finance Corporation (IFC) unveiled the shared railway infrastructure related to mining during its participation in Heading to PERUMIN Apurímac.

Alex le Grange,  mining industry specialist in IFC’s infrastructure team, recalled that IFC has a 30-year track record of investments in Peru, such as Yanacocha and Quellaveco.

He also commented that shared railway infrastructure has benefits such as increasing competitiveness by reducing transportation costs, thus maximizing the economic benefit (rail transport is often 3-5 times cheaper than trucking for bulk materials)

"Also enabling the development of marginal and other new smaller deposits by removing the investment barriers to infrastructure; unlocking the potential of other sectors of the economy (agriculture, passengers, etc.); as well as contributing tangible benefits to the surrounding communities if the railway infrastructure involves passenger transport ", he said.

Regarding the case of the Shared Railway, the specialist explained that this project has taken place in Guinea, a country that has one of the world's most important sources of bauxite, a key mineral for producing aluminum.

"The production and export capacity of bauxite in Guinea has increased from 6 to 11 million tons per year in the last three years. So the multi-user railway along the Sangarédi-Kamsar transport corridor has been key to unlocking this growth potential. In addition, the multi-user railway links the interior of the country where the bauxite deposits are located, around Sangarédi, with the export port of Kamsar", he said.

He also stressed that to achieve success in this type of project, strong support from the government is required; as well as the alignment of all stakeholders, which is vital to ensure compliance and commitment

"There is no one-size-fits-all model: ownership, financing and the chosen operating model will depend on the influence and interests of the different actors; and an effort must be made to create a governance structure that is adaptable and works efficiently," said Alex le Grange.

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