To enhance regional connectivity and logistics, the Government of El Salvador has committed to investing more than $1.8 billion in railway infrastructure over the next decade. This ambitious initiative is part of the broader Regional Mobility and Logistics Master Plan 2035, unveiled by the Ministry of Public Works (MOP) and the Secretariat for Central American Economic Integration (Sieca) yesterday.
The Regional Master Plan outlines a staggering total investment of $52 billion across six countries in the region, with El Salvador accounting for $10.7 billion. Of this amount, $1.827 billion is earmarked specifically for reviving the dormant railway service, which has been inactive since the armed conflict.
Minister of Public Works, Romeo Rodríguez, highlighted that a substantial portion of this investment aims to establish a railway network connecting Central America with Mexico. This includes the implementation of the Pacific Train and a monorail in the Metropolitan Area of San Salvador (AMSS). In July of the previous year, the Ministry of Economy submitted a request to the European Bank for $450 million to kickstart these projects.
El Salvador’s project portfolio also allocates funds for various sectors, including $5.8 billion for road infrastructure, $632 million for port transportation, and $2.113 billion for airport services. Additionally, $35 million is set aside for border improvements and $88 million for urban logistics.
Minister Rodríguez emphasized that interventions in road infrastructure will significantly reduce the cost of transporting goods, bringing down the average cost from $0.17 per kilometer to $0.05. Furthermore, there is an expected increase in travel speed from 16 km/h to 60 km/h.
The development of the master plan involved the collaboration of five Japanese companies and received approval from 18 government ministries. The Japan International Cooperation Agency (JICA) provided the financing and will send a regional advisor to oversee the plan’s implementation.
JICA’s representative in El Salvador, Masaru Kozono, revealed that the agency will cover the Sieca’s strategy costs to ensure coordination and dissemination of the master plan through social media, workshops, and seminars. Moreover, JICA will train 42 technicians from the region in Japan between 2023 and 2025, providing financial support alongside other entities.
Minister Rodríguez also announced that the World Bank (WB), Inter-American Development Bank (IDB), and Central American Economic Integration Bank (BCIE) have joined forces to support the strategy. The WB has already approved $150 million for one of the projects: the Apopa Bypass.
El Salvador’s ambitious Master Plan for Mobility and Logistics 2035 encompasses 11 corridors and 398 projects from Guatemala to Panama. Within this framework, El Salvador will focus on five key corridors:
- Road Infrastructure: Allocation of $5.8 billion for road and land transportation, constituting 58% of the plan’s funds.
- Aeronautical Infrastructure: A portfolio of $2.113 billion for airport-related projects, including the Pacific Airport.
- Maritime Port Infrastructure: An allocation of $632 million for this sector, with the Acajutla Port being the primary platform.
- Urban Logistics: Services and products dedicated to improving urban logistics represent an investment of $88 million in the Master Plan.
- Customs: Border management, including specific actions to enhance mobility, has the lowest investment at $35 million.
El Salvador’s commitment to this comprehensive plan is poised to transform the nation’s transportation landscape and contribute to the broader regional goal of fostering efficient mobility and logistics by 2035.