British Company to Conduct Demand Study for Panama-David-Frontera Railway

The company Steer Davies & Gleave Limited Sucursal Panama was hired through an exceptional procedure to evaluate all aspects affecting demand estimation, to determine the tariffs for services to be offered by the railway, such as cargo, passengers, and related services. The technical report clarifies that the master plan for the project initially included a demand study; however, it did not consider alternative development scenarios and fails to sufficiently reflect the impact the railway could have on socioeconomic and national development. This is one of several studies conducted by the Railway Secretariat to lay the groundwork for the bidding process for the first phase of the project, which covers the route from Panama Pacific to Divisa and must be launched next year. The company will also have to review the non-monetary benefits of the project that need to be valued, such as travel time savings, reductions in operational and vehicle maintenance costs, fewer accidents on routes, and lower environmental and noise pollution. "These analyses are essential for developing the project's financial structure and accessing international financing mechanisms," details the Railway Secretariat in the hiring report. The specialist must identify the main drivers of change linked to the country's growth and the railway project. Steer was chosen for having over 45 years of experience and 25 years in Latin America advising public and private companies. The company has been given a six-month deadline to deliver the study. The selected contractor must develop high-level demand projections to estimate trends over a 50-year period. The company was an essential part of the passenger and cargo flow estimates for the master plan of the Panama-Frontera railway. It was learned this Tuesday that the British-based company will be in charge of conducting this study at a cost of $834,600.