Colombia Rail Reactivation: CAF Loan Fuels Sustainable Transport

CAF invests USD 300 million in Colombia’s **railway** reactivation. The program modernizes the **railway** sector, improving transport and logistics efficiency.

Colombia Rail Reactivation: CAF Loan Fuels Sustainable Transport
October 22, 2025 9:54 am
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Introduction

The Development Bank of Latin America and the Caribbean (CAF) has approved a USD 300 million loan to the Government of Colombia to support a railway reactivation programme.

Institutional and Regulatory Framework Modernization

The programme’s central focus is the modernisation of Colombia’s railway sector’s institutional and regulatory frameworks. This includes the establishment of a National Railway Agency and a review of existing legislation. Furthermore, key infrastructure projects may be designated as being of strategic national importance.

Strengthening Transport Networks

The initiatives also encompass efforts to bolster both urban and regional public transport networks. This will be achieved through the adoption of cleaner technologies and measures designed to ensure long-term financial sustainability.

Addressing Structural Challenges

The core of the programme addresses the structural challenges within Colombia’s transport sector. The national rail network is currently underutilised, with most freight transport relying on road haulage. This reliance increases logistical costs, impacting the competitiveness of Colombian businesses and contributing to road accidents.

Urban Transport and Decarbonisation

In urban areas, progress towards low-emission public transport technologies has been uneven. While Bogotá has made advancements, smaller and mid-sized cities face challenges in modernising their fleets and improving service quality. The programme, titled “Programme to Support Railway Reactivation, Sustainable Mobility and Logistics Efficiency,” aims to revitalise the railway sector. Its objectives include reducing reliance on road freight, promoting cleaner alternatives, and enhancing the efficiency of national logistics, supporting Colombia’s climate commitments by promoting a shift towards low-emission transport solutions.

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Conclusion

The Development Bank of Latin America and the Caribbean (CAF) is providing a USD 300 million loan to the Government of Colombia to support the railway reactivation programme, focusing on modernising the railway sector and improving transport efficiency.

Company Summary

Development Bank of Latin America and the Caribbean (CAF): Provided a USD 300 million loan to the Government of Colombia to support a railway reactivation programme.

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