Representatives of the Venezuelan Economic and Social Development Bank (BANDES) and the Cuban Foreign Bank signed the agreement granting $100 million to upgrade rail tracks, signals and communications.

Jorge Luis Sierra, Cuban transport minister, stated that this action “will increase the speed of our trains from 40 to 100 kilometers per hour, have a direct impact on transportation capacity and multiply the country’s current rail fleet.”

He added: “With this credit, the lines can be completely restored to bring them up to their original design conditions for freight or passenger traffic.”

Sierra noted that the Cuban railroad system deteriorated badly during the Special Period and stated that now, as the economy is becoming consolidated, is the time for its reestablishment.

He also explained that Cuban specialists are working in Venezuela on a parallel project to upgrade and extend that country’s railroad system, abandoned for more than 30 years.

The Cuban minister and president of BANDES, Rafael Isea, agreed that efforts like this to confront shared problems fall within the framework of the Bolivarian Alternative for the Americas (ALBA) and are a material feature of Latin American integration.

See also:

Venezuela to lend Cuba 100 mln USD for rail upgrade

People's Daily: September 26, 2007

Venezuela will lend Cuba 100 million U.S. dollars to help modernize its rail system, Cuba's Transportation Minister Jose Luis Sierra told official newspaper Granma on Tuesday.

Improvements will be made in the signaling and switching systems and trains will be able to travel at 100 kph instead of the current 40 kph, he said, adding that the lines will also be restored to their original designed capacity.

The loan from Venezuela's Social and Economic Development Bank (Bandes) to the Cuban Exterior Bank will also allow an increase to the rolling stock fleet.

Since the collapse of the Soviet Union, Cuba has been suffering a crisis, known as the "special period," which has hurt many sectors, including railways.

Railways that enable the swift movement of passengers and cargo are essential for Cuba's economic recovery, Sierra said.

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Cuba to Develop Railroad System with Venezuelan Assistance

Mathaba: 2007/09/26

Cuba and Venezuela took another step in the area of bilateral cooperation with the approval of a Venezuelan credit to finance the recovery of the railroad infrastructure on the island.

Havana, Sept 25 -- According to Granma news daily, representatives from the Venezuelan Bank for Socio-Economic Development (BANDES) sealed the accord that will grant Cuba $100 million to improve railways, railroad signposting and communications.

The Cuban Transportation Minister, Jose Luis Sierra Blanco, noted that this agreement will allow Cuba to increase the speed of trains from 40 to 100 km/h. The capacity of transportation as well as the Cuban rail fleet will also increase as a result of this initiative, he added.

Sierra recalled that the Cuban railroad system suffered a significant deterioration during the harsh economic crisis of the 1990s and stressed that, with the recovery of the national economy, it is necessary to revert that status of deterioration.

He also explained that Cuban experts work in Venezuela to restore and to expand the railroad system in the South American nation.