URUGUAY State Railways (AFE) has agreed a deal with the National Administration of Fuels, Alcohols and Portlans (Ancap) to move 800,000 tonnes of freight per year, a deal  it considers one of the most important of the last few decades.

AFE, through its Railway Logistics Services subsidiary (SeLF), will transport 380,000 tonnes of fuel, 390,000 tonnes of cement and limestone, as well as sugar by rail annually.

The contract also includes the reinstatement and maintenance of the railway at Queguay quarry and the Paysandú plant. Ancap will supply ballast from the quarry to maintain AFE’s infrastructure.

 “Tt is a very important agreement,” says AFE president Mr Miguel Vaczy. “I would say that it is the most important in recent decades because it empowers the entity from various points of view. Logistics and the cost of freight have a decisive influence on the competitiveness of products and merchandise. Beyond the maintenance of the railway lines, AFE and SeLF are focused on strengthening the Port of Montevideo as a regional distribution centre.”