TDU has also started negotiations with the National Railway Authority (DNTF) to gain to access to the line, which it says is in reasonable condition. TDU has been offered a US Budd diesel railcar and is trying to raise funding to acquire it.
The feasibility study conducted by the Grupo del Sur consultancy estimates that with four round trips a day, the service could attract 280,000 passengers a year. An internal rate of return of 26% and a net present value of $US 1.38m are forecast.
The line last carried passenger trains in 1988, but the population has grown considerably since then leading to severe road congestion. The line would serve several towns and has a potential catchment of around 85,000 people.
TDU was set up in 2010 as a cooperative to operate passenger and freight trains using its own or leased rolling stock. It is being supported by the Swiss based International Cooperative for Developing Latin-American Railways (Aiffla).
