RT Journal Article
SR Electronic
T1 Rail Freight Project Finance
JF The Journal of Structured Finance
FD Institutional Investor Journals
SP 15
OP 22
DO 10.3905/jsf.1999.320208
VO 5
IS 2
A1 Henry Posner III
YR 1999
UL https://pm-research.com/content/5/2/15.abstract
AB Since the early 1990s, privatization has swept the global railway market. The experience of Railroad Development Corporation, a U.S.-based railway investment and management company focused on developing countries, suggests that marketing has a greater impact than cost control on the success of a railway project. A case study on the restoration of an abandoned railroad in Guatemala illustrates how Railroad Development Corporation found local partners, identified freight customers, leased the right of way for non-railroad businesses, arranged financing, and reconstructed the railroad. Lessons learned on assessing the transportation market and valuing the business would be helpful for other emerging-market railroad projects.