Venezuelan president Hugo Chávez has announced the inauguration of a massive railway project about to get underway in Venezuela.
As the first step of the project, China's Railway Group Ltd will begin installing locomotive factories that will solely consume Venezuelan steel, as well as a new 290-mile long railway line, which Chávez expects to be operational by 2012. The new line is part of the country's National Railway Program, which involves the development of railways and public construction projects. Upon its slated completion in 2030, the National Railway Redevelopment Plan will consist of nearly 8,500 miles of railway, with the ability to transport 210 million passengers and 190 million metric tons of cargo per year.
This US$800 million project is possible due to Venezuela's strengthened ties with China through the Chinese-Venezuelan Fund.
China's ambassador to Venezuela, Zhang Tuo, said that Venezuela's new rail system will be among "the most modern in the world."