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Colombia Energy Resources Inc a metallurgical coal exploration andproduction company operating in the Republic of Colombia,anticipates transportation cost savings from the plannedmulti-billion dollar infrastructure renovation by the Colombiangovernment and private industry. As a direct benefit of theinfrastructure investments being made, CERX expects to use both therailroad and river barge system to bring its metallurgical hardcoking coals to international markets. Recently, the Colombian government released details of its plan toinvest more than USD 7.5 billion to restore and expand the countryrail system and improve the Magdalena River. Its objective is tostrengthen these two main transportation routes to reduce longdistances between the production and consumption centers and thesea ports, thereby increasing exports. According to the Colombian Chamber of Infrastructure, the currentlack of multimodal transportation adds an estimated 80% to the costof transporting coal. The project calls for the restoration of1,672 kilometers of existing rail lines of which only 55% iscurrently in use and for the construction of new systems andbranches. For the Magdalena River, Colombia and local municipalities plan toinvest more than US$135 million over four years in order to restorenavigability to 1,500 km of the river. This is expected to increasetransportation capacity from 35 million tons annually to 90 millionby 2018. The improvements to the rail system are expected to allow half ofthe total coal production in the country to be moved by train, withthe rest transported by the river. The Colombian Mines and EnergyMinister reportedly projects coal production to reach 124 milliontons in 2014, climbing to 152 million by 2020. The government program is supported by capital contributions fromseven private companies two Brazilian, one Swiss, one Israelian andthree Colombian. Mr Luis Fernando Andrade Moreno president of ColombiaInfrastructure National Agency said "We want to have as muchforeign participation as possible. This is the most ambitiousprogram that we've ever undertaken in Colombia for infrastructure.And I think it's a great opportunity for US companies." Colombia created ANI to oversee development and ensure maintenanceof this new infrastructure. ANI estimates that its overallinfrastructure investment more than doubled by the end of 2011 tonearly USD 4 billion and it could pass USD 7 billion by 2014. Mr Ronald G Stovash Colombian Energy Resources' CEO said "Therevitalized rail and river transportation system will be atremendous boost to our outlook for long term growth and increasingprofitability. Currently we can only make use of truck transport.While still economical for us, it is far less efficient and costeffective versus rail or water modes of transport. As CERX moves tomore cost effective transportation, the savings will drop right toour bottom line. Eventually, we see the potential for Colombianmetallurgical coal to be among the lowest cost productionglobally." Source - Colombian Energy Resources. I am an expert from laserlevel-tripod.com, while we provides the quality product, such as Aluminum Camera Tripod , China Rotating Laser Levels, Aluminum Camera Tripod,and more.
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