The incredible £940m mega-project to transform trains in world's worst country

A "master plan" is being drawn up to transform a nation's rail infrastructure. The project, which is estimated to cost around $1.27 billion (£940 million), hopes to improve the efficiency of the country's passenger rail system and support local industries.

According to figures from The Global Economy, Uruguay has the worst quality of rail infrastructure in the world. Research carried out between 2009 and 2019 ranked the South American country lower than Benin, DR Congo and Madagascar. Meanwhile, Japan ranked at the top of the list with Hong Kong in second and Switzerland third.

Plans are now being drawn up to revolutionise the rail network in Uruguay. The project, which is expected to take 18 months to develop, will modernise the whole system, benefitting both passenger and freight traffic across the nation.

The plan has been signed by the Ministry of Transport and Public Works (MTOP), National development agency CND, and South American development bank CAF. It is being funded by a contribution from the Development Bank of Latin America and the Caribbean (CAF).

As reported by the Rail Journal, the new plan will improve rail connections with key ports such as Montevideo and Fray Bentos. There will also be moves to improve cross-border connections, using new technology and digitalisation strategies.

Lucía Etcheverry, minister of transport and public work, and Waverley Tejera, the MTOP's national rail director, said the plans represent a chance to reactivate the rail sector. They will also generate employment across Uruguay and enhance the capacity for logistics.

The main line between Montevideo and Paso de los Toros is still operating at under 50% of full capacity. This is despite a recent upgrade project financed by the Central Railway.

Train services in Uruguay are currently limited with most people opting for alternative modes of transport. The network is underdeveloped and primarily used for freight.

There are limited double-track train lines and a reliance on diesel traction. Most people instead use the bus in Uruguay.

As opposed to the train network, the bus system is reliable and comprehensive, serving most of the nation. Buses are also considered cleaner, safer and more affordable than trains.