PERU-RAILROADS

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP67-00059A000500050011-9
• Release Decision: RIFPUB
• Original Classification: R
• Document Page Count: 4
• Document Creation Date: December 12, 2016
• Document Release Date: September 25, 2001
• Sequence Number: 11
• Content Type: REPORT

Approved For Release 2001/11/01 : CIA-RDP67-00059AO00500050011-9
Approved For Release 2001/11/01 : CIA-RDP67-00059AO00500050011-9
 Approved For Release 24 ES1T (Cis@P67-00059A000500050011-9
"ERU riAILROA W.,
A, P?LICIES
1., Basic rail policy is determined b;.- the govern--gent. It involves
promotion and construction of new railroads to unite the widely
separated reglans of the country. Peru is a country of great
geographical contrasts. There are three Perus-the dr;, narrow
coastal plain with modern cities and ports; the Andean Sierras
with mineral resources; and the immense montana sloping eastward
to the Amazon plain, It is fundamental to the national economy
that these regions be connected by efficient transportation,,
The populous and politically influential Southern Peru area is
isolated from the capital. It is politicafl expedient for the
party in power to provide this reg.on with efficient cross country
railroads connecting the Pacific coast port of tollendo (ratarani)
with Bolivia via Lake Titicaca shipping, It is advantageous,
furthermore, for Peru to maintain Bolivian good-will try protecting
this valuable outlet for La Paz. Actually, the new harbor facilities
at the protected port of katarani are not subject to the Pacific
swells which endanger loading and unloading at ;;ollendo, and taus
have improved the safety of the operations.
20 There is little integration between railroad policy and that of
other forms of transportation.
For strategic and military reasons the Peruvian goverrrient is
interested in maintaining the railroad route into Bolivia, Peruvian
flag steamers operate to Bolivian ports on international Lake
Titicaca.
4. There are no subsidies to privately owned railroads.. The true
financial circumstances to State owned railroads cannot be deter-
mined because some maintenance expenses are not accounted for,
The extent of subsidization of state-owned lines is thus difficult
to ascertain. The government promoted the construction of a rail
extension to the protected harbor of ratarani, however, which imp
proved the service between Bolivia (La ?az) and the Pacific,
5, The government's rail transportation policy is unaffected by vested
interests. The railroads are indispensable for moving bulk pro-
ducts. Terrain difficulties, however, have forced Peru to subordinate
rail policy to the requirement of highway expansion.
B. Oi GAl:IZt.TION
1. The railroads of ?cru are controlled by the following agencies:
Ministry of Development And 'Public .orks
Buroau of Highways and Railroads
Jtailroad Section
Department of Administration
Department of Operations
Department of Engineering
RESTRICTED
Approved For Release 2001/11/01 : CIA-RDP67-00059AO00500050011-9
 Approved For Release 2q 1 t.b1-RDP67-00059AO00500050011-9
PEkW a RAILROA (I3 CONT a u)
2, The Bureau of Highways and iailroads is headed by a Director
General who is directly responsible to the 1.?inistryy of Develop-
ment and ?ublic r,orks., A sub-director is in charge of the
Railroad Section which in turn has departments for Administration,,
Operations and Engineering,
Highways and Failroads are coordinated within the Ministry of
Development and !=ublic Yorks, There is, no direct, coordination
between the L:inistries responsible for the various media of trans-
portation. There is no appreciable overlapping or conflict be-
tween them or between the national agencies and the political
subdivisions,
L. Formerly govern lent supervision of highways, railroads and all
other public works was the responsibility of a Bureau of Public
'VJ'orks and Transportation. This proved unoatisfactor;; and resulted
in a reorganization into separate specialized bureaus under
trained personnel,
5, There are no known plans for reorganization or the establistunent
of new agencies. The present governmental agencies are considered
to be fulfilling their functions adequately, The railroad
agencies are operated for the public good. They are relatively
free from Political interference. Engineering is good, but there
is a need for more mechanized construction.'
C. AUJINISTRATION
1, New railroad construction is decided by the Construction and
Studies Department of the Bureau of Highways and Railroads
after recorm;endations from appropriate commissions following;
approval of the current budget. However there has been no new
railway construction of importance during the last thirty years.
This emphasizes the priority given the highway construction in
national transportation policy,
2. The tariffs of privately owned public carrier railroads are
stipulated in contracts approved by law and renegotiated every
five years. Higher rates can be authorized only by new contracts
or by decree approved by the Ministry of Public corks, -the rate
schedules must be within the maxima established by the Bureau of
Highways and railroads, hates on state-owned lines connecting
both private and common carriers are patterned after the latter,
3, Basic g ovemnnent policy has, for the last fifteen years, favored
higluray transportation against railway transport, by approving
the construction of roads which in some cases parallel the rail
routes. Motor transport units follow no fixed schedules, charge
what the traffic will bear, furnish inferior service, compete for
the best paying traffic, provide door to door. service and are
primarily in the hands of non-liable individual driver-owners.,
Consequently the railroads have not been able to increase rates
despite higher operating costs,
Approved For Release 2M$ffl1*CT(Eck-RDP67-00059AO00500050011-9
 Approved For Release 20RO~L'L1,(qtT?bA-RDP67-00059A000500050011-9
PERU RA ILI OA 22 (C CONT' II
1, Railway safety measures established by the Bureau of Highways
and Railways are infor.ced by the Bureau's inspectors, Railroad
personnel is not subject to government regulations. Railway
accidents are investigated by both police and the inspectors of
the Bureau of Highways and Railways,
5, There are no government-fostered courses for training railroad
technicians other than the courses offered by the National' School
of Engineering. Training procedures at this school are determined
by the Ministry of Education,
6, The Peru-Bolivia trade treaty of 1935 makes no mention of opera-
tional agreements, merely stating that Peru will furnish safe
conduct for tax-free Bolivian cargo, The Southern Railway is
owned and operated by the Peruvian Corporation, Moreover this
corporation owns the Lake Titicaca steamship line and the rail
line from the Bolivian shore to La Paz, Through handling of
passengers and freight is an integrated operation by the Peruvian
Corporation, The Tacna-Arica railway, extending a few miles into
Chile, is not subject to any operating agreements, Operations are
entirely under Peruvian government control. Free transit over
Chilean territory is,provided in Article VII of the 1929 peace
treaty.
7.. Railways must submit reports to the Bureau of Highways and Rail-
ways covering traffic, rates,, and accidents, Traffic figures are
reported annually for analysis and compilation by the Statistical
Section of the Bureau of Highways and Railways. Routine inspection
reports are submitted to the same Bureau by government inspectors,,
while accident reports are forwarded to both the Bureau and the
police,
-3-
Approved For Release 20R gJfflOr
,IT6-RDP67-00059A000500050011-9