An ill wind blows for EFE: just 18 months ago the future for Chilean State Railways (EFE) looked rosy as it invested heavily in passenger services. But now passenger numbers are in freefall and after reporting its biggest ever loss, EFE is on the brink of collapse. Regional editor Ian Thomson examines EFE's fall from grace, and the prospects of a revival.(News analysis)

International Railway Journal | June 1, 2007| | Copyright

BY 2000, long-distance passenger trains had all but disappeared from South America. All that remained were some services supported by provincial governments in Argentina, a handful of operations in areas of Bolivia and Ecuador with poor road access, those run by iron-ore miner Companhia Vale de Rio Doce in Brazil certain tourist trains, but very little else.

The exception to the rule was Chile. EFE continued to run Intercity trains from Santiago to Concepcion and Temuco, as well as heavily-used suburban services in the Santiago and Valparaiso areas, and rural lines ...

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