In Europe, fast and efficient train networks connect major cities and countries. For example, the journey from Paris to London takes only 2 hours and 16 minutes, crossing the English Channel through the Eurotunnel—one of the most impressive infrastructure projects in the world. The tunnel is 50 kilometers long and supports both passengers and freight moving at 160 km/h, with over $133 billion in commerce passing through annually. Other example debuted in 2024 was the new train that allows passengers to travel between Berlin and Paris in just eight hours.
In contrast, Latin America lacks a modern rail network. Despite being a popular topic for future development, progress has been slow. One of the few existing cross-border connections is the 8-kilometer train line between Posadas (Argentina) and Encarnación (Paraguay).
It wasn’t always like this. Rail networks once played a central role in regional development, but starting in the 1950s, investment sharply declined. The situation got worst in the 1980s and reached a critical point in the 1990s, when many rail services were dismantled or privatized without adequate support.
One major reason was the demand for financial self-sufficiency from public transport systems—despite the fact that most rail networks in the world require public subsidies to operate effectively. In Latin America, many systems were simply not profitable, leading to widespread abandonment. Moreover, rail is expensive to build and maintain. For context, the Eurotunnel cost $13 billion USD, equivalent to one-fifth of Colombia’s entire national budget in 2022.
There are also geographical challenges. Latin America is vast: the European Union and the UK together cover just over half the size of Brazil. Building rail infrastructure across such large areas is complex and costly.
On the other hand, corruption is another barrier. Experts point to fund mismanagement and lack of transparency as reasons why transportation infrastructure lags behind.
The reality shows that only few economies in the region can afford projects of this scale. Latin America’s transportation challenges reflect both historic neglect and a fast-moving crisis. Improving public transport is not only about mobility—it is a social and economic imperative. Better transport systems can create jobs, boost productivity, and enhance social inclusion.