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Fenoco vows compliance with nighttime train ban

COLOMBIA'S main coal railroad, Fenoco, says it will comply with a ban by environmental regulators...

Donna Schmidt

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The company said it was notified of the measure, restricting travel at 10.30pm-4.30am daily, on February 7.

“The company accepts and respects the measure and proceeds from today, February 8, to stop the passage of trains at night time in the department of Cesar, as ordered by this administrative decision,” it said.

“Fenoco always has been willing to describe the measures of social and environmental management being implemented towards improving the conditions of the railway operation, in order to reach an agreement that would facilitate the healthy coexistence between the railway with its area of influence and not harm the country's economic development.”

The Regional Autonomous Corporation of Cesar, which oversees environmental issues in the Andean nation’s top coal producing region, initially ordered Fenoco on December 10 to halt train transport near populated areas.

A government source reportedly told Reuters in late 2012 that, if an order were put into place, the country’s exports of coal would drop by an estimated 23Mt annually and cost Colombia about $US470 million each year in royalties.

According to company data, Fenoco transports about 160,000t of coal daily.

Fenoco's shareholders include Glencore's Prodeco unit, Drummond and Goldman Sachs Group.

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