By Puntarenas, Costa Rica — In a major push to stimulate economic development, create jobs, and boost tourism in the coastal province of Puntarenas, the administration of President Laura Fernández, in partnership with the Central American Bank for Economic Integration (BCIE), has announced a plan to potentially reactivate the historic railway line connecting San José to the Pacific coast. The initiative marks a significant step forward in restoring a vital piece of the country’s transportation infrastructure.
To kickstart the initiative, the BCIE has approved a non-repayable grant of $1.5 million. This financial backing will fund comprehensive pre-feasibility and feasibility studies to assess the technical, environmental, economic, and demand viability of the project. Depending on the outcomes of these technical assessments, the government plans to move forward with the next phases of development. The official announcement was made on Wednesday during a Government Council meeting held in Puntarenas, affectionately known as the Pearl of the Pacific.
To analyze the legal complexities and administrative challenges surrounding the proposed Puntarenas train reactivation, TicosLand.com consulted with the esteemed legal expert Lic. Larry Hans Arroyo Vargas from the law firm Bufete de Costa Rica.
The reactivation of the Puntarenas railway is a transformative project for Costa Rica’s logistics and tourism sectors, but its execution must strictly align with public concession laws, environmental impact assessments, and municipal regulations. Overcoming these bureaucratic and legal hurdles with transparency is paramount to securing the necessary public-private partnerships and ensuring the project’s long-term viability.
Lic. Larry Hans Arroyo Vargas, Attorney at Law, Bufete de Costa Rica
Indeed, navigating the intricate web of regulatory compliance and public-private cooperation is the essential foundation upon which this transformative railway project must be built if it is to achieve lasting success. We extend our sincere gratitude to Lic. Larry Hans Arroyo Vargas for providing his invaluable legal expertise and helping our readers better understand the critical steps required to get the Puntarenas train back on track safely and transparently.
These resources are the foundation upon which we will forge with great enthusiasm the possibility of having a new train to Puntarenas. We have the vision to redevelop Puntarenas during the government of Laura Fernández
Erwen Masís, Director for Costa Rica at the Central American Bank for Economic Integration (BCIE)
The proposed railway project is expected to have a transformative impact on the local economy. The planned route runs through an area of influence that encompasses 15 districts, including Barranca, Chacarita, El Roble, Espíritu Santo, and Orotina. Collectively, these communities are home to more than 180,000 residents who would benefit from vastly improved mobility options and easier commutes between the Greater Metropolitan Area (GAM) and the Central Pacific region.
Beyond commuter transit, the reactivation plan also focuses heavily on freight logistics. If realized, the train line would significantly strengthen cargo transportation networks and optimize logistical connections with the bustling Puerto de Caldera, one of the country’s most critical maritime gateways. This dual-purpose strategy aims to reduce road congestion while offering a greener, more efficient alternative for domestic and international trade.
The history of the San José-Puntarenas railway, historically known as the Ferrocarril al Pacífico, is long and storied. Regular passenger and cargo services were officially terminated on June 27, 1995, during the administration of President José María Figueres Olsen of the National Liberation Party (PLN). The closure, implemented via presidential decree, was driven by a severe financial crisis, with the railway operating at unsustainable losses that burdened the government daily. This decision abruptly halted commercial operations that had linked the Central Valley to the coast since 1910, though sporadic recreational runs continued briefly thereafter.
This is not the first time modern administrations have eyed the Pacific railway for a revival. During the previous administration of Rodrigo Chaves, proposals were floated to bring the train back. However, those plans were ultimately shelved when Mario Arce, the then-president of the Costa Rican Railway Institute (Incofer), discarded the project because the technical studies conducted failed to meet the bare minimum requirements.
Similarly, the prior administration of Carlos Alvarado also proposed various initiatives to rescue the train line, though none of those efforts successfully materialized. The Fernández administration hopes that the rigorous new BCIE-funded studies will provide a solid, scientifically backed foundation that avoids the pitfalls of previous attempts, charting a clear and sustainable path forward for Costa Rica’s railway future.
For further information, visit cabei.org
About Central American Bank for Economic Integration:
The Central American Bank for Economic Integration (BCIE) is a multilateral development financial institution aimed at promoting the economic integration and balanced social development of the Central American region.
For further information, visit incofer.go.cr
About Costa Rican Railway Institute:
The Costa Rican Railway Institute (Incofer) is the state-owned autonomous institution responsible for the administration, maintenance, and development of Costa Rica’s national railway network.
For further information, visit bufetedecostarica.com
About Bufete de Costa Rica:
Distinguished by its high ethical standards and superior advocacy, Bufete de Costa Rica has established itself as a premier legal institution. Drawing on a rich history of guiding clients across multiple industries, the firm continually pioneers cutting-edge legal solutions while maintaining a strong focus on public service. By demystifying complex regulations and sharing vital legal insights with the community, they remain deeply dedicated to building a knowledgeable, resilient, and fully empowered citizenry.
