A sum of US$250 million will be invested in the resuscitation of the country’s cargo and passenger rail service by the Government and several investors, including United States (US) company Herzog International.

The project will be undertaken in segments. Phase one will see the development of the Montego Bay to Appleton leg. This is slated to get under way before the start of the winter tourist season in 2017.

The others are Phase 2a — Spanish Town to Ewarton, Spanish Town to Clarendon Park; Phase 2b — Appleton to Clarendon Park; Phase 3 — Spanish Town to Kingston; and Phase 4 — Connecting Vernamfield to the existing main line.

A non-binding memorandum of understanding (MOU) to formalise the arrangement was signed by the Ministry of Transport and Mining, through the Jamaica Railway Corporation (JRC), and Herzog Jamaica Limited, which is a subsidiary of United States-based Herzog International, at the ministry’s Maxfield Avenue offices in Kingston on Friday.

The signatories included portfolio minister Mike Henry; Chairman, Jamaica Railway Corporation Ferris Ziadie; and Herzog representatives Dr Sean Matthew and William Gilbert.

Henry said the Government will undertake a cadastral survey to identify boundaries of lands owned by the JRC that are intended to be included in a legally binding lease agreement.

He said the revitalisation of the rail system has the potential to significantly transform the economic landscape along the rail corridor through tourism, freight, land development, communication and commuter services.

The minister pointed out that upwards of 100 people will be employed to the project initially.

Meanwhile, Dr Matthew noted that more than 200 kilometres of rail will be developed, and that the Government’s intermodal plan can become profitable for everyone.