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The Korea Rail Network Authority (KRNA) has secured a contract to carry out a feasibility study into a light rail project in Paraguay, marking its entry into the South American railway market.

The move forms a part of the Paraguayan Government’s plans to establish commuter rail services in the country.

The project is initiated by the government and is supported by state-run agency Facultad de Ingeniería de la Universidad Nacional de Asunción in South America.

"KRNA will strive in its efforts to win subsequent contracts in the field of railway design and construction."

The International Rail Journal reported that the 44km-long five-station route will connect Asuncion Central station with Areguá and Ypacarai, using the alignment of the Uruguayan Railways line from Asuncion to Villarica.

KRNA was quoted by The Korea Times as saying: "On the basis of this contract, KRNA will strive in its efforts to win subsequent contracts in the field of railway design and construction.

"KRNA will secure a bridgehead for Korean private companies to participate in Paraguay’s rail construction project in the future."

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By GlobalData

The Korean rail authority has partnered with Asuncion University for the project. KRNA said that the work on the project will begin within this month and is expected to be completed by the year end.

Upon completion, the $1.09m light rail project is expected to reduce traffic congestion in Asuncion, the capital city of Paraguay.