According to the Colombian Chamber of Infrastructure, the current lack of multimodal transportation adds an estimated 80% to the cost of moving coal.

US-based and Colombia-focused coal miner Colombia Energy Resources said it expected the newly announced developments to streamline its metallurgical exports.

“The revitalized rail and river transportation system will be a tremendous boost to our outlook for long-term growth and increasing profitability,” Colombia Energy Resources chief executive Ronald Stovash said.

“Currently we can only make use of truck transport. While still economical for us, it is far less efficient and cost effective versus rail or water modes of transport.”

The San Francisco-based miner’s enthusiasm for the revitalized infrastructure plans comes as a shift in Colombian coal export strategy has stoked concerns among other US producers.

Earlier this month, Colombian policy makers indicated an intention to refocus coal exports toward China rather than traditional American and European markets, a move expected to erode US coal exports to the Asian giant.

Colombia’s Infrastructure National Agency president Luis Fernando Andrade Moreno said the government wanted as much foreign participation as possible in the export overhaul.

“This is the most ambitious program that we’ve ever undertaken in Colombia for infrastructure and I think it’s a great opportunity for US companies.”

The project calls for the restoration of 1672km of rail, only 55% of which is currently in use.

Construction of new rail systems and branches is also planned.

National authorities and local municipalities will invest more than $135 million over four years in order to restore navigability to 1500km of the Magdalena.

This is expected to increase transportation capacity from 35 million tons annually to 90Mt by 2018.