The Pan-American Railway

[Huojin]

The Pan-American Railway

A new proposal born from the considerations and plans which emerged from the First Pan-American Conference in 1889 is now a reality. Jointly owned by the governments of Mexico, Guatemala, Centroamerica, Costa Rica, and Colombia, the Pan-American Railway Company is to begin the creation of a railway network connecting the capitals and principal cities of the aforementioned nations, providing new possibilities of trade, commerce, and prosperity. Making use of existing lines and tracks where possible, this project will interlink American republics in a way never before seen - and with the possibility of being expanded throughout South America in cooperation with the governments there, promises to be a feat perhaps exceeding the Suez Canal, or the Great Wall of China.

This leaves open a very exciting opportunity: the Pan-American Railway Company will be opening the construction, operation, and management of large segments of this railway to international tender, granting the necessary concession contracts for these purposes. The Company shall be sole owners of the railway, and as is typical in concession contracts, sole recipient of the revenue derived from it - however, an agreed fee amounting to half that revenue shall be paid to the necessary concessionaires for their services in respect of the railway network. The concession shall last for a 25 year renewable term, with the governments of the relevant territory over which tracks pass being responsible to the concessionaires for defending their operations.

We presently estimate the total value of all of the concession contracts to be [200 to 600 credits]. This obviously leaves extensive room for numerous companies or national interests to tender bids, and for all to receive the benefits of this project. It may well be noted that this project, through encouraging inter-state commerce in Latin America, may well facilitate increased profits for those nations which are the primary trading partners of Latin America - I speak, of course, of the European nations, with whom Latin America has long held friendly ties of trade.

Proposals may be tendered here publicly, with private discussions as to particulars or negotiations made in private. However in the interest of a transparent and competitive bidding process, we request that all formal bids be placed here. Parties may also declare their interest here.


((Having spoken to Dr. MoO PhD, the present plan is that a bonus of around +40 would be created for the railway, with that split 50-50 between Company nations and Concession nations. If more is invested and a larger, more complete, more modern railway network created, I would anticipate a larger bonus being created.))

[Serenissima]

The government of the United Kingdom may have interest in this venture, provided that the railway plan expand in order to connect Belize City in British Honduras to the network, and a suitable trade treaty to allow the resulting Central American goods to be purchased in British Honduras at favourable rates, be signed. This spur of the railway would be useable by the Pan-American Railway company under commercial terms to be discussed, but the track in that territory owned and operated by the Crown government of British Honduras.

Her Majesty's government gathers that the British company to tender a contract to be part of the construction of this railway, particularly the Belize City spur but also in general with technical expertise and assistance, would be the railway and machinery builders Clayton & Shuttleworth Ltd. Furthermore, we enquire as to the planned gauge to be used - use of the Standard Gauge of 4 ft 8 1⁄2 in, if it is materially feasible, would permit for a greater degree of British investment in such a project. A narrower gauge project may be feasible, and cheaper, but would limit the degree of possible international investment and profit for the Pan-American Railway.

[Huojin]

The Pan-American Railway Company would welcome an arrangement with the British Government and Clayton & Shuttleworth Ltd. The Company intends fully to use standard gauge track throughout its length, as the majority of the assets involved are already in this gauge.

As to an expanded plan, the Company will, in the event of British investment at a certain level, welcome the opportunity to expand the network towards British Honduras. However due to the nature of the Company and the way ownership of the rails would function from an administrative standpoint (and for the purposes of securing project finance arrangements from domestic sources), any arrangement would likely require either the railway branch to be Company owned or, given that this is probably unacceptable to the British government, for the necessary expansion branch to be funded separately by the British government so far as it resides within British Honduras. It would then connect to the Pan-American Railway at the border.

This is in large part due to the ownership arrangements drawn up between the Company owners and members, but also due to the fact that British Honduras has no railways of itself to speak for, and remains largely isolated from the rest of Latin America. We would welcome the chance to re-integrate them, though. The necessary reciprocal trade treaties could of course be arranged.

[Serenissima]

We are in understanding; then, as that arrangement you describe of it merely connecting rather than being part of it, and being separately funded, was our intention.

[Huojin]

Excellent. The Pan-American Railway Company looks forward to examining any bid made subsequently by the British Government and Clayton & Shuttleworth Ltd.

We are also glad to announce that negotiations with a number of other companies are underway, and we anticipate a healthy, competitive bid process. We thoroughly encourage all interested parties, including those who have yet to make contact, to tender bids, express interest publicly, or begin private negotiations.

[Tardis218]

The Austro-Hungarian government is willing to put in 200 credits into the Pan-American Railway. We hope that this will lead to success for everybody involved, the British Empire, Mexico, the various other Latin American nations, and us.

[Huojin]

On behalf of the Pan-American Railway Company, we graciously receive the Austrian bid for this project, and look forward to considering a number of bids that are in the process of being drawn up by a number of other parties. The PARC has also been in consultation with relevant engineering authorities ((read: the GM)) and have assessed the maximum level of investment required for this project to be [500 credits]. Therefore we will consider all bids up to this limit, and may present an opportunity which will combine one or more proposed contracts in order to fully fund the project. We encourage all parties nevertheless to bid as far as they feel willing, as the Company will make arrangements for bid selection afterwards.

[Flamelord]

Naturally the government of France is very interested in this project, and what it will mean for trade and transportation in Central America. Trade is the lifeblood of the world after all, and this is a manner in which those states which have unfortunately languished in poverty can advance themselves and industrialize. Also money, money is good.

With that in mind, the French government will be placing a bid of 300 credits, to cover the area deemed most beneficial by the companies involved, with input from the relevant departments of the French government itself so as to coordinate and facilitate all necessary arrangements.

[Huojin]

Barring any further public bids made on this project, the Pan-American Railway Company is delighted to accept the successful bids of France and Austria. We anticipate this investment being made promptly [read: this turn] in order to ensure completion occurs quickly, and the resulting profits become available to all parties.

Attached are the pro-forma conditions and contracting details for the contract, though we do not anticipate difficulties on this account; their contents primarily providing for clarifying the terms, rights of parties, termination options, and so on.

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• The Company shall be sole owners of the railway, and sole recipient of the revenue derived from it.
• The concessions contracts for construction, operation, and management, appointed to French (3/5th) and Austrian (2/5ths) companies, shall last for a 25 year renewable term, and entitle them to a pre-agreed payment amounting to half of the revenue derived from the railway's operation
• The governments of the relevant territory over which tracks pass shall be responsible for defending the operation and personnel of the railway.
• The renewal of the concessions contracts for the operation of the railway shall be made only be joint agreement between the company and the concessionaires.
• Yearly meetings shall be held between the company and concessionaires on various terms of operation, including fares charged, services provided, and other administrative matters.
• In the event of default by concessionaires, the company retains a step-in right in order to secure the operation of the railway.
• Either party may terminate the agreement for: financial default, substantial breach of good faith, contravention or likely contravention of any term of this agreement, falling below pre-agreement benchmarks, change of control without consent, failure to issue payment to concessionaires, revocation of operator license, breach of law, breach of safety regulations, or a decline in service performance.

Congratulations gentlemen, and may we succeed in bringing Europe and America closer together.

[Flamelord]

The French government finds these terms to be acceptable. may this be the beginning of a new age of American integration and prosperity.

[Tardis218]

The Austro-Hungarian Empire also agrees to the terms. Let's hope for prosperity for all our nations in the coming years!