Uruguayan state-owned rail firm AFE's project to repair and upgrade the Pintado-Rivera railway will wrap up by June this year, according to AFE president Alejandro Orellano.
The national government is investing US$30mn in the railway, which connects capital Montevideo with northeastern town Rivera on the Brazilian border.
Work on the railway, which began in October 2009, will allow trains to travel at 40km/h. The government eventually aims to repair more rail lines to reach this speed across the entire rail network, as poor conditions currently force trains to slow down to prevent accidents.
AFE is working with Brazil to resolve the issue of different rail gauges, as Uruguay's gauges measure the standard 1.4m, while Brazil's measure 1m.
The rail firm is also working national port authority ANP on a dry port in Rivera that would receive cargo transported via the rail line, according to a presidential release.
AFE has a 3,000km rail network, of which 1,600km is currently operational.