A tragic head-on collision between two tourist trains on the iconic route to Peru's Machu Picchu has claimed a life and left dozens injured, casting a spotlight on the global financial interests behind the vital railway service. The fatal crash occurred on Tuesday, killing one train driver and injuring many passengers.
Global Investors Behind the Railway
The crash involved trains operated by PeruRail SA and Inca Rail SA, companies with significant backing from international investment heavyweights. Paris-based luxury conglomerate LVMH Moet Hennessy Louis Vuitton holds a stake in PeruRail. This investment came through its 2019 acquisition of Belmond Ltd., a high-end travel business. Belmond not only owns part of PeruRail but also holds a 50% stake in Ferrocarril Transandino SA, the company with the concession to operate the very railway line where the accident happened.
On the other side, the train operated by Inca Rail SA is majority-owned by a unit of the American private equity giant, Carlyle Group Inc.. Carlyle entered the Peruvian rail tourism market around a decade ago, funding upgrades for Inca Rail on the scenic route that winds along the Urubamba River in the Sacred Valley. Representatives for both LVMH and Carlyle did not immediately respond to requests for comment on the incident.
Response and Aftermath of the Crash
In the wake of the disaster, both companies have initiated emergency protocols. PeruRail stated on Wednesday that it had successfully evacuated approximately 2,000 passengers to a nearby town in the early morning hours and was working to restore its train services. Inca Rail, in a regulatory filing on Tuesday, confirmed it immediately activated safety and emergency procedures and is cooperating with authorities to determine the cause of the collision.
This incident strikes a severe blow to Peru's crucial tourism sector, which has been painfully rebuilding after the Covid-19 pandemic. Machu Picchu, the remote UNESCO World Heritage site in the Andes mountains, draws over one million visitors annually. Most tourists rely on this railway, as the site cannot be accessed directly by road.
Scrutiny on Infrastructure and Safety
The crash underscores how global capital is deeply entwined with critical tourism infrastructure in remote destinations. The involvement of firms like LVMH, which markets luxury train journeys with "exquisite Peruvian cuisine" and vintage cocktail bars to affluent clients, and Carlyle, which saw value in upgrading the tourist route, highlights the commercial significance of this corridor. The accident now raises urgent questions about operational safety standards on a line vital to Peru's economy.
As investigations proceed, the focus will be on the causes of the head-on collision on a railway with narrow rights-of-way. The tragedy serves as a stark reminder of the responsibilities borne by international investors operating essential public transport services in challenging geographical terrains.
