MR DE DIOS OLAECHEA: (Via interpreter) Last year I received a call from the mayor, who had a challenge for me for people from Lima. I can only tell you, Mr. Mayor, we did it. The dream has just begun and it is an accomplishment.
Now I have another challenge for you, Mr. Mayor and other representatives here today. Let's come back here next year and let's celebrate that next year more than 200 million people from Lima can go from Lima to Chosica in these cars, gallery cars with all the commodities and comfort from Caltrain trains that already traveled from San Francisco to Silicon Valley. As the president of the railway center, I thank all the people who have been involved, because Lima cannot wait, and welcome everybody for - to this celebration. (Applause.)
MR ASPLUND: (Via interpreter) Good morning. I would like today to introduce Michelle Bouchard from Caltrain. She is the executive director. (Applause.)
(In English) It's my pleasure to introduce Michelle Bouchard, executive director of Caltrain, for remarks. Thank you. (Applause.)
MS BOUCHARD: Gracias y buenas tardes. I have the honor of serving as Caltrain's executive director. We run the railroad between San Francisco and San Jose running through the heart of Silicon Valley. I'm here on behalf of my board of directors and the many folks on the Caltrain staff who have worked hard to make this happen.
It's truly a special day. It's a special day for Caltrain and also a special day for the municipality of Lima and the people of this region. We are celebrating the donation of Caltrain's long-serving diesel commuter rail fleet to Lima and the start of a new era of sustainable, equitable, and reliable regional transit, as will be demonstrated by the east-west passenger rail project.
This agreement is a testament to the strength and durability of the U.S. and Peru's longstanding and mutually beneficial relationship. I am so proud to have Caltrain be a member of that mutually beneficial relationship.
In September, this past September, Caltrain completed the electrification of our main line between San Francisco and San Jose. And what this means is that we are running 100 percent renewable, state-of-the-art, zero-emission trains. Our transition from diesel to electric makes today happen.
And of course, great projects need great collaboration and partnership. So I'd also like to acknowledge the partnership between many people and organizations here, including the U.S. Department of State, U.S. Department of Commerce, the U.S. Embassy in Lima, the mayor, his staff, RDC, and the FCC team - CCA team. This agreement will support Peru in its sustainability and mobility improvements, and our former Caltrain passenger cars and locomotives will enable the start of new commuter service in greater Lima, cleaner air for commuters and community members, and the access to opportunity that great public transportation provides.
I look forward to returning to this great city to ride these trains when they're in revenue service carrying 200,000 passengers a day. Thank you very much. (Applause.)
MR ASPLUND: Gracias, Michelle. (In Spanish.)
(In English) In this moment I want to in troduce Rafael López Aliaga, the mayor of the Municipality of Lima. Sir. (Applause.)
MAYOR LÓPEZ ALIAGA: (Via interpreter) Good afternoon, everyone. Your Excellency Antony Blinken, U.S. Secretary of State of the United States of America; Dr. Raul Perez-Reyes, Peruvian Minister of Transport and Communication; dear Ambassador Stephania Syptak-Ramnath, the ambassador of - U.S. ambassador to Peru; dear Executive Director at Caltrain Michelle Bouchard; dear Dr. Patricia Juárez, congresswoman, vice president of the Peruvian congress; Mr. John Camino Cannock, vice minister of foreign relationships; Your Excellency Brian Nichols, sub-secretary of international affairs at the United States and a great ambassador to Peru; dear brother Juan de Dios Olaechea, executive president of the railroad central; Mr. Henry Posner, president of Railroad Development Corporation, partners in at one moment of an entrepreneurship we had together; Dr. Renzo Reggiardo Barreto, sub-mayor of Lima; Dr. Javier Hernandez, president of ATU; dear people:
Today it has been a significant moment. We have a change from diesel to electric, but a diesel that has a lot of quality and standard - American standards that replaces - replace in different - a different quantity of traffic, a non-planified traffic in the orbit of Lima, which is very chaotic, as you may know, specifically in the east area.
This project is joining a vulnerable population with an ecological damage, with a social damage, with a lot of corruption - they have been forgotten for a lot of years. We are closing a gap, a very important gap. We have a debt with the City of Lima, with Peru, with the east part of Peru - of Lima. Also we're, like, dreaming for the Callao population.
I have a short period of time but I want to mention this. We've taken a lot of days, hours, especially with lawyers who are very special persons, very empathic persons. This is an open opportunity through the Ministry of Transport and Communications. He's a very respected person. This is a very respected sector as well. We need to see the legal way not only to think in Lima. We have the same issues in cities like Huancayo, the same problem. We have the same problem. Also in Cusco we are facing the same problem; from Cusco to Urcos is very chaotic. There's a lot of informality. There is ecological damage due to the great number of cars that we have there. And you know the standard of FCA as well level three, which is the maximum, that also we're taking into consideration air conditioning for areas which are very warm.
So we are changing the life. We are giving them a different level of life. That's why we are included in politics. We need to think in Juliaca, which is located in Puno. We have like a chaotic traffic there. There's a railroad line, and the Ministry of Transport and Communication can work on that.
We continue dreaming. Arequipa is another example. Crossing Arequipa with a train system, with a short train system, this is a win-win situation because the matrix has been changed - diesel of quality, as in United States, into electric. Someday we're going to get to the electric system and for that we're going to have a different meeting like this one for a second donation of - of this change of matrix. But I don't know, this is just a dreaming. This is just a dream I'm mentioning now.
I have such a short period of time but we need to have this initial convoy of just one way from Chosica to Callao, just one way, and then we can start building that second way to make the different route to have a 20 locals. And I mentioned this with 30 years of experience in locals - it's a lot of - for Lima. And with 90 cars with double-floored with air conditioning represents a lot of work. In transportation it is normal we can - it can be paid. Any person receiving a donation will - will have to pay the fleet. It is normal for any donation contract that we pay for the transportation to receive it; you put it in San Francisco and you bring it to Lima.
Now there is a cost because there are costs for the spare parts. There is a warehouse also for the spare parts. There is a cost for storage previously to the boarding. It's a big boarding. We're talking about 90 - 90 cars with more than 20 locals. There is a storage cost for that.
There is a symbolic cost. It's not over $6 million. Here we're talking about an opportunity cost because the Municipality of Lima wants to provide this quality service. Also I have the experience in trains. As you know, it would take, like, four years to get ready, and it wouldn't be of stainless steel as we have it now. Probably the best bet would be $800 million. For that I - let me thank you on behalf of the people who doesn't have anything because this is - represents quality protecting the environment, and we are shortening a gap, social gaps. So claps for United States, claps for Peru. (Applause.)
I have something for Mr. Biden, President of the United States. Your Excellency Antony Blinken, I want to give it to you. It's a medal from the - it's the key of the City of Lima and only for presidents. And I know that in your hands he will get it because he will know all the love we have for him from Peru. I want to give it to you right now. (Applause.) It has its name: Joe Biden. All our love for you. (Applause.)
Now I also have something for you. I have the Lima medal that has the highest rank for our U.S. Secretary of State. This is a donation that almost reaches one thousand million dollars that together with $300 million from NASA that you have helped us. (Applause.)
SECRETARY BLINKEN: Gracias. Gracias. It's a great honor.
MR ASPLUND: (In Spanish.)
(In English) It's my pleasure now to introduce Raul Perez-Reyes, the Minister of Communication and Transportation of Peru. Thank you.
MINISTER PEREZ-REYES: (Via interpreter) Good morning, ladies and gentlemen. Dear U.S. Secretary of State Antony Blinken, Ambassador to Peru, Mr. Mayor, executive of Caltrain and also executive from Railroad Development company - Corporation; dear Juan de Dios; dear Ambassador Brian Nichols, that you have always been remembered here in Peru; dear friends, congresspeople; dear lieutenant mayor:
This is a very important moment because as the mayor has already said, we are talking about a donation that almost reaches one thousand million dollars. And it's not just steel or infrastructure. It has a purpose to help and improve the transport of this city, and we do this in a framework between two countries - a country but in general two countries that reflects this cooperation feeling between the U.S. and Peru that allow us to keep working not only in this area but in other areas that we have already been working. We have already been talking about this yesterday that our president had a conversation with President Biden, and it reflects the politics that we have had with the U.S. In two years we will reach 200 years of bilateral cooperation and we are going to reach many, many, many goals. And we know that when we reach 200 years we are going to make it sure that these trains keep working and ours are working and make this concrete event and make these relationships continue.
And as the mayor mentioned, it's going to improve the transport in our city. We have some projects in the making, line two that is ongoing. There are some difficulties but we are still working on these, and in '28 - '28, that's the year that we will reach to have the final. But next week we are already launching the line three and line four that go together with this donation that is urban transport through trains.
And we know that in general what matters is that the train - and it's very important - we are not only going to improve areas, urban areas, but also the footprint, the CO2 emissions of those transport, because we will reduce CO2 emissions. Lima is the only - and the capital of a Latin American country, the only one that has access to the coast. And we should have the purest air of Latin America. But when we see what we have been dealing with in 20 years, it doesn't make sense.
So we need to make it work. Transport, urban transport, and through trains is going to help us. We are going to keep working with these. We are talking with Rafael. There are other executives of Caltrain here, Railroad Development Corporation executives. When they want to replace any kind of machinery for any technological innovation through - we'll consider that this infrastructure can help us connect our citizens, and it will allow us to connect and continue with the highest standards that you have in the United States, and that's the one we want to replicate here in Peru.
This is what I wanted to tell you. Our president wanted me to thank you for all this donation and all what you have been doing here with our mayor, because it's going to help improve the quality of life of our citizens. Thank you very much. (Applause.)
MR ASPLUND: (In Spanish.)
(In English) It's my pleasure to introduce Mr. Antony Blinken, Secretary of State of the United States of America. (Applause.)
SECRETARY BLINKEN: Buenos días. So good to see everyone here today. And let me first start by saying, Mr. Minister, Mr. Mayor, to our great friend from Caltrain, Michelle Bouchard, the ambassador, our entire diplomatic and commercial team, all of our friends here today: Thank you for your leadership on this project - a project that will do so much to strengthen the ties between Peru and the United States.
"Everybody loves the sound of a train in the distance." Paul Simon, one of our great poets, wrote that line in one of his songs, and I think it speaks powerfully to each of us. Trains connect people. They bring communities together. They take distances down between us. And they are not just a symbol, but the practical manifestation of possibilities - the possibilities that come when we connect to each other. They're so much a part of the national mythology of the United States, our own extraordinary construction project. And I'm so grateful today to be part of this project in helping create greater connectivity here in Peru.
And so this is an exciting day in our partnership: The United States will support the City of Lima as it develops the new passenger train line that's going to connect downtown to the eastern suburbs. The Caltrain rail system in California, as you've heard already, will contribute more than a hundred high-quality railcars and engines, and American companies will provide over 50 percent of the services for this project and the supplies for the project, from signaling equipment to railroad tracks to engineering and design expertise.
When it's finished, this rail line will expand access to reliable, affordable transportation for some 200,000 passengers every single day. It will reduce traffic and congestion. It will give more people more options to get where they need to go, faster, more efficiently. It will help tourists experience more of this truly extraordinary city. It will help workers spend less time getting to and from their jobs.
And as you've heard, the trains will also cut greenhouse gas emissions by an estimated 20,000 metric tons every year. That's the equivalent of taking 4,000 cars off the roads.
This collaboration between us seeks to address challenges that are facing cities across our hemisphere: aging infrastructure; a shortage of affordable, efficient public transportation; congested streets; rising pollution.
Together, we're making progress by drawing on the dynamism of both of our societies.
Now, this project started with a vision - the vision of leaders from across Lima's city government. It's been fueled by cooperation between American and Peruvian companies, including the Railroad Development Corporation and Ferrocarril Central Andino, and it's moved forward because of partnerships - partnerships that brought together officials from all levels of our governments: our State Department and Commerce Department; the Peruvian Ministry of Transport and Communications and other agencies across the Peruvian Government; California's governor's office of - Governor's Office and their Air Quality Management Board; regional transportation authorities in both of our countries, including Caltrain.
Now, what's interesting is if you took any one of these elements out of the equation, the project wouldn't have come together. Everyone was essential for bringing us to this day. And I think it's a powerful example of how city and state leaders are driving solutions for some of today's most pressing issues. And when these local officials can share their ideas with each other, and when they can bring national governments, businesses, civil society, and other partnerships into their efforts, we all stand to benefit. And I'm convinced there's no problem we cannot solve.
And that's one of the reasons the State Department created the Office of Subnational Diplomacy back in 2022 - to foster more efforts like these.
Over the last two years, thanks to the work of its leader, Ambassador Nina Hachigian, and her team, we've engaged with more than 5,000 mayors, governors, other leaders at the subnational level in tackling issues that matter most to the people we are all here to represent and to serve.
We've fostered greater collaboration between local officials across the region on everything from addressing the scourge of illicit opioids, to fighting the climate crisis, to building better infrastructure.
We've developed new partnerships, like the one we announced earlier this month between the Port of Hueneme in California and the Port of Paita here in Peru. Their collaboration will help us grow our trade relationship, advance economic development in these regions, and find ways to make our ports and shipping industries more effective, more secure, more sustainable.
In December, Ambassador Hachigian will also bring a delegation of U.S. mayors here to Lima, to meet with their Peruvian counterparts, to share best practices, to build trust with their constituents, to provide transparent service delivery, and so many things that matter in the lives of our people.
And that's really what it comes down to. At its heart, for all of us, any government initiative is about the people that we're here to serve and who will benefit from it. Our focus has to be, as it is with this project, how we're going to improve the everyday lives of our fellow citizens. With each project, with each partnership, with each connection that we build between the leaders of our countries, at every level, we will build a more prosperous, more secure, a better future for all of the people that we have the privilege of representing.
So to each and every one of you who brought us to this day, muchas gracias. Thank you. We're so grateful, and I can't wait to hear the whistle of the train. (Laughter.) Thanks, everyone. Gracias. (Applause.)
MR ASPLUND: (In Spanish.) (Via interpreter) So thank you, Mr. Secretary. So bring the papers to be signed.
(In English) It's my pleasure. I'm going to pass the folios to alcalde and to Michelle Bouchard to sign the documents where we start this project, today and right now. Thank you.
(The documents were signed.)
(Applause.)
MR ASPLUND: (In Spanish.)
(In English) I'm inviting the dignitaries to go in front of the stage for photos of this incredible team and this incredible event. Thank you. (Applause.)
Mr. Secretary, thank you so much for your visit and experiencing this momentous occasion.
