Cusco -01 de Febrary 2009

THE SITUATION IN CUSCO AFTER THE FLOODS

An unusually fierce and destructive rainy season caused the river basins of Cusco to significantly increase their capacity at the highest historical levels, causing fallen bridges, destroyed roads, highways and railways, housing losses (over 27,000 homes across the county) and tens of thousands of hectares of crops damaged or lost. This is a situation of the highest gravity.

Emergency Response:
Civil defense systems were initially overwhelmed by the emergency, but quickly responded, some of them optimally. For example, the evacuation of 4,005 tourists from the town of Aguas Calientes (the nearest urban center to Machupicchu) was spectacular. Twelve helicopters made close to 92 flights a day evacuating visitors back to Cusco. After the first shock and resulting disorder, this success was achieved with the participation of military rescue teams and groups from the private business sector who established priorities and evacuation protocols. We salute the great courage and solidarity that have become manifest in this time of crisis.

The results of the crisis:
We have some bad news, that will definitely affect our business, There are 8 spots where the train rails were seriously impacted; there are large areas of the road system and highway that have been damaged. However, there are solutions in the short and medium term on which work is being done.

Difficulties:
It is estimated that it will take about 7 weeks from today (2 February) to restore the railway so that Machu Picchu may be reached from the south entrance. Estimations are that it will take 3 weeks to restore the northern entrance road (from Aguas Calientes to the hydroelectric power station). Fetransa, the concessionaire of the railway, will be responsible for this work. There are also some stretches of highway that require significant work, including access to Piscacucho from Ollantaytambo, from which the first trains will run.

Another critical stretch of railway for which the government will be responsible and as quickly as possible, is from the Hydroelectric to Santateresa, from there to Santa Maria and from there to Ollantaytambo via Abra de Malaga.

The good news:
The Government will grant emergency permits to companies to operate Helicopter flights to Aguas Calientes. These will be Temporary Licenses until therailways are fixed. In other words, visits to Machu Picchu will not stop. The current demand is about 1,500 passengers a day. That will lower the abilityof the helicopters to meet those needs, but will provide an alternative.

Three companies have already announced they will request the route: Helicusco, Helisur, Heliand, as well as Peru Rail will also operate Helicopters. It is true that the price will go up by an average of $ 300 to $ 500 more perpack, but at least you can make the visit. When roads are restored everything returns to normal.

Starting on Wednesday, 3 February we will have more detail about:
The Northern route to Machu Picchu (Via Santa Teresa):
If the land route north is repaired on schedule, we would have additional access to Machu Picchu by late February. Naturally, this operation is not optimal and would require at least an overnight (ideally 2) in the area before operating regularly via Santa Teresa. Before announcing the operation of this route we will have to see that this route is secure.


The message to the operators and tourists:
Machu Picchu is absolutely intact. In more than 1000 years, no site built by ancient cultures has suffered landslides or mudslides; this is because the site was built in an appropriate place and drains were included by our very skilled ancestors. The only crisis occurred in the access to Machu Picchu. All the other places to visit, services, hotels, attractions, are fully operational. Peru and Cuzco itself have many other places and sites to visit with new experiences around every corner. A visit to Machu Picchu is not only possible but it is extraordinary given the skills and foresight of the Inka when building it. Peru was unique and wonderful before this crisis and it remains unique and wonderful. The rain (the worst in more than 50 years) have ceased, and the capacity of the rivers are at historic levels. There is significant loss in rural households in the areas of Cusco and Puno, but the government has the resources to provide aid and to restore the lost infrastructure. Some private infrastructure has been lost. However a large majority of services have not been damaged. Milla Turismo