Revista 68 213 Desarrollo y Sociedad II semestre 2011 Railroads in Peru: How Important Were They? Ferrocarriles en el Perú: ¿Qué tan importantes fueron? Luis Felipe Zegarra* Abstract This paper analyzes the evolution and main features of the railway system of Peru in the 19th and early 20th centuries. From mid-19th century railroads were considered a promise for achieving progress. Several railroads were then built in Peru, especially in 1850-75 and in 1910-30. With the construction of railroads, Peruvians saved time in travelling and carrying freight. The faster service of railroads did not necessarily come at the cost of higher passenger fares and freight rates. Fares and rates were lower for railroads than for mules, especially for long distances. However, for some routes (especially for short distances with many curves), the traditional system of llamas remained as the lowest pecuniary cost (but also slowest) mode of transportation. Key words: Transportation, railroads, Peru, Latin America. JEL classification: N70, N76, R40. * Luis Felipe Zegarra is PhD in Economics of University of California at Los Angeles (UCLA). He is currently Professor of Economics of CENTRUM Católica, the Business School of Pontificia Universidad Católica del Perú (PUCP). Contact
[email protected] . The author thanks the assistance of the staff of the National Library of Peru, the Central Library of PUCP and the Instituto Riva Aguero-PUCP. This paper was received September 28, 2011, modified October 5, 2011 and finally accepted October 28, 2011. 214 Railroads in Peru: How Important Were They? Resumen Este artículo analiza la evolución y las principales características del sistema ferroviario durante el siglo diecinueve y principios del siglo veinte.