A new railway station is under construction in Encarnación to improve transport links between the city and its Argentine neighbour, Posadas. The project is being carried out by FEPASA – Ferrocarriles del Paraguay S.A., the country’s official rail company. It is being built on the site of the existing station. The aim is to complete the work on the new structure by 7 August, coinciding with the completion of upgrades at Teniente Ramon Amín Ayub González Airport.
Paraguay’s last active railway station
Railway transport in Paraguay has experienced its share of highs and lows. The country was the first in South America to have railways. In Asunción, the Tranvía Belga operated until 1997, resembling the tramway in San Francisco, United States. The last passenger train in the capital region ran until the early 2000s. Although trains no longer operate in Asunción, you can still visit the historic railway station opposite Plaza Uruguaya in the city centre.
The railway linking Posadas and Encarnación commenced operations in late 2014. In 2025, it remains Paraguay’s sole active rail service. During the coronavirus pandemic, transport between these two major cities was suspended. The Encarnación station stood empty until both governments collaborated to restore the transit system, vital for the region’s economic growth.
Recently, the service has been halted for urgent maintenance on the Paraguayan side. It remains uncertain when operations will resume.
While the government is advancing the Bioceanic Corridor project, it has no plans to include passenger rail. Asunción had proposed a railway connecting the airport to the city centre, but progress on this has stalled for now.
New border regulations introduced
The governments of Paraguay and Argentina have agreed on new policies and regulations to be implemented at the Posadas railway station. Under a Mercosur agreement, both countries will establish a joint border office on the Argentine side. This will streamline processes and improve the migratory flow for train passengers. The system will remain in place until 28 July, when it may be extended to those travelling by car or bus. Approximately 3,000 people have crossed the border since the regulation was introduced.
Previously, it was quite challenging for Paraguayans to travel across the border to Argentina in this region. Immigration checks were conducted at each railway station, significantly increasing waiting times. This differs from the Triple Frontier area of Ciudad del Este, Foz do Iguaçu, and Puerto Iguazú, which is treated as an exemption zone. While travellers to Argentina still need to stop, less paperwork is required. In Encarnación and Posadas, the new system will align more closely with this approach.
Transport enhancements in Itapúa
The new international railway station forms part of several construction projects in the Itapúa Department. The Teniente Ramon Amín Ayub González Airport (ENO) is expanding its capacity and services. A temporary terminal is being built, which may become permanent to meet future demand.
Encarnación expects an influx of visitors as it hosts the World Rally Championship (WRC) in August. The city will also host events for the 2nd Panamerican Junior Games, officially held in Asunción, during the same month. Travellers arriving by plane from Asunción, train from Posadas, or bus or car from other parts of Paraguay, Argentina, or Brazil will converge on Itapúa’s capital for these sporting events.
The Paraguayan government has also improved roads in the Itapúa Department, enhancing connectivity along Route 7 between Carlos Antonio López and Mayor Otaño, on the border with Alto Paraná Department. This key transport route links Encarnación to Ciudad del Este.
