Fatal Train Crash Near Machu Picchu Raises Railway Safety Concerns

A head-on collision between two passenger trains on the railway leading to Machu Picchu on December 30 left one person dead, dozens injured, and sparked questions about what caused the crash on one of Peru’s most critical tourism routes.

The incident occurred in the early afternoon on the Cusco-Machu Picchu railway, which transports approximately 3 million passengers annually to the ancient Incan citadel. In addition to the fatalities and injuries, roughly 2,000 passengers were stranded for approximately 12 hours before evacuation efforts could be completed.

Investigating the Collision

Peruvian authorities are investigating the circumstances surrounding the crash. In a letter to Peru's prime minister, Belmond Ltd—a luxury hospitality subsidiary of LVMH Moet Hennessy Louis Vuitton SE—claimed that an Inca Rail train operated by a company majority-owned by Carlyle Group traveled approximately 400 meters beyond its assigned stopping point before colliding with a PeruRail train traveling in the opposite direction.

The railway where the incident occurred operates on single tracks through mountainous terrain, requiring strict coordination between operators. Trains traveling in opposite directions must stop at designated points and use occasional detours to allow passage. According to Belmond's account, the Inca Rail train was scheduled to stop and wait for the PeruRail train to reach a detour point before proceeding.

Inca Rail has stated that drawing conclusions before authorities complete their investigation "may generate biased interpretations of facts that are still being verified." The company confirmed it is cooperating with investigating authorities and expressed solidarity with victims, including the Inca Rail train driver who was killed in the collision.

The Railway's Operational Structure

The incident has brought attention to the complex ownership and operational structure governing the route to Machu Picchu. Belmond operates as the dominant player through two separate joint ventures. Through PeruRail, the company runs luxury train services that captured 74% of market share in 2024, according to government statistics. Through Ferrocarril Transandino, Belmond also operates the railway concession itself.

Inca Rail, which held approximately 26% of market share in 2024, operates its trains on the same tracks under this concession arrangement. This structure means Belmond not only competes with Inca Rail for passengers but also manages the infrastructure on which its competitor depends.

Machu Picchu is not accessible by road, making the railway essential to Peru's tourism industry. Visitors must either take the train or undertake multi-day hikes to reach the site, which stands as Peru's most popular destination among international tourists.

Questions Raised by the Incident

The collision has prompted examination of operational protocols, infrastructure management, and safety systems in shared transportation networks. Investigators will need to determine what circumstances led to the two trains being on the same section of track at the same time, a scenario the railway's coordination system is designed to prevent.

The incident occurred on infrastructure critical to Peru's economy. Tourism officials have confirmed that train service has resumed normal operations and that structural surveys found no damage to the tracks. However, the collision has raised broader concerns about passenger safety, regulatory oversight, and the operational procedures governing high-traffic tourist railways.

What Comes Next

As Peruvian authorities continue their investigation into the train collision, the findings will be critical in establishing the sequence of events and determining whether changes to operational protocols or safety systems are warranted. The investigation must address not only what happened but also whether existing safeguards were sufficient and what measures might prevent similar incidents in the future.

The railway between Cusco and Machu Picchu continues to operate, transporting thousands of visitors to one of the world's most renowned archaeological sites. For the victims of the December 30 collision and their families, the investigation's findings will be essential in providing answers about what occurred and establishing accountability for the tragedy.

At Arnold & Itkin, our hearts go out to all those affected by this tragic event.