Bolivian President to Nationalize Railways

Bolivia's president has announced plans to nationalize the country's railways.

Speaking at the opening of a tourist railroad outside the capital, LaPaz President Evo Morales said Bolivia will retake control of Empresa Nacional de Ferrocarriles or ENFE.

Bolivia had sold a controlling share of ENFE in 1996. If the nationalization goes forward, Bolivia will have to buy back shares from Chile's Luksic Group and the U.S. firm Genesee and Wyoming.

Since taking office last year as the country's first Indian president, Mr. Morales has declared his intention to resume government control of many previously state-run industries.

Bolivia nationalized the oil and gas sector last year and is currently negotiating with Telecom Italia to buy its controlling stake in Bolivia's former state telecommunications company, Entel.

Some information for this report was provided by AFP and AP.