UAE and Paraguay Forge New Air Connectivity and Rail Links with Major Agreements
Aviation News Editor & Industry Analyst delivering clear coverage for a worldwide audience.
Abu Dhabi Airports and DINAC signed an MoU for Silvio Pettirossi International Airport development; this is part of a wider UAE-Paraguay infrastructure push.
Key Takeaways
- •Abu Dhabi Airports and DINAC signed an MoU to begin technical cooperation and pre-investment assessments for the development of Silvio Pettirossi International Airport (ASU).
- •Etihad Rail and FEPASA announced Heads of Terms for a US$450 million Urban Train Project in Paraguay, a 30-year concession expected to serve 40,000 daily passengers.
- •President Peña met with Emirates Group CEO to explore air connectivity, supporting Paraguay's goal of becoming a South American logistics and aviation hub.
- •The agreements reinforce the commitment to finalize the UAE-MERCOSUR Comprehensive Economic Partnership Agreement (CEPA), boosting economic ties.
The United Arab Emirates (UAE) and the Republic of Paraguay have significantly strengthened their economic and infrastructure ties following the official visit of Paraguayan President Santiago Peña to the UAE from February 2 to 5, 2026. The visit, which included participation in the World Governments Summit, resulted in key agreements focused on aviation, rail, and technology.
Advancing Air Connectivity and Airport Infrastructure
A major focus of the discussions was the development of Silvio Pettirossi International Airport in Asunción. The airport is seen as a crucial asset for expanding travel, tourism, and trade between the two nations and the wider region.
To advance this goal, a Memorandum of Understanding (MoU) was signed between Abu Dhabi Airports and Paraguay's National Directorate of Civil Aeronautics (DINAC).
This MoU focuses on technical cooperation and pre-investment assessments for the airport. This partnership leverages the UAE's global expertise in managing and developing world-class aviation hubs. The aim is to enhance the airport’s capacity and operational efficiency. Paraguay is actively seeking to position itself as a key logistics and aviation hub in South America.
President Peña also met with H.H. Sheikh Ahmed bin Saeed Al Maktoum, Chairman and CEO of Emirates Airline and the Emirates Group. Their talks explored opportunities to deepen cooperation in air connectivity and logistics development. This high-level engagement highlights the potential for new air routes and cargo links, strengthening Paraguay's integration into international markets.
Silvio Pettirossi Airport's Strategic Role
The focus on Silvio Pettirossi International Airport development is timely. The facility recently received clearance from the US Transportation Security Administration (TSA). This certification allows the airport to handle US-flagged aircraft. The approval is a significant milestone for Paraguayan aviation. It paves the way for the anticipated return of the Asunción-Miami route.
Rail and Urban Mobility Investment
Beyond aviation, the visit solidified a landmark agreement in urban mobility. Both sides witnessed the announcement of the Heads of Terms for the Urban Train Project.
This project is a joint venture between Etihad Rail, the UAE’s national railway company, and Ferrocarriles del Paraguay Sociedad Anonima (FEPASA). The initiative is described as the most important urban mobility project in Paraguay's modern history.
- Investment and Scope: The project involves an approximate investment of US$450 million. It will be a 30-year concession.
- Capacity and Impact: The electric train system will initially cover a 20-kilometer stretch to Luque, with plans for a later extension to 44 kilometers. It is projected to transport around 40,000 passengers per day, or 14 million annually. The system will use clean, renewable energy.
- Timeline: Feasibility studies are underway. Authorities estimate the system will be operational within approximately 36 months.
The Etihad Rail FEPASA Urban Train partnership is expected to generate significant socioeconomic benefits. This includes an estimated annual economic saving of US$150 million for users.
Broader Economic and Strategic Ties
The leaders also reaffirmed their commitment to finalizing the Comprehensive Economic Partnership Agreement (CEPA) between the UAE and the MERCOSUR bloc. Paraguay currently holds the pro tempore presidency of MERCOSUR. This agreement is expected to strengthen economic ties between the UAE and South America.
Discussions also covered strategic investments in technology, artificial intelligence, and advanced industries. The UAE welcomed collaboration on AI and digital transformation. This holistic approach to UAE Paraguay aviation cooperation and infrastructure signals a long-term strategic partnership. It positions Paraguay as a key gateway for the UAE into the Latin American market.
Trusted commercial aviation news and airline industry reporting are available at flying.flights. From aircraft production to supply chains, commercial aviation manufacturing news is covered at flying.flights/manufacturing.
Written by Ujjwal Sukhwani
Aviation News Editor & Industry Analyst delivering clear coverage for a worldwide audience. Covers flight operations, safety regulations, and market trends with expert analysis.
Visit ProfileYou Might Also Like
Discover more aviation news based on similar topics
Nigeria Considers Foreign Carrier Curbs to Boost Local Airlines
Nigeria is reportedly considering restricting foreign airline access to its primary hubs to foster growth for domestic carriers in international markets.
EASA Issues New Maintenance Directive for Airbus BelugaXL Fleet
EASA has issued a new airworthiness directive for the Airbus A330-743L BelugaXL fleet, mandating updated structural integrity inspection schedules.
CBI Seeks to Close Air India Aircraft Leasing Irregularities Case
India's CBI has filed a closure report in the Air India aircraft leasing case, concluding no criminal intent was found in the long-running investigation.
US Airlines Fear EU-Wide Impact from Dublin Airport Cap Ruling
US airlines warn an EU court ruling on Dublin's passenger cap could allow planners across the bloc to unilaterally restrict airport capacity.
House Rejects ROTOR Act Mandating Aircraft Locator Systems
The U.S. House failed to pass the ROTOR Act, a bill requiring collision avoidance systems on all aircraft following last year's fatal midair collision.
US Eliminates 10% Tariff on Brazilian Aircraft Exports After Court Ruling
The US has eliminated a 10% tariff on Brazilian aircraft, a move that levels the playing field for manufacturer Embraer against its global competitors.