Luxury Train Rivalry Fuels Fury After Machu Picchu Crash

A deadly train collision along the railway leading to Peru’s renowned Machu Picchu ruins has sparked a dispute between two major players in the country’s tourism industry. Belmond Ltd, a luxury hospitality subsidiary of LVMH Moet Hennessy Louis Vuitton SE, has directly blamed Inca Rail, a train company majority-owned by the Carlyle Group Inc, for the incident that occurred on December 30th.

The crash, which took place on Peru’s most prominent railway line, resulted in one fatality and left dozens injured. According to a letter sent by Belmond executive Laurent Carrasset to the office of the prime minister, the accident was caused by an Inca Rail train operating on an unauthorized section of the tracks, leading to a head-on collision with an oncoming train.

The letter, reviewed by Bloomberg, details that Inca Rail’s train failed to adhere to established safety protocols. The railway operates on a single-track system utilizing forced stops and detours to allow trains traveling in opposite directions to safely pass. Carrasset explained that Inca Rail’s train was required to stop and yield to PeruRail, but instead continued approximately 400 meters beyond the designated stopping point, ultimately resulting in the crash.

Inca Rail has responded cautiously, stating that it is premature to draw conclusions before a thorough investigation by authorities is completed. The company affirmed its full cooperation with the ongoing investigation and expressed solidarity with those affected by the tragedy, including the family of the deceased Inca Rail driver.

The Cusco to Machu Picchu railway is a vital transportation link, carrying approximately 3 million passengers annually. Belmond dominates this route through two joint ventures, operating luxury train services under the PeruRail brand and holding the railway concession through Ferrocarril Transandino, which is used by both PeruRail and Inca Rail trains. Government statistics indicate PeruRail held a 74% market share in 2024, with Inca Rail accounting for the remaining 26%.

The incident caused significant disruption to travel plans, leaving around 2,000 passengers stranded for approximately 12 hours while awaiting evacuation. Machu Picchu, accessible only by train or multi-day hike, is Peru’s leading tourist destination, attracting numerous visitors who often opt for the convenience and luxury of train travel to reach the ancient Inca citadel famed for its stonework and Andean vistas.