A subsidiary of the global luxury giant LVMH has pointed a finger at a train operator backed by private equity firm Carlyle Group for a fatal collision on the crucial railway line to Peru's world-famous Machu Picchu ruins. The incident, which casts a shadow over a vital tourism artery, resulted in one fatality and injured dozens.
The Crash and the Accusation
The head-on collision occurred in the early afternoon of December 30 on the single-track railway connecting Cusco to Machu Picchu. In a formal letter to the Peruvian Prime Minister's office, Belmond Ltd, the luxury hospitality arm of LVMH, laid the blame squarely on Inca Rail, which is majority-owned by Carlyle.
The letter, signed by Belmond executive Laurent Carrasset and reviewed by Bloomberg, stated that the Inca Rail train failed to stop at its assigned waiting point. It allegedly proceeded through an unauthorized section of track for about 400 meters before crashing into an oncoming train.
Carrasset explained that the railway's management relies on a system of forced stops and occasional detours to allow trains traveling in opposite directions to safely alternate. At the time of the incident, the Inca Rail train was supposed to halt and wait for a PeruRail train to enter a detour. Instead, it bypassed the limit of its authorized track area, leading to the direct collision.
Operator Response and Market Dominance
In response to the allegations, Inca Rail issued a statement cautioning against premature conclusions before official investigations are complete. The company said such actions "may generate biased interpretations of facts that are still being verified." It affirmed its full cooperation with authorities and expressed solidarity with the injured and the family of the deceased, who was identified as the driver of the Inca Rail train.
The railway is a lifeline for Peruvian tourism, transporting roughly 3 million passengers annually to the UNESCO World Heritage site, which is inaccessible by road. Belmond is the dominant force on this route through two joint ventures. It operates luxury trains via PeruRail and holds the railway concession through Ferrocarril Transandino, which is used by both its own services and Inca Rail's trains.
Government statistics for 2024 show PeruRail commanded a 74% market share on the Machu Picchu route, with Inca Rail holding the remaining 26%.
Immediate Fallout and Broader Impact
The consequences of the crash extended beyond the immediate casualties. According to Carrasset's letter, approximately 2,000 passengers were stranded following the accident. These tourists faced an agonizing wait of about 12 hours before they could be safely evacuated from the remote location.
This incident strikes at the heart of Peru's tourism industry. Machu Picchu, renowned for its ancient stonework and breathtaking Andean vistas, is the country's top draw for international visitors. Many of these tourists experience the site via the luxury train services that operate on this very line. The safety and reliability of this railway are therefore paramount to the nation's economic and tourism health.
