It was not until in 1892, when José María Reyna Barrios assumed power, that the railroad project was started once again.
On 19 July 1895, Reina Barrios issued the executive action #513, which established that, between the Escondido and Estrecho rivers, a city was to be founded, and that it was going to be called Puerto Barrios.
The ceremonial act of foundation took place on 5 December 1892.
Furthermore, a part of the Northern Railroad project, the executive action #524 declared Puerto Barrios as "Major port of the Republic" and ordered to transfer over there the customs that used to be in Livingston.

Given that in those days most visitors arriving from Europe and North America arrived at the port on the Caribbean Sea shore, Reina Barrios pushed for the Northern Railroad to be finished on time.
Not only was the railroad vital for the Expo success, it was key to transport merchandise and passengers between the Caribbean Sea and the new Port of Iztapa on the Pacific shore of the country.
Reina Barrios had high hopes on the railroad to improve the progress and development of the country given that the United States and Spain were still at war over Cuba, and it was evident that a dependable interoceanic communication line was crucial for the North American country.
Completing a transoceanic railway was a main objective of Reina Barrios government, with a goal to attract international investors at a time when the Panama Canal was not built yet.
However, a sharp decline in the price of coffee and silver, along with the high technical difficulties of the railroad construction close to Guatemala City −mainly due to the steep cliffs and mountain sides around the city− resulted in the collapse of Guatemala's economy, a failure of the Exposición Centroamericana and the eventual murder of president Reina Barrios, on 8 February 1898.

After Reina Barrios's death, civilian lawyer Manuel Estrada Cabrera was designated as president and inherited an enormous −for the times− external debt with British banks, which forced him to search for an ally in the United States.
In 1900, Estrada Cabrera authorized his Secretary of Economy, Rafael Spínola, to set up a contract with an American company, the Central American Improvement Co. Inc., to finish the Northern Railroad and fix those stretches that were in disrepair on the rest of the line.
 To cover for the expenses, the Guatemalan government gave a concession to the American company to use the railroad along with all of its facilities without any cost; this included the port and dock in Puerto Barrios, for which the Guatemalan people and government had to pay fees if they wanted to use them.
It was not until in 1892, when José María Reyna Barrios assumed power, that the railroad project was started once again. On 19 July 1895, Reina Barrios issued the executive action #513, which established that, between the Escondido and Estrecho rivers, a city was to be founded, and that it was going to be called Puerto Barrios. The ceremonial act of foundation took place on 5 December 1892. Furthermore, a part of the Northern Railroad project, the executive action #524 declared Puerto Barrios as "Major port of the Republic" and ordered to transfer over there the customs that used to be in Livingston.
Given that in those days most visitors arriving from Europe and North America arrived at the port on the Caribbean Sea shore, Reina Barrios pushed for the Northern Railroad to be finished on time. Not only was the railroad vital for the Expo success, it was key to transport merchandise and passengers between the Caribbean Sea and the new Port of Iztapa on the Pacific shore of the country. Reina Barrios had high hopes on the railroad to improve the progress and development of the country given that the United States and Spain were still at war over Cuba, and it was evident that a dependable interoceanic communication line was crucial for the North American country. Completing a transoceanic railway was a main objective of Reina Barrios government, with a goal to attract international investors at a time when the Panama Canal was not built yet. However, a sharp decline in the price of coffee and silver, along with the high technical difficulties of the railroad construction close to Guatemala City −mainly due to the steep cliffs and mountain sides around the city− resulted in the collapse of Guatemala's economy, a failure of the Exposición Centroamericana and the eventual murder of president Reina Barrios, on 8 February 1898.
After Reina Barrios's death, civilian lawyer Manuel Estrada Cabrera was designated as president and inherited an enormous −for the times− external debt with British banks, which forced him to search for an ally in the United States. In 1900, Estrada Cabrera authorized his Secretary of Economy, Rafael Spínola, to set up a contract with an American company, the Central American Improvement Co. Inc., to finish the Northern Railroad and fix those stretches that were in disrepair on the rest of the line.  To cover for the expenses, the Guatemalan government gave a concession to the American company to use the railroad along with all of its facilities without any cost; this included the port and dock in Puerto Barrios, for which the Guatemalan people and government had to pay fees if they wanted to use them.
Northern Railroad of Guatemala