Slow train to recovery, but Brazil's passenger railroads on the right track

Passenger volumes on Brazilian railroads are gradually recovering, but are still well below pre-pandemic levels.

"We have some positive news, such as the progress of projects in the sector and the increased reliability of operational systems. But it’s a point of concern that the passenger volume is around 20% below what we had before the pandemic," Joubert Flores, president of local passenger transport association ANPTrilhos, told BNamericas.

The urban mobility sector was severely affected by the drastic decline in passenger numbers in 2020-21. But there has not been a rapid post-pandemic recovery in the sector due to major lifestyle changes, such as many more people working from home.

In January-June, rail-based urban transport systems registered 1.25 billion trips, an increase of 4.4% compared to the same period of 2023, according to figures from ANPTrilhos.

The association is also worried about other lifestyle changes affecting demand for public transport, such as an increase in the use of private vehicles. 

"The government needs to rethink the historical incentives that have been provided to the vehicle sector, because this discourages the use of public transport, increases traffic congestion in cities and generates more pollution," said Flores. 

"Perhaps we don't even need to talk about incentives for public transport, what we really need to rethink is the persistent incentives for private transport," he added.

PROJECTS 

Despite the tough times in the rail sector, stakeholders are upbeat about a series of new projects.

The majority of them are concentrated in the country’s economic powerhouse, São Paulo state, where the local government launched the SP Nos Trilhos (São Paulo on Rails) program earlier this year.

The state has included more than 40 passenger transport projects in the program, involving estimated investments of 194bn reais (US$34.6bn) to create a rail network with over 1,000km of lines, including intercity, light and urban, and subway lines.

"It’s good news that we have new projects advancing, and it’s also very positive that [development bank] BNDES is engaged in the sector, both financing projects and developing projects in other metropolitan regions of the country," said Flores.