Brazil's rail renaissance: São Paulo leading the way

Some of Brazil’s most economically important states are trying to push forward with rail projects, generating great optimism among businesspeople in the sector. 

The most significant efforts so far have been made by São Paulo state, which has just announced some 40 proposals that would add 1,000km of rail lines to its existing passenger network and are estimated to involve total investments of 194bn reais (US$37bn).

The initiatives announced by the state include concession contracts and public-private partnerships (PPPs), some of which are in advanced stages, while others remain to be prepared.

"São Paulo state has grown and its largest cities were created alongside the railroads. There is a great effort by the state government to revitalize rail transport, which is essential. Highways are increasingly congested and we need a sustainable solution that is aligned with what the rest of the world does," governor Tarcísio de Freitas said in a statement.

"If we are going to start reviving rail passenger transport in Brazil, this has to happen in São Paulo," he added.

Freitas’ term as governor comes to an end in December 2026 and some of the initiatives announced by him will likely only move forward after that.

"These are projects with different concepts, all of them important and integrated. Not necessarily all of them will get tenders under the current administration. This shows the selflessness of the governor and his team, as they are not only concerned with carrying out projects but also with building a solid portfolio that will contribute to improving the mobility of the population," Vicente Abate, president of the association of railroad equipment manufacturers (Abifer), told BNamericas. 

Among the projects in the state, some have been auctioned, while others have been qualified by the government to be offered to the private sector through concessions and PPPs. 

The most advanced project is the intercity passenger train, known as TIC Eixo Norte (north axis), which will connect the São Paulo metropolitan region with the cities of Jundiaí and Campinas.

In February, a consortium formed by Brazilian firm Comporte and China’s CRRC won a bidding process for the PPP contract to build and operate the 101km line. Construction is expected to begin in 2026 and is scheduled to be completed in 2031. 

It also includes the construction of a 44km inter-metropolitan train line, to be finished in 2029, serving five stations: Jundiaí, Louveira, Vinhedo, Valinhos and Campinas.

Other projects in advanced stages of development include the Eixo Oeste (west axis) intercity train, linking São Paulo and Sorocaba; Eixo Leste (east axis), connecting São Paulo to São José dos Campos; and the Eixo Sul (south axis) train, between São Paulo and Santos. 

The government also aims to offer contracts to expand urban rail lines No. 10 and No. 14, known as ABC Leste, and lines No. 11, No. 12, and No. 13, known as Alto Tietê. In addition, there are plans for new subway lines No. 19 and No. 20, and light rail projects in Campinas and Sorocaba.

"The intercity train from São Paulo to Sorocaba is advanced and a tender could possibly be launched in 2025," said Abate.

Other projects in the initial stages of study by the state include extensions of subway lines No. 2, No. 4, No. 5, No. 6 and No. 9, along with planned concession contracts for lines No. 10, No. 11, No. 12, No. 13 and No. 14. There are also plans to extend subway line No. 15 and carry out construction of line No. 17.

Paraná state 

Recently, Brazil's transport ministry and Paraná state signed technical cooperation agreements to develop solutions to advance with two freight rail initiatives, Nova Ferroeste and Malha Sul. 

The objective of the partnership is to establish guidelines for projects, optimizing implementation and ensuring effectiveness.

"This agreement will be crucial, as it will bring together those who will eventually be impacted by the projects. We will have talks about the search for solutions for the places where the railroads pass, cargo demands and socioeconomic issues," national rail transport secretary Leonardo Ribeiro said in a statement.

The Nova Ferroeste project, included in the federal Novo PAC investment program, outlines 1,567km of track, crossing 66 municipalities in Paraná, Santa Catarina and Mato Grosso do Sul states.

Meanwhile, Malha Sul covers all southern states and São Paulo state, and logistics company Rumo is currently negotiating with the federal government over the early renewal of a concession contract that would allow the firm to invest in expanding and improving the network.

Minas Gerais

Minas Gerais state recently announced the acquisition of 24 subway trains from CRRC. The rolling stock is for state capital Belo Horizonte’s subway, which is operated by Metrô BH.

Metrô BH is controlled by Brazilian bus operator Comporte Participações, which in late 2022 won a bidding process for the privatization of Minas Gerais state rail firm CBTU. As part of the privatization, the firm assumed the concession contract to operate the subway system.

The Chinese firm has started manufacturing the trains and the first is expected to begin operating in the first half of 2026. The state’s subway fleet currently comprises 35 trains.

As the new owner of CBTU, Comporte will be responsible for extending line No. 1 and building line No. 2. With a length of 28.1km and 19 stations, line No. 1 serves the municipalities of Belo Horizonte and Contagem. Line No. 2 will add 10.5km and seven stations to the system.

Construction of line No. 2 is expected to kick off in September after Comporte secures environmental approval for the project.

Federal government

The federal government is also looking to advance its pipeline of rail projects. Technicians from the transport ministry are working to prepare a portfolio of projects, which will include public and private sector investments, through concessions and PPPs.

In July, the government is planning to announce a national rail plan that will include a package of projects costing around 200bn reais, transport ministry executive secretary George Santoro said in an interview on CNN.