São Paulo prepares tender for US$2.3bn PPP contract for urban train lines

Brazil’s São Paulo state is planning to launch a tender in the coming weeks for a 13.3bn-real (US$2.32bn) PPP contract for three urban light rail lines operated by Companhia Paulista de Trens Metropolitanos (CPTM).

The lines are Nos. 11, 12 and 13, and run for 124km in total. At least two groups are eyeing the contract, namely local infrastructure giant CCR and a consortium formed by Brazil's Comporte and China’s CRRC, according to a person with knowledge of the matter who asked not to be identified.

The auction is likely to take place during the first quarter of 2025, the source added.

Apart from operating the current lines, the PPP includes the construction of 22.6km of new lines with 10 new stations, eight to be built by the new concessionaire and two by the state-owned company.

Studies for the PPP contract were conducted by the World Bank’s International Finance Corporation.

CCR, which operates in the highway and airport sectors, holds PPP contracts for subway lines 5, 17, 8 and 9 in São Paulo state through its ViaMobilidade unit, as well as contracts for subway services in Bahia state and a light rail service in Rio de Janeiro.

Earlier this year, a consortium comprising Comporte and CRRC won an auction for the Trem Intercidades passenger rail link in São Paulo state. This PPP contract to build and operate the 101km line involves investment of around 13.5bn reais.