São Paulo state unveils plans for rail projects worth nearly US$5bn

São Paulo state detailed plans for four new passenger rail projects involving at least 25.1bn reais (US$4.87bn).

The state added the projects to the portfolio of its partnerships and concessions office, which will now draft PPP and concession contracts.

Two of the planned projects are intercity trains and two are light rail projects.

"The government’s initiative is very important and will keep São Paulo state in the lead regarding the volume of projects in the area of passenger transportation in the country. However, I believe that none of these projects announced now will have their contracts auctioned before the end of the governor’s term, as drafting requires a significant amount of time," an executive from the passenger transport sector told BNamericas, requesting anonymity.

The executive added that required investment may be higher when the contracts are offered because of inflation.

Politics could be another obstacle for the advance of the projects, as governor Tarcísio de Freitas' term ends in late 2026. However, instead of opting for re-election, he may run for president.

Polls suggest Freitas, who was infrastructure minister during the Jair Bolsonaro administration (2019-22), would be a competitive candidate. National elections will take place in October 2026, with left-wing President Luiz Inácio Lula da Silva signaling that he is interested in running again.

No potential contender has yet emerged on the right, and Bolsonaro has been barred from running because he violated electoral rules.

THE PROJECTS 

The largest planned project in terms of financial volume is the TIC Eixo Sul, with estimated investment of 15bn reais. The line would connect São Paulo metropolitan region and coastal localities in Santos region.

The 130km TIC Eixo Leste would demand 6bn reais, connecting São Paulo metropolitan region and São José dos Campos city.

Meanwhile, one light rail project is planned for Campinas city, with a first stretch, of 22km, connecting the municipalities of Campinas, Hortolândia and Sumaré, while a second stretch, 22.4km, is planned to link Campinas city center and Viracopos airport. Both stretches will require a combined 2.6bn reais.

Another light rail is planned for Sorocaba city. It will extend 25km and demand 1.5bn reais.

OTHER PROJECTS 

In February, a consortium formed by Brazilian firm Comporte and China’s CRRC won a bidding process for the state’s first intercity train PPP contract, the TIC Eixo Norte, connecting São Paulo metropolitan region and the cities of Jundiaí and Campinas.

The contract to build and operate the 101km line involves investments estimated at 14.2bn reais. Construction is expected 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.

In addition, the government is developing the 8.5bn-real TIC Eixo Oeste rail, which will connect São Paulo and Sorocaba city. 

The state is also planning to offer PPPs to build and operate 33 schools in 29 localities, involving investments of 2.1bn reais over 25 years. Contracts will be offered in two lots.