São Paulo state authorized the planned PPP tender to build and operate the 101km, 10.2bn-real (US$1.9bn) Trem Intercidades passenger rail link.
“Intecidades is important due to the size of the investment and it will also be the country’s first major project for passenger [rail] transportation between cities, which in the medium term is likely to encourage other [state] governments to follow suit,” Roberta Marchesi, executive director of Brazilian passenger transport association ANPTrilhos, told BNamericas.
The state government said the process will be open to local and international firms, and the next step will be to publish the tender notice with the key dates.
“According to the information we have, the notice is likely be published between the end of March and the beginning of April, with the auction likely to be held on November 28,” Vicente Abate, president of the country’s rail equipment manufacturer association Abifer, told BNamericas. “The Brazilian rail industry is ready to supply the materials and equipment.”
Of the project’s capex, 1.8bn reais will be invested in rolling stock, 2.6bn will go to upgrading rail line No. 7 and 5.8bn will be invested in infrastructure, including the new line.
The auction was initially planned for last year, but the October 2022 general elections delayed an agreement on usage rights. In November, the state signed an accord with the federal government to advance with the project. The agreement guarantees that the concessionaire will also assume the rights and obligations of state rail company CPTM’s section of line No. 7.