Brazil's 10 Billion-Reais Rail Boom to Transform São Paulo Transport

Brazilian President Luiz Inácio Lula da Silva has announced major investments in railway infrastructure and urban mobility during a visit to Araraquara. The funding, totalling 10 billion reais, will support two key transport projects in São Paulo state. Both initiatives form part of the country's New Growth Acceleration Program (PAC). The largest share of the funding—3.2 billion reais—will go toward the second phase of the North Axis Intercity Train (TIC). This 101-kilometre line will connect São Paulo to Campinas, passing through eight municipalities. Once operational, it will integrate with CPTM Line 7-Ruby, improving regional rail links.

Another 2.4 billion reais has been allocated to extend Metro Line 2-Green to the Penha district. The expansion includes eight new stations and is expected to serve over 320,000 passengers daily. The extended line will also connect with Metro Line 3-Red and CPTM Line 11-Coral, boosting transport integration across the metropolitan network.

During the visit, Lula launched a train manufacturing project at the Brazilian unit of Chinese company CRRC. The Araraquara factory, set up in a former automaker's facilities, will produce trains for São Paulo's metro system. Deliveries are scheduled to begin in 2027. Hiring has already started, with 49 direct jobs created so far. The company now expects to quadruple its workforce to around 196 by the end of the year, exceeding an earlier forecast of 100 new jobs by August 2025.

Financing agreements worth 5.6 billion reais (around $1.1 billion) were signed with the Brazilian Development Bank (BNDES) to support these public transport projects in São Paulo state. The investments will expand rail capacity and improve connectivity between São Paulo and surrounding regions. The projects also aim to create jobs, with CRRC's factory alone set to employ nearly 200 people by the end of 2024. Trains for the metro system will be manufactured locally, with operations starting in 2027.