Sao Paulor Governor, Tarcísio de Freitas, returned to the B3 (Brazil Stock Exchange) headquarters on Thursday (29) to finalize the international auction for the concession of the North Axis Intercity Train, connecting the city of São Paulo to Campinas.
The C2 Mobilidade Sobre Trilhos JV was the only qualified bidder and winner. Through a concession/PPP agreement, the Consortium will operate, maintain, upgrade, and collect the passenger rail transport revenue for the new rail corridor between São Paulo and Campinas for 30 years. The estimated investment is R$ 14.2 billion (c. USD 4.5 Billion).
Sao Paulo-Campinas Intercity Train - PPP Auction Details
In Brazil, Public-Private Partnerships (PPPs) are procured through a competitive auction process. The government begins by outlining the project and its specifications.
Following this, private entities interested in the project submit bids in response to a public Expression of Interest (EOI). Qualified bidders then advance to the auction phase. In a concession PPP, the successful bidder offers the lowest amount for the right to construct and operate the asset for a predetermined period.
The Sao Paulo-Campinas Intercity Train PPP auction attracted two major groups in a single consortium formed by the Brazilian Comporte Participações S.A. and the Chinese CRRC Hong Kong.
In addition to the Intercity Train, connecting the capital to the largest metropolis in the interior of São Paulo, the project includes the implementation of the Intermetropolitan Train (TIM) between Campinas and Jundiaí, and the concession of Line 7-Rubi, currently operated by the Companhia Paulista de Trens Metropolitanos (CPTM).
The winning proposal presented a discount of 0.01% on the state’s payment of R$ 8.06 billion for public services as of the 2024 base date. The São Paulo Government confirmed its co-investment in the project will be maintained at the initially planned amount of R$ 8.98 billion.
Sao Paulo-Campinas Intercity Train - PPP Contract Details
The North Axis Intercity Train, linking Sao Paulo to Campinas, will operate on a 101 km stretch, improving and expanding mobility between the metropolitan areas of São Paulo, Jundiaí, and Campinas.
It will have the capacity to transport up to 860 passengers per trip and will be the fastest in Brazil, reaching up to 140 km/h. With the operation of seven new trains, the route will cover 44 km with an estimated travel time of 33 minutes.
Under a Public-Private Partnership, the new concessionaire (C2 Mobilidade Sobre Trilhos Consortium) will also operate Line 7-Rubi, which recorded about 99 million passengers in 2023. With 57 km and 17 stations, the line connects Jundiaí to Palmeiras-Barra Funda station in the capital. The São Paulo Government estimates that the concession will serve approximately 400,000 people daily.
The North Axis Intercity Train project will benefit around 15 million people in 11 municipalities and generate more than 10,500 jobs, including direct, indirect, and induced employment.
Suggested Reading: Public Private Partnerships (PPPs): What are they? How they Work?
Sao Paulo-Campinas Intercity Train - Sao Paulo Governor Comments
“This project is symbolic because it is the first, innovative, and avant-garde. It is the first medium-speed train in Brazil. It comes with three services: Line 7-Rubi, the Intermetropolitan Train in the Campinas and Jundiaí region, and the express train from Campinas to São Paulo. Imagine how people’s lives will change. It is a very relevant project in terms of mobility and opens a cycle of new investments in railway infrastructure and passenger transport,” said Tarcísio de Freitas, Sao Paulo Governor.
Related Project and News – Rail Projects
