Brazil injects $1.1B into São Paulo's rail and metro expansion projects
Brazil has announced major investments in rail transport and urban mobility for São Paulo state. President Luiz Inácio Lula da Silva revealed the plans during an official visit to Araraquara. The projects include a new train factory, metro expansion, and an intercity rail line—all backed by billions in funding.
The Brazilian government signed financing agreements worth 5.6 billion reais (around $1.1 billion) with the Brazilian Development Bank (BNDES). These funds will support public transport projects in São Paulo under the New Growth Acceleration Program (PAC). Over 10 billion reais in mobility investments have already been approved for the state.
A key part of the plan is the North Axis Intercity Train (TIC), which will connect São Paulo to Campinas. The second phase of this project received 3.2 billion reais in funding. The 101-kilometre route will include a stopping service between Jundiaí and Campinas. Another major project is the expansion of Metro Line 2-Green in São Paulo. With 2.4 billion reais allocated, the line will extend to the Penha district, adding eight new stations. Once completed, it will serve over 320,000 passengers on an average weekday. The trains for these projects will be built at CRRC's factory in Araraquara. The Chinese-owned plant currently employs 49 people but is expected to quadruple its workforce by the end of 2026. Earlier projections from August 2025 had estimated around 100 new jobs. Deliveries of the new trains are set to begin in 2027.
The investments aim to improve transport links across São Paulo state. The North Axis Intercity Train will boost regional connectivity, while the expanded metro line will ease congestion in the capital. Meanwhile, the CRRC factory in Araraquara will create hundreds of jobs as production ramps up.
