Brazil invests $1.1 billion to expand São Paulo's metro and intercity rail

Brazilian President Luiz Inácio Lula da Silva has unveiled major investments in the country's railway and urban transport sectors. The funding, totalling 5.6 billion reais (around $1.1 billion), will support two key projects in São Paulo state: an expansion of Metro Line 2-Green and the construction of a new intercity train route. Both initiatives form part of Brazil's New Growth Acceleration Program (PAC).

During an official visit to Araraquara, in São Paulo state, the president announced the financing agreements with the Brazilian Development Bank (BNDES). The largest share, 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, with a stopping service between Jundiaí and Campinas.

Another 2.4 billion reais will fund the extension of Metro Line 2-Green to the Penha district. The expansion adds 8.3 kilometres of track and eight new stations, increasing capacity for over 320,000 passengers on a typical weekday. The trains for both projects will be manufactured at CRRC's Brazilian unit in Araraquara. Production is set to begin soon, with deliveries expected from 2027. The factory currently employs 49 workers but plans to expand to around 196 by the end of the year as new production lines are installed. Earlier forecasts had predicted 100 new jobs by August 2025. These projects are part of a broader 10 billion reais mobility financing package already approved for São Paulo under the PAC. The aim is to improve public transport infrastructure and boost regional connectivity.

The new funding will accelerate transport upgrades in São Paulo, with the metro extension and intercity rail line set to enhance daily travel for hundreds of thousands. CRRC's expanded production in Araraquara will also create jobs, supporting local employment as the projects move forward.