Introduction
On February 29, local time,The state of São Paulo** in Brazil announced that it has won the bid for the large-scale public-private partnership intercity railway TIC project (Campinas Intercity Train) by the CRRC consortium, the project is expected to invest 13.5 billion Brazilian reals, about 2.7 billion US dollars.
The CRRC consortium is the sole bidder for the São Paulo Intercity Rail tender, consisting of CRRC Hong Kong and the Brazilian local company Comporte Participa ES (Belo Horizonte metro operator)., the winning bid ** is lower than the owner's target limit price of 001%。The CRRC consortium will be responsible for the design, construction, maintenance and renovation of the project, as well as its operation over the next 30 years.
The São Paulo Intercity Railway, which connects the cities of São Paulo and Campinas, will be the fastest passenger railway service in Brazil with a total length of 101 kilometers and a maximum operating speed of 140 kilometers. The whole project consists of three parts: the concession of the São Paulo Intercity CPTM Line 7 - Ruby Line, the intercity passenger line from Juendiaí to Campinas and the express passenger line from São Paulo to Campinas.
The project, which is part of the Federal Accelerated Growth Program (PAC), will be implemented through a public-private partnership, with the state paying part of the costs (about R$8 billion) and businesses covering the rest. The train is expected to be completed in 2031, transporting approximately 60,000 passengers per dayIt is expected to purchase 17 trains.
Project Background
In October 2023, the Governor of the State of São Paulo, Brazil, announced the new progress of the tender for the PPP project of the Campinas intercity train, including a new rail connection between the capital and Campinas; implementation of the intercity train project between Campinas and Juendiaí; Concession for Ruby Line 7 of the Intercity Railways of São Paulo (CPTM), Brazil. The total investment amounted to R$13.5 billion (27.5 billion$500 million).
Participants are required to meet all the terms and conditions of the solicitation documents, which will be judged by first considering the maximum reduction in the maximum amount paid; If more than one bidder offers the same percentage of reduction, the winning bidder will be determined by the second criterion, which is the degree of cost reduction for the overall project.
Brazil will provide R$8 billion in financial support for the TIC project, including R$6.4 billion previously signed between São Paulo** and the National Development Bank of Brazil (BNDES). The state** aims to find private partners through tenders to reduce the financial burden on projects and improve operational efficiency. One of the new features of this tender is that the state will guarantee 90% of the revenue of express services. If the revenue exceeds 10% of the projected total, the profit will be divided equally between the state and private operators. These improvements will guarantee a minimum income for TIC's operations and make the model more competitive and provide users with fair fares.