Photo: screengrab from the official website of Brasil 247

By Brasil 247 - Brazilian President Luiz Inácio Lula da Silva announced new investments aimed at reviving the national railway industry and expanding urban mobility during an official visit to Araraquara, in the state of São Paulo, according to Brasil 247. The agenda included the launch of a train manufacturing project and the signing of financing agreements focused on public transportation infrastructure.

Lula visited the Brazilian unit of Chinese company CRRC, currently under implementation in the municipality, which the government describes as part of a new cycle of industrial investment in the country. The event also marked the signing of contracts with the Brazilian Development Bank (BNDES) totaling 5.6 billion reais ($1.1 billion) for public transport projects in São Paulo state.

The announced resources will fund two major mobility initiatives. Of the total amount, 3.2 billion reais correspond to the second financing phase of the North Axis Intercity Train (TIC), which will connect the city of São Paulo to Campinas. Another 2.4 billion reais will be allocated to the expansion of Metro Line 2-Green.

The metro expansion project will extend the current route between Vila Madalena and Vila Prudente to the Penha district, adding eight new stations across 8.3 kilometers. The project is expected to serve more than 320,000 passengers on a typical weekday.

The future Penha station will enable connections with Metro Line 3-Red and CPTM Line 11-Coral, expanding integration across the metropolitan rail network. The changes are expected to facilitate travel for passengers coming from cities such as Suzano and Mogi das Cruzes toward the Avenida Paulista region.

The North Axis Intercity Train will span 101 kilometers and include a stopping service between Jundiaí and Campinas, crossing eight municipalities. The project will also integrate with CPTM Line 7-Ruby, which operates between Barra Funda and Jundiaí.

Both projects are part of Brazil's New Growth Acceleration Program (PAC), which has already approved 10 billion reais in mobility financing for São Paulo state. Of this total, 6.4 billion reais are allocated to the intercity rail project and 3.6 billion reais to the acquisition of 44 trains for the São Paulo metro system.

The trains are scheduled to be manufactured by CRRC in Araraquara, with deliveries expected to begin in 2027. The factory is being installed in facilities previously occupied by an automaker that ceased operations, and hiring has already begun ahead of the completion of production lines.

(Reported by Brasil 247 on March 25, 2026)