Interest in light rail vehicle projects grows in Brazil with public-sector support
BnamericasPublished: Tuesday, April 14, 2026
Rail line Investment Public-private partnership (PPP) Industrial Equipment Supplier Freight railway
Brazil is experiencing a wave of interest in Light Rail Vehicle (LRV) projects, with growing participation from the public sector in initiatives in various cities and states.
In an interview with BNamericas, Vicente Abate, president of the Brazilian Railway Industry Association (Abifer), details the current scenario for LRVs, as well as for freight railways in the country, including projects under development, industrial capacity and prospects for railway auctions in 2026.
BNamericas: How do you assess the current outlook for LRV projects in Brazil?
Abate: I see a positive wave of interest in LRVs in Brazil.
There are recent initiatives, such as the feasibility studies that the state-owned company Infra S.A. is conducting on the project in the city of Bauru, which reinforces the involvement of the federal government and increases the likelihood of new projects moving forward.
Most LRT projects in the country make use of idle or abandoned railway sections, which is a very specific characteristic that requires proper preparation of the areas and upgrading of the existing infrastructure.
BNamericas: What is Infra S.A.’s role in structuring these projects?
Slaughter: Infra S.A. plays a central role, with qualified technical teams and experience inherited from Valec. The company’s work is essential to properly structure projects and attract investments.
BNamericas: What are the main LRV projects under development besides this one in the city of Bauru?
Abate: The São Paulo city government currently has four projects under study. Two of them are lines in the city’s historic center, which can be interconnected and also extended to the Campos Elíseos neighborhood.
In addition, there are other important projects, such as line three of the Tietê–South LRT and line four, connecting the neighborhoods of Barra Funda and Mandaqui, with around 8km, which has already been extensively studied.
This latest project arose from discussions within the scope of the Metrô and is relatively advanced, with station definitions and preliminary studies.
BNamericas: Do these projects have sufficient institutional support to move forward?
Abatement: Yes. The government of the state of São Paulo, under Governor Tarcísio de Freitas, has supported the initiatives of the city hall, led by Mayor Ricardo Nunes. There has been progress in structuring, including studies, route definition, and the search for financing.
However, as with any public project, there are regulatory and institutional obstacles that can extend the timelines for execution.
BNamericas: Which other LRT projects stand out in Brazil?
Write-off: One of the main ones is the Salvador LRT, with approximately 44km in length, a robust project considered feasible.
Another example is the Campina Grande LRV, with around 15km, which has already been studied previously and is expected to start operating in 2026, if it progresses as expected.
BNamericas: Does Brazil have the industrial capacity to meet these LRT projects?
Abate: Yes, the Brazilian railway industry is prepared. We have manufacturers established in the country, such as Alstom, CAF, and Hyundai Rotem, among others, with international experience and advanced technologies.
In addition, new technological fronts are being implemented for LRVs, such as hydrogen traction, hybrid locomotives, and ground-level power supply systems, which are important for areas with many historic buildings.
The use of green hydrogen is a relevant trend, especially with initiatives in São Paulo to develop this chain.
BNamericas: How do you assess the outlook for freight railways in Brazil?
Abatement: There are several projects underway or under study, involving operators such as Vale, Rumo, MRS and others. There is also room for the development of short lines in idle sections.
In Mato Grosso, for example, there are significant projects related to grain outflow, including Rumo’s expansion to Lucas do Rio Verde, connections with the Norte-Sul Railway and projects such as FICO and FIOL.
The Ferrogrão remains a strategic project, although it faces environmental and legal challenges.
BNamericas: Is there integration between modes in these projects?
Abate: Yes, and this is essential. There are advances in railway integration with highways and waterways, allowing for more efficient logistical connections, including routes to the north of the country, such as Santarém.
BNamericas: The federal government has an ambitious agenda of freight railway auctions this year. Do you think all the railway auctions planned for this year should move forward?
Reduction: The projects are complex and require public hearings and detailed structuring. But I believe that a good part of them can move forward to auction in the second half of the year.
The political context also favors this movement, since the government is interested in showing results in infrastructure.
(The original version of this content was written in Portuguese)
