Bullet train that will connect Rio to SP in record time has a date to start operating, but ticket prices are scary; see the price

A high-speed bullet train is coming to fruition, but the ticket price is scary! With an investment of R$60 billion and promises to transform the infrastructure, the project already has plans to start operations.

Travel the 417 kilometers between Rio de Janeiro and São Paulo in only 1 hour and 45 minutes.

This is the estimated travel time for the high speed train which could reach up to 320 km/h.

The project, which has been discussed in Brazil for decades, is back on the table under the leadership of TAV Brazil, a company that received government authorization for the construction and operation of the railway system for 99 years.

The operation is expected to begin in 2032, with a total expected investment of $ 60 billion.

However, what has attracted the most attention is the price of the ticket: R$ 500 per leg, totalizing R$ 1.000 round trip between the capitals.

Below, understand the details of this ambitious project and the impact it can have on the Brazilian economy and transportation.

The project structure

The bullet train will have four Seasons along the route.

In addition to the terminals in the Rio de Janeiro and São Paulo, stops are planned in Volta Redonda (RJ) e Sao Jose dos Campos (SP).

The exact locations still depend on approval from city halls, but the idea is that the stations in the capitals will be built in central regions or will take advantage of existing structures to boost the revitalization of these locations.

With 38 million population in both states and 30% of national GDP concentrated in the region, the train can leverage economic growth, facilitating the movement of workers, businesspeople and tourists.

According to projections from TAV Brazil, the project has the potential to add R$ 168 billion to GDP, create about 130 thousand direct and indirect jobs and collect R$46 billion in taxes by 2055.

Foreign investors and financial challenges

To make the project viable, the TAV Brazil is in negotiations with Chinese, Spanish companies and Arab funds.

The goal is to capture the $ 60 billion necessary for the construction of lines, acquisition of trains and development of operating systems.

Although the names of the companies involved have not been revealed for confidentiality reasons, the CEO of TAV Brasil, Bernardo Figueiredo, in an interview with Exame portal, highlighted that there are three possibilities: a single investment by one of the foreign groups or a joint financing model.

The Chinese, for example, excel in railway technology, having built 40 thousand kilometers of tracks for high-speed trains since the opening of the first line in the country, in 2008.

The Spanish have extensive experience in the sector, with important projects in Europe and Latin America.

According to Figueiredo, regardless of the chosen investors, there is a consensus on the need for government support to ensure the viability of the project.

The company has already formalized a request to Ministry of Transport, requesting that the bullet train be included in the Growth Acceleration Program (PAC).

This would allow greater agility in processes environmental licensing, land expropriation and financing.

A model based on real estate exploration

In addition to ticket sales, the project provides for a extra source of income with real estate exploration around the stations.

Current legislation allows the expropriation of nearby areas for the construction of shopping malls, business centers and hotels, creating new commercial hubs around the railway terminals.

This model has already been applied in other countries, such as South Korea.

Em 2003, the station between Cheonan and Asan, 100 km from Seoul, was inaugurated with a real estate development plan.

Today, the region has become a city with 600 thousand inhabitants, driven by the economic growth generated by high-speed rail.

The expectation of TAV Brazil is that this type of exploration generates additional revenue of $ 27,3 billion, helping to make the project financially viable.

A long history of failed attempts

The dream of a bullet train in Brazil It is not recent.

In previous governments, especially in the management Dilma Rousseff, attempts were made to make the project viable, but without success.

The first proposal involved a concession model in which the government would finance the project via BNDES, but there was no interest on the part of investors.

Then the idea was that the State would build the infrastructure and only hire a company to operate the train, but the project did not move forward.

It was only in 2021, with the approval of the railway legal framework, which opened up the possibility of a viable bullet train 100% by the private sector, without the need for bidding.

With this, the TAV Brazil got in 2023 the official government authorization to proceed with the project.

When will the bullet train become a reality?

The company's schedule foresees that the technical, environmental and economic studies be completed by the end of 2026.

If all goes as planned, the construction of lines and stations will begin in 2027.

The forecast is that the first trains come into operation in 2032, allowing Brazilians to finally have access to high-speed rail transport between the country's two largest cities.

Given the high cost of tickets, will the bullet train be able to attract passengers and become a viable transport alternative?