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The Chinese factory CRRC is being established in Araraquara, in the interior of São Paulo, and BNDES has signed contracts worth R$ 5.6 billion to finance the medium-speed train between Campinas and the state capital and the expansion of line 2 of the São Paulo Metro.
The Chinese factory CRRC Brazil is being established in Araraquara, in the interior of São Paulo, and will be responsible for producing the trains that will operate in two of the largest mobility projects in the state. President Lula visited the facility this Wednesday (25) and signed financing contracts worth R$ 5.6 billion with BNDES for the medium-speed train between Campinas and the state capital and for the expansion of line 2 of the São Paulo Metro.
The two projects are part of the new PAC and represent a milestone in cooperation between Brazil and China in the railway sector.The Chinese factory CRRC will be responsible for producing the 17 stations and the 22 train sets for the Campinas-São Paulo train, as well as 44 trains for the São Paulo Metro, with a requirement for local content in the projects financed by BNDES.
What the Chinese factory CRRC will produce in Araraquara
The Chinese factory CRRC will be responsible for two simultaneous projects in São Paulo. The first is the production of the 17 stations and the 22 train sets that will operate on the medium-speed line between Campinas and the state capital. The second is the manufacture of 44 trains intended for the expansion of line 2 of the São Paulo Metro.
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CRRC is one of the largest manufacturers of railway materials in the world and has a presence in dozens of countries. The choice of Araraquara, in the interior of São Paulo, as the site for the Chinese factory in Brazil meets the requirement of BNDES for the use of local content in the projects, which means that production must generate jobs and stimulate the national production chain.
The medium-speed train between Campinas and São Paulo
The medium-speed train between Campinas and the state capital will receive R$ 5.2 billion in financing from BNDES, being the main project linked to the Chinese factory CRRC in Brazil.
The line will feature 17 stations and 22 modern train sets, covering a route that is currently mostly done by road and takes hours in traffic.
According to the federal government, the line will be built alongside the existing freight railway in the section, utilizing federal domain land. This decision eliminates the need for mass expropriations along the route that passes through São Paulo, Jundiaí, and Campinas, reducing costs and land conflicts that often delay large infrastructure projects in the country.
The expansion of line 2 of the São Paulo Metro
The second project financed by BNDES and linked to the Chinese factory CRRC is the expansion of line 2 of the São Paulo Metro. The investment of R$ 400 million will cover the manufacture of 44 trains that will be used in the section between Vila Mariana and Vila Prudente, with the opening of eight new stations.
The expansion is expected to benefit around 320,000 passengers per day, relieving pressure on one of the most congested sections of the São Paulo metro system.
For the president of BNDES, the goal is not just to build a metro, but to build a metro that generates jobs and investment in Brazil, ensuring that the production of trains by the Chinese factory incorporates local labor and suppliers.
BNDES financing and the requirement for local content
The financing contracts from BNDES total R$ 5.6 billion and are directed exclusively to mobility projects in São Paulo linked to the Chinese factory CRRC.
The largest share, R$ 5.2 billion, goes to the medium-speed train Campinas-São Paulo. The remaining R$ 400 million finances the production of the trains for line 2 of the metro.
A central condition of the financing is the requirement for local content. This means that the Chinese factory cannot simply import ready-made components from China: it must use Brazilian parts, services, and labor in production.
The rule aims to ensure that the investment generates multiplier effects in the national economy, from the supply chain to the qualification of workers.
What the partnership between Brazil and China means for the railway sector
The establishment of the Chinese factory CRRC in Araraquara represents a concrete step in the transfer of railway technology from China to Brazil.
President Lula emphasized that the partnership is strategic for a country that needs to advance in urban mobility and that still does not dominate large-scale train manufacturing technology.
According to Lula, the cooperation provides for Brazilian workers to travel to China for training courses and for Chinese technicians to come to Brazil to support the operation of the Chinese factory. The long-term goal is for the country to become knowledgeable in the necessary technology to produce railway materials autonomously, reducing dependence on imports and strengthening the national industry.
The Chinese factory CRRC in Araraquara and the R$ 5.6 billion from BNDES mark the beginning of a new phase for mobility in São Paulo and for the Brazilian railway sector.
The medium-speed train between Campinas and the state capital and the expansion of line 2 of the metro promise to benefit millions of passengers and generate jobs with a requirement for local production.
With information from the Channel Gov.
What do you think about the establishment of the Chinese train factory in Brazil? Do you believe that the train between Campinas and São Paulo will become a reality? Leave your opinion in the comments and share with those who follow investments in infrastructure and transportation.
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