CRRC Brazil Factory Launches, Significantly Shortening Brazil's Rail Vehicle Manufacturing Cycle

Jingjing Reporter Lu Bingyang, Beijing Report

The factory is expected to be put into operation in the second half of 2026. / Photo from the Chinese Embassy in Brazil

On March 25, local time in Brazil, Brazilian President Lula inspected the construction progress of the China Railway Rolling Stock Corporation Limited (hereinafter “CRRC,” 601766.SH) plant in Brazil.

According to people close to CRRC, the Brazilian officials attending this inspection included Brazil’s Vice President and Minister of Industry, Trade and Commerce Alckmin, the Chief Minister of the President’s Office Costa, the City Minister Jalde, and the President of the Brazilian National Bank for Economic and Social Development Mercadante, among other federal-level dignitaries, as well as local officials such as Alarapacara Mayor Lapeña. The Chinese side included Ma Lijun, Chairman of CRRC Qingdao Sifang Locomotive & Rolling Stock Co., Ltd. (hereinafter “CRRC Sifang”), and relevant personnel responsible for the company’s international business.

The above-mentioned people told reporters that the CRRC Brazil plant is named CRRC BRASIL EQUIPAMENTOS FERROVIARIOS LTDA. Currently, the project is in the construction stage. After completion, it will become a rail transit equipment manufacturing base for Brazil and even South America. The factory is expected to come into operation in the second half of 2026. “After CRRC BRASIL EQUIPAMENTOS FERROVIARIOS LTDA. begins operations, it will significantly reduce the manufacturing cycle of locally made rail vehicles in Brazil. It will also help improve Brazil’s rail transit industrial chain, while lowering logistics costs and creating employment opportunities for local communities.”

Meanwhile, according to a report from China News Network on March 26, the Brazilian National Bank for Economic and Social Development announced that it would invest 5.6 billion reais in an urban transport project in the state of São Paulo. Of this amount, 3.2 billion reais will be used for the second-phase financing of the intercity rail North Axis Line project; and 2.4 billion reais will be used for the expansion project of Metro Line 2 in the city of São Paulo.

A person in charge of CRRC Sifang’s overseas projects told reporters that in 2022, CRRC signed an export contract for 62 line-haul rail passenger carriages with Brazilian mining company Vale S.A. (hereinafter “Vale”). This is also the first time Chinese companies have exported line-haul rail passenger carriages to Brazil.

In addition to Vale’s passenger carriages, over the past 10-plus years, CRRC has successively supplied 668 rail vehicles to cities in Brazil such as Rio de Janeiro and São Paulo. Products including Rio de Janeiro Metro Line 1, Line 4, and intercity EMU trains have provided the city with more than 60% of its capacity. Among them, the trains for São Paulo’s Line 13 officially entered operation in 2020, providing transportation services for South America’s first airport rail line.

In recent years, CRRC has been deepening its presence in Brazil. In addition to the CRRC Brazil company currently under construction, there is also the Brazil CRRC Changke track equipment sales and service company (hereinafter “Brazil CRRC Changke”), established earlier.

Regarding the support plan of rail transit products for building smart cities, Xu Jianwen, manager of Brazil CRRC Changke, told reporters that the planning and construction of smart cities are based on future transportation plans for cities such as Rio de Janeiro and Brasília. Products such as Brazil CRRC Changke’s supercapacitor tram trains, 100% low-floor tram trains, the new-generation GOA4 driverless metro, and hydrogen-energy regional rail trains will play an important role in formulating urban transportation solutions.

Regarding Brazil’s current rail situation and future plans, Joubert, chairman of the Brazilian Rail Industry Joint Association, told reporters that Brazil has an urgent need for railway construction and expansion, and the market potential is huge. The technological capabilities, reliable quality, and cost-effectiveness of Chinese enterprises can provide tremendous help for the development of Brazil’s railways.

Brazil has a land area of 8.5 million square kilometers, making it the world’s fifth-largest country by land area, with a population of 214 million people, of which 80% live in cities. Brazil has 27 cities with populations of more than 1 million, but Brazil currently has only 1,105 kilometers of urban rail, and the rail transit equipment market has considerable potential.

Currently, Brazil’s transportation is mainly dependent on highways and aviation, while the development of rail infrastructure has been relatively slow. It urgently needs further investment, construction, and upgrades. Vitalle, head of Brazil’s National Department of Land Transport, pointed out that in recent years, Brazil has made significant progress in railways, and it is very important to expand railways to make Brazil’s transportation matrix more balanced. Brazil will further expand the development of its railway network.

(Editor: Zhu Huishan; Review: Zhu Ziyun; Proofread: Yan Yuxia)

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