Brazil Approves 83.5 km Porto Alegre–Gramado Railway

Brazil's first private railway concession

Rio Grande do Sul state has authorized Brazil's first fully private railway concession. Governor Eduardo Leite approved the 83.5-kilometer passenger line project connecting Porto Alegre with Gramado in the tourist region of Serra Gaúcha.

This revolutionary connection will reduce travel time from four hours by road to just one hour by rail. SulTrens Transportes Ferroviários consortium will invest 4.5 billion reais ($830 million USD) for a 99-year concession covering design, construction, operation, and maintenance.

Financing model innovation

This concession marks a turning point in Brazilian railway transport by demonstrating private financing viability for intercity passenger connections. The model could inspire other Brazilian states facing transport infrastructure modernization challenges.

Route and technical characteristics

The double-track line will cross spectacular landscapes between the state capital and tourist destination Gramado. Infrastructure includes nine tunnels and 15 bridges and viaducts to traverse Serra Gaúcha's rugged terrain.

Strategic airport connection

Porto Alegre terminus will be located just 700 meters from Salgado Filho International Airport, creating optimal air-rail connectivity. This proximity will facilitate connections for domestic and international tourists heading to Gramado.

The strategic location will transform Porto Alegre into a major multimodal hub in southern Brazil, strengthening its attractiveness as gateway to regional tourist attractions.

SulTrens: pioneer private consortium

SulTrens Transportes Ferroviários consortium brings together three partners: RG2E, STE, and BF Capital. This strategic alliance has the private capital necessary to complete this major project without soliciting public finances.

Renato Ely, SulTrens administrator, emphasizes: "This railway will open Serra Gaúcha to new tourism experiences while providing reliable and comfortable travel for residents and visitors alike."

Proven technical expertise

SulTrens previously developed the feasibility study (EVTEA) delivered to state government in December 2024. This prior technical expertise strengthens consortium credibility to deliver the project within announced timelines.

Tourism and economic impact

Gramado, Brazil's leading tourist destination, will benefit from revolutionized accessibility. Travel time reduction from four hours to one hour should significantly stimulate Serra Gaúcha tourism.

Expected economic benefits

• Job creation: 5,000 direct and indirect positions estimated
• Tourism growth: 30% visitor increase projected
• Regional development: Serra Gaúcha accessibility improvement
• Emission reduction: road-to-rail modal shift for 8-12 million annual passengers

The 4.5 billion reais investment will generate multiplier effects on regional economy, particularly in hotel, restaurant, and tourism service sectors.

Timeline and service launch

Commercial service launch is scheduled for 2032, representing seven years of design and construction. This schedule includes environmental impact studies, permit acquisition, and construction phases.

Project key stages

2025-2026: Impact studies, environmental permits
2027-2028: Infrastructure work begins, tunnels and viaducts
2029-2031: Track laying, signaling, technical testing
2032: Commercial service launch, staff training

The 99-year concession guarantees operation sustainability and incentivizes the operator to maintain high quality standards long-term.