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São Paulo State Government opens a public query for the Intercity Train concession

São Paulo State Government opens a public query for the Intercity Train concession
São Paulo State Government opens a public query for the Intercity Train concession. Inputs and questions about the Public-Private Partnership project for the North Axis ― between São Paulo and Campinas ― will be accepted until September 20th.

by Mauricio Ortega

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São Paulo State Government, through the Secretariat of Metropolitan Transportation State (STM), presented on August 16th, in a public hearing, in the City of Campinas (SP), the Intercity Train project (TIC) for the North Axis, which will link Campinas to São Paulo.

The public query notice was published on August 18th, and it began on August 19th. The deadline to receive suggestions about the Intercity Train is September 20th, 2021.

The query covers the concession ― including construction and operation ― of the Intercity Train (TIC) North Axis services, the Intermetropolitan Train (TIM), and the operation, maintenance, and construction works ― with the improvement of the performance and quality of service ― of CPTM’s Line 7-Rubi.

The public notice should be published in December 2021 and the auction should take place in April 2022.

Project and investments

According to the project, the concession will provide the following services for 30 years:

/ Intercity Train (TIC), operated between Campinas and Barra-funda, with a single stop in Jundiaí;

/ Intermetropolitan Train (TIM), operated between Francisco Morato and Campinas; and

/ Line 7-Rubi operated between Palmeiras-Barra-funda and Francisco Morato stations.

TIC will be 101 km long, with only 3 stations and an estimated travel time of one hour and four minutes, with 800 passengers, all seated. The project includes the acquisition of 15 new trains with a capacity of 140 km per hour. The Intercity Train fare will have as a reference the amount charged for a bus ticket between Campinas and São Paulo (today, R$ 37.10) and may reach R$ 55.30.

For TIM and Line 7, the project also includes the acquisition of 7 new trains to be added to the 38 existing ones. The fare for both services will be the same as for the other lines (currently R$ 4.40).

The total amount for three investment fronts corresponds to R$8.57 billion: (a) the acquisition of the TIC and TIM trains (R$1.67 billion); (b) the track, including power systems, signaling, permanent tracks and stations (R$4.75 billion); and (c) the modernization of the Line 7-Rubi (R$2.15 billion).

The project also includes the split in different tracks of the cargo operation (currently granted to MRS Logística), today between Campinas and Barra-funda, and the passenger transport. Line 10-Turquesa and the connection between it and Line 7, which will no longer exist, were left out of the project.

Operating model

The future concessionaire will be paid by the Intercity Train (TIC) direct revenue and by the consideration paid by the State Government for the services provided by Line 7 and by the Inter-Metropolitan Train (TIM).

The concession also includes exploitation of on-board services, exploitation spaces for commercial services, commercial leases, parking lots, and advertising communication, using graphic and digital media on the routes, stations, and wagons.

Bidding

In the international competitive bidding modality, only the bidder with the best commercial proposal will be qualified (phases inversion). The public notice authorizes consortia of nationals, foreigners or both togheter.

As a proposal warranty, the bidder should offer until 1% of the total investments amount expected in the proposal and, to sign the contract, the bidder should set up a concessionaire (SPE), pay-up capital stock, hire performance bond, prove experience in the public transport operation business and, if it is an investment fund, prove payment of the capital required in the public notice.

As a condition to the qualification, the interested parties must show that they have a net worth of at least 10% of the total investment expected.

In terms of technical qualification, the qualified company must be able to prove experience in infrastructure asset management with a minimum value of R$1.286 billion and annual operating revenues of at least R$300 million.

The public query documents (including the public notice drafts, contract, and attachments) are available on the website of the Secretariat of Metropolitan Transportation State.

Contributions and suggestions can be made until next September 20th (2021).
 
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