Sao Paulo €389-million contract goes to Spain’s CAF

Compañía Paulista de Trenes Metropolitanos (CPTM), the railway transit company of the São Paulo State has awarded CAF a contract for the supply of 35 8-car units (280 cars), for an amount close to €380 million which will be funded with the São Paulo Government’s own funds. CAF was the successful bidder of the tender ahead of the Korean-Brazilian consortium IESA- Hyundai Rotem and the Chinese company Changchun Railway Vehicles Co., with the first units being scheduled for delivery in early 2015.

The São Paulo City, capital of the most active and industrialized State in Brazil, is one of the largest conurbations in the world, with more than 20 million inhabitants. CPTM is a company associated with the Secretary of State of Metropolitan Transport which  manages the railway transit of 22 towns in the Metropolitan Region of São Paulo carrying more than 2.6 million pax./day. This new contract adds to the process of extension and modernization of the City’s transit network.

This project combines with other recent projects implemented by CAF in Brazil, among which the Units supplied for the São Paulo Metro and the various contracts for the supply of suburban units to CPTM stand out.

Furthermore, CAF is also executing a number of contracts in this country, such as the supply of 26 additional units for the São Paulo Metro, 15 electric trains which will run in the Brazilian city of Recife, as well as the turnkey project for the construction of the civil works, electromechanical systems and the supply of 40 7-module units of a new tram in the metropolitan region of Cuiabá, capital of the Mato Grosso State, in a consortium with local civil works companies.

In addition, it should be noted that in late 2012, the FROTA BH Consortium, led by CAF, won the award of a contract for the supply of 10 trains for the Brazilian city of Belo Horizonte, in combination with another contract for the manufacturing of bogies for 15 new trains for the city of Porto Alegre.

“The aggregate of these Brazilian projects, amounting to more than €2 billion, consolidates CAF as the largest rolling stock manufacturer in Brazil,” CAF said in a press release. It should be borne in mind that the Basque company operates a manufacturing site in Hortolandia (São Paulo State) which is the one of the most modern rolling stock manufacturing plant in Latin America.

Combined with the 2013 awards of several contracts for the cities of Tallinn, Freiburg and Kaohsiung in Taiwan, this new project reinforces the global strategy of the company, with a backlog at the first quarter end of this year amounting to €4.87 billion, with more than 85% exports.

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The Corner
The Corner has a team of on-the-ground reporters in capital cities ranging from New York to Beijing. Their stories are edited by the teams at the Spanish magazine Consejeros (for members of companies’ boards of directors) and at the stock market news site Consenso Del Mercado (market consensus). They have worked in economics and communication for over 25 years.

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