By using this site, you agree with our cookies usage in accordance with our cookies policy. You can always disable cookies in your browser settings.

6+

6+

Global players use national associations to oppose China’s entry into Brazilian rolling stock market

23 May 2025
Reading time ~ 3 min
A CPTM train at a station
A train by CRRC at a station in Brazil. Source: Seetaoe
Savenkova Ekaterina, Editorial Contributor to International Projects of ROLLINGSTOCK Agency
Reading time ~ 3 min
Stolchnev Alexey, Russian Projects Editor, ROLLINGSTOCK Agency

Brazil: The Brazilian Association of the Railway Industry ABIFER and the Interstate Union of the Railway and Road Materials and Equipment Industry SIMEFRE have issued a statement to this effect. They have criticised the memoranda of understanding inked last week by the governments of the two countries on cooperation in the rail sector.

The memoranda are related to impressive railway development plans announced by the authorities of the South American country. They involve an investment of €21 bln and construction of 18,800 km of track as part of 15 projects.

According to Rui Costa, the Chief of Staff of the Presidency, the memoranda provide for support to Chinese companies to build production facilities in the country to produce metro cars, LRVs and other rolling stock. Chinese companies will also be given the opportunity to receive advance information about infrastructure tenders planned to be published.

ABIFER and SIMEFRE are opposed to China setting up new production facilities in the country as they believe that local producers can fully satisfy all the needs of the domestic market. The association and the union stress that if China were to increase its presence in the market, Brazilian players would face long periods of downtime due to erratic government investment.

It’s important to take into account that many members of both organisations are global players in the rolling stock and component markets, many of whom have production facilities in the country. These include Alstom, Siemens, CAF, Plasser & Theurer, Robel, Knorr-Bremse, Wabtec, Greenbrier, Progress Rail, Amsted Rail, Hyundai Rotem, etc. from the US, South Korea, Europe and other countries.

As for the national rolling stock manufacturers, they continue to be represented by producers of freight cars, the most important being Randon, and small series of LRVs, such as Marcopolo Rail. At the same time, Brazil and other LatAm countries have great potential for purchasing rolling stock, although lack of funding and political instability are affecting demand.

Against this background, Chinese CRRC has been actively increasing its presence in the Brazilian market in recent years. For example, it has orders for 44 trains for the São Paulo metro, 15 intercity and 7 commuter trains for the São Paulo–Campinas line, 24 trains for the Belo Horizonte metro and passenger coaches for mining company Vale. In February, it was reported that CRRC was planning to open a manufacturing plant in Brazil.

Follow us on LinkedIn and Twitter!