EDUARDO Leite, the governor of the state of Rio Grande do Sul in southern Brazil has authorised the development of a new 83.5km line connecting Porto Alegre with Gramado. The proposed passenger service on the line will reduce current travel times from four hours by road to just one hour by rail.

In what is Brazil’s first private rail concession awarded exclusively at state level, the line will be built by SulTrens Transportes Ferroviários, a special-purpose consortium formed by RG2E, STE and BF Capital. Sultrens, backed by private capital, will pay Reais 4.5bn ($US 830m) for the 99-year concession, which covers the design, construction, operation, and maintenance of the line. Commercial services are scheduled to begin in 2032.

The double-track alignment will include nine tunnels and 15 bridges and viaducts The Porto Alegre terminus will be located just 700m from Salgado Filho International Airport, offering convenient air-rail connectivity. Gramado in the Serra Gaúcha is one of Brazil’s leading tourist destinations.

“This railway will open the Serra Gaúcha to new tourism experiences, while providing reliable and comfortable travel for residents and visitors alike,” says Renato Ely, administrator of SulTrens.

SulTrens previously developed the project’s feasibility study (EVTEA), which was delivered to the state government in December 2024.

For detailed data on rail projects across South America, subscribe to IRJ Pro.