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Nobody wants to build a high-speed train in Brazil

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Staff writer ▼ | August 14, 2013
The Brazilian government again postponed the bidding process for a bullet train project, the link between the country's two largest cities. The reason: A lack of competition from potential bidders.
Brazil bullet train
Brazil bullet trainThe Brazilian government again postponed the bidding process for a bullet train project, the link between the country's two largest cities. The reason: A lack of competition from potential bidders.


Transportation Minister Cesar Borges said a press conference the suspension of the bidding process for the Sao Paulo-Rio de Janeiro high-speed train project, which had been scheduled for August 16, would last one year at least. Despite the postponement, the government still plans to have the rail line fully operational by 2020, the minister said.

The government decided to delay the bidding process after it found only one consortium of French firms offered their proposal, and companies from Spain and Germany had asked for more time to analyze the project. The project, called essential for improving transportation links between Rio and Sao Paulo, has repeatedly suffered setbacks as the government fails to get enough interest from international bidders.

In its first attempt to open bidding for the project in 2010, the Brazilian government had to twice extend the deadline as potential bidders asked for more time to prepare their proposals. Another attempt in July 2011 ended with no companies offering bids.

Brazilian officials estimate the 510.8 kilometers long project needs a total investment of approximately $14.5 billion (33 billion reais). The high speed rail is expected to transport 33 million passengers in its first year of operation and 100 million by 2030.


 

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