São Paulo prosecutor's office wants metropolitan train concession cancelled

The public prosecutor's office (MP) in São Paulo state wants to suspend the concession contract of the consortium ViaMobilidade to operate metropolitan train lines No. 8 and No. 9.

It is calling for the state government to suspend the contract directly, but admits that the matter may go to the courts.

"The public prosecutor's office is awaiting [state metropolitan transport department] STM's decision on the recommendation [made by the MP] on November 29, 2022 to cancel or declare the contract with ViaMobilidade expired. If this doesn't happen, the public prosecutor's office will request the termination of the contract via legal action and will claim [financial] compensation for material and moral damages," a spokesperson for the office told BNamericas.

The STM has until January 26 to respond to the request from the MP, according to the spokesperson. STM did not respond when contacted by BNamericas.

The MP made its request because the concessionaire, which comprises CCR (80%) and RuasInvest (20%), has allegedly failed to solve a series of operational problems on both of the rail lines, including overcrowding of cars and train delays.

The relationship between the concessionaire and the state government has deteriorated in recent months due to various issues and on Monday the tensions increased after a train on line No. 8 was derailed during rush hour, halting operations on the line and forcing users to walk along the track, although no casualties were reported. 

Meanwhile, the concessionaire said it is investing to improve services.

"ViaMobilidade is in the first year of a 30-year concession contract, in which more than 1bn reais [US$1.94bn] has already been invested of a total of 3.8bn reais outlined in the first three years alone," Viamobilidade said in a written statement sent to BNamericas.

"Improvements such as a general overhaul of trains, corrective action on rails and inspection of overhead lines, for example, are already producing results. In December, complaints and operational failures were reduced by 78% and 76%, respectively, compared with March [2022]. 

"ViaMobilidade has already contracted 36 new trains, which will begin to arrive in the coming months. We are committed to providing the best service and modernizing the lines, contributing to the government's efforts to improve the system as a whole," it added."