Governor Tarcísio de Freitas (Republicanos) announced Tuesday that he will not privatize the older lines of the São Paulo Metro [1].
The decision shifts the state's approach to public transportation infrastructure, moving away from a broader privatization strategy to prevent the concentration of rail assets.
De Freitas, who is a pre-candidate for re-election, said the state cannot allow the rail network to fall into the hands of a few concessionaires [1]. He said that such a concentration could create a monopoly and jeopardize the quality of service provided to passengers [1].
In addition to halting the privatization of the old lines, the governor announced a review of the concession for the airport monorail line [1]. This specific line has been a point of contention due to its financial performance.
"Linha que vai até o aeroporto é deficitária," de Freitas said [2].
The governor's move comes as he balances infrastructure management with his political positioning for the upcoming election. By maintaining state control over these core assets, the administration aims to ensure that the rail system remains competitive, and accessible [1].
The review of the monorail concession is expected to address the financial gaps that have made the airport link deficitary [2]. The state will now evaluate how to stabilize the line's operations without compromising the broader network's stability [1].
“The state cannot concentrate the rail network in the hands of a few concessionaires.”
This policy reversal indicates a strategic pivot by the São Paulo government to prioritize market competition over total privatization. By blocking a potential monopoly, the administration is attempting to maintain leverage over service quality and pricing, while simultaneously addressing the fiscal instability of the airport monorail link.
