São Paulo’s $460M Ferry Overhaul Brings Electric Vessels and New Local Jobs

São Paulo’s water crossings carry approximately 21 million passengers each year, using a fleet in which many vessels are decades old and powered by diesel engines.

A ferry crossing can shape an entire day for people who depend on it to reach work, visit family or keep a business running, making reliable boats and accessible terminals essential parts of everyday life. The World Bank Group will support Brazil's State of São Paulo in a US$460 million overhaul of its waterway transport network, bringing electric vessels, improved passenger facilities and new jobs in shipbuilding and infrastructure construction. An estimated 84,800 users are expected to benefit from improved access to sustainable transport services through a project that connects cleaner travel with investment in the communities served by these crossings.

Electric vessels will replace an ageing diesel fleet

São Paulo's water crossings carry approximately 21 million passengers each year, using a fleet in which many vessels are decades old and powered by diesel engines. The project will bring 45 new vessels into service, including 41 that will be fully electric, representing a substantial change in how the network operates and the emissions associated with its services. Approximately 399,000 tons of CO₂ emissions are expected to be avoided over the project's lifetime, giving the fleet replacement a clear environmental purpose alongside its role in improving daily journeys. Shipbuilding work linked to the new vessels will create employment opportunities as the state invests in the equipment needed to renew this heavily used transport network.

Better terminals will make crossings easier to access

More than 20 passenger terminals will be renovated or newly built, addressing a network where many facilities lack basic amenities and improving access for women, people with reduced mobility and low-income communities. The centerpiece of the terminal investment is a new facility in São Sebastião, designed to accommodate greater numbers of passengers and vehicles at the crossing and relieve pressure on the city's road network. These improvements extend the project's focus beyond the boats themselves to the places where passengers begin and finish their journeys, with waterfront revitalization expected to help stimulate tourism and local commerce. Infrastructure construction will create further jobs, connecting improvements in transport access with economic activity around the crossings.

A 20-year partnership puts funding and responsibility together

The initiative will operate through a 20-year public-private partnership, with the private concessionaire mobilizing US$238 million and the Government of the State of São Paulo providing US$222 million of the total US$460 million investment. The government's contribution includes a US$175 million loan from the World Bank Group, supporting a financing structure that brings public resources and private investment into the same programme. A single private operator will manage the network under one long-term concession, replacing fragmented short-term contracts with an accountable partnership designed to deliver lasting improvements. The project also sets a target to increase women's participation in operational roles from 15 percent to 20 percent, making employment opportunities part of the planned changes to the service.

Cécile Fruman, the World Bank's Country Director for Brazil, described São Paulo's water crossings as a lifeline for millions of people and said the investment would help make them safer, cleaner and more reliable for future generations. She highlighted the combination of private investment and modern electric vessels as an example of business and government working together to provide infrastructure that communities need. For passengers, the value of that partnership will be felt through dependable crossings, easier access to terminals and a transport network better equipped to support the everyday movement of people and vehicles.