Santos-Guarujá Tunnel in São Paulo: A Century-Old Demand Finally Addressed

The São Paulo government has released the tender notice for the Santos-Guarujá Tunnel, marking a pivotal moment in Brazil’s infrastructure history.

This project, valued at R$6 billion ($1 billion), will create Latin America’s first submerged tunnel, addressing a century-old demand for a permanent connection between Santos and Guarujá.

The announcement sets the stage for an auction on August 1, with construction expected to begin later this year. Currently, over 21,000 vehicles, 7,700 cyclists, and 7,600 pedestrians rely on ferries and small boats to cross the channel daily.

This inefficient system often causes long delays. The new tunnel will cut travel time to mere minutes, enhancing mobility and logistics in the region. Spanning 1.5 kilometers with 870 meters submerged at a depth of 21 meters, the tunnel will feature six lanes—three in each direction—including one for Light Rail Vehicles (VLT).

It will also include dedicated paths for pedestrians and cyclists. The project is part of Brazil’s Growth Acceleration Program (PAC) and São Paulo’s Investment Partnerships Program (PPI-SP).

A public-private partnership (PPP) will finance the project. Public funds will cover 86% of the R$5.96 billion ($993 million) cost. The federal and state governments will evenly split the funding.

São Paulo’s Landmark Tunnel Project

The private sector will cover the remaining amount through competitive bidding. Over its 30-year concession period, the winning bidder will invest R$5.8 billion ($967 million) in construction, operation, and maintenance.

The auction process prioritizes efficiency by awarding the contract to the bidder offering the highest discount on annual public payments capped at R$304 million ($51 million). If a 100% discount is offered, bids will shift to minimizing public contributions. The toll fee for users is set at R$6.15 ($1).

The tunnel’s strategic location near the Port of Santos—the largest in Latin America—will separate urban traffic from port-related logistics, optimizing cargo flow and reducing congestion. Experts expect this improvement will boost regional economic growth and create an estimated 9,000 jobs during construction.

Officials expect Artesp, São Paulo’s transport agency, to strictly oversee construction, which will take five years. This project promises to transform mobility and logistics in Baixada Santista. It also aims to address long-standing demands from residents and businesses alike.