Where old railway lines are given a new lease of life

South America is reactivating old, disused railway lines and modernising its existing rail network, but in many places it is unable to finance full electrification. This is driving up demand for self-contained propulsion solutions. One example is the city of Teresina in north-eastern Brazil, which is modernising its rail network with new multiple units from Marcopolo Rail. For this initiative, the Brazilian train manufacturer sought a propulsion solution that could be deployed without the need for complex electrification infrastructure. The answer lies in mtu PowerPacks, which are being used in Latin America for the first time.

New railway lines in South America are rarely built from scratch. Many operators work with existing networks, limited budgets and infrastructure that often needs modernising. At the same time, the demand for reliable public transport is growing in many cities.

Teresina needs more capacity in its local transport network. That is why the city is procuring new multiple units from Marcopolo Rail. The project marks two firsts: Marcopolo Rail and Rolls-Royce Power Systems are collaborating on a rail project for the first time. Furthermore, the project in Teresina marks the first time that mtu PowerPacks have been used in Latin America.

Rail transport is regaining importance

In several South American countries, rail is regaining importance. In many places, railway lines that have been barely used or inadequately modernised for years are returning to service. At the same time, new initiatives for local and regional transport are emerging.

This trend is also reflected in current infrastructure programmes. According to the development bank CAF, there are currently 155 rail projects in Latin America, with a planned investment volume of around 400 billion US dollars, at various stages of planning and implementation. Brazil, Mexico, Colombia and Peru are among the region’s most important investment markets.

In Chile, for example, Marcopolo Rail has already supplied three trains for the 88-kilometre route between Talca and Constitución. At the same time, the demand for efficient transport solutions within cities is growing. Expanding conurbations require modes of transport that can reliably carry large numbers of passengers and be operated economically. This is precisely where the current modernisation project in Teresina comes in.

“Brazil is modernising many railway lines that have been out of service for years,” says Petras Amaral Santos, Managing Director of Marcopolo Rail. For Santos, such projects are exemplary of a market in which regional and inter-regional rail links are regaining importance.

Trains for everyday life in a growing city

Many new rail initiatives are emerging in regions where operators are carefully weighing up the need for major infrastructure investment. New overhead lines, substations and power supply systems can quickly drive up costs. At the same time, cities and regions need viable transport solutions within a reasonable timeframe.

“The idea is to offer solutions that have their own propulsion system and do not depend on overhead lines or other systems requiring high levels of investment,” says Santos. It was precisely this requirement that set the direction for the project.

The solution: an integrated self-sufficient propulsion system

Whilst searching for a new supplier, Marcopolo Rail entered into discussions with Rolls-Royce Power Systems a few years ago. This contact led to the collaboration on the modernisation project in Teresina.

Marcopolo Rail is supplying three multi-unit trains for the Teresina rail system. The system is operated by the state-owned Companhia Ferroviária e de Logística do Piauí (CFLP). Rolls-Royce Power Systems is supplying six mtu PowerPacks for the three multiple units, which were delivered at the end of 2025. The first train was commissioned in August 2026 and entered assisted operation service in October 2026.

The mtu PowerPack combines the key components of the propulsion system into a single integrated system. For Marcopolo Rail, the practical benefits are paramount: the trains can operate independently of an electrified infrastructure, and operators are provided with a solution that can be integrated into existing networks.

Santos sees this as a key advantage for many projects in South America. In numerous regions, investment in rolling stock and infrastructure is in direct competition with one another. Operators must therefore carefully weigh up how they allocate their resources.

At the same time, the question of more efficient propulsion concepts is coming to the fore. “The trend is towards solutions such as hybrid propulsion systems, which incorporate batteries or electric systems with,” says Santos. This is not just about emissions. Many operators are focusing on the total operating costs of their fleet. “It’s not just about CO₂ and emissions. It’s also about range and costs,” says Santos. Greater ranges and lower fuel consumption influence cost-effectiveness over the entire lifespan of a vehicle.

More than a single project

For Marcopolo Rail, Teresina marks the start of a new collaboration. At the same time, the company views the project as part of a wider trend in the South American rail market. Many regions in South America are not rebuilding their rail networks from scratch. Instead, they are modernising existing lines and seeking solutions that suit their economic and technical circumstances.

Teresina demonstrates how this approach works in practice: Marcopolo Rail supplies rolling stock for urban transport. Rolls-Royce Power Systems provides the propulsion system. Together, they are creating a solution for a market that is gradually renewing its rail infrastructure, relying on pragmatic, long-term sustainable concepts.

The collaboration does not end with Teresina. Following the delivery of the first six mtu PowerPacks for the three multiple units in Teresina, a further six systems are set to follow by the end of 2026. These will power three light multiple units for the suburban rail project in the Brazilian city of Arapiraca in the state of Alagoas.

This project is jointly funded by the Brazilian Ministry of Transport, the state of Alagoas, the city of Arapiraca and Transnordestina Logística. Teresina will therefore not be the only location where the systems are deployed. Further mtu PowerPacks are set to enter service in Brazil as early as the end of 2026.