The Government of São Paulo in Brazil has signed a Public-Private Partnership (PPP) contract with the Portuguese group Mota-Engil to build and operate the long-awaited Santos–Guarujá immersed tunnel, a major infrastructure link in the Baixada Santista region that will improve connectivity between the cities of Santos and Guarujá.

The deal fulfills a long-standing demand in the Baixada Santista region and ensures investment of close to R$7 billion (US$1.34 billion). The project will deliver Brazil’s first immersed tunnel, constructed using prefabricated segments built outside the navigation channel and then sunk into the seabed of the Port of Santos. Made up of six sections, the development includes an 870-metre tunnel under the port channel, with three traffic lanes in each direction, as well as dedicated pedestrian and cycling paths and a service gallery. The 30-year agreement also includes responsibility for operating and maintaining the infrastructure. 

The initiative is being positioned as a major driver of both urban growth and logistics improvement across the Baixada Santista. Once completed, the link is expected to cut travel time between Santos and Guarujá to about five minutes, compared with the current 40-km road route that takes roughly an hour. Ferry services, on the other hand, are often disrupted by weather and vessel traffic. The preliminary environmental licence has already been granted by Cetesb, confirming the project’s feasibility and allowing it to advance to subsequent stages, while providing greater certainty and legal assurance for the timeline. The review covered potential effects on mangroves, wildlife, vegetation, noise levels and land acquisition, and set out the requirements to be followed during the tunnel’s licensing process.

In addition to the main structure, road interventions are planned in Santos and Guarujá to improve local traffic flow and prepare the cities for the new vehicle volumes. These complementary works are expected to begin as early as 2027, under the oversight of Artesp, the regulatory agency responsible for monitoring compliance with the schedule and ensuring transparency.