The history of Porto Velho, the capital of the state of Rondônia, is inextricably linked to one of the most ambitious projects of the early 20th century in Brazil — the construction of the Madeira-Mamoré Railway. Although October 2, 1914, is considered the official date of the city's founding, a settlement emerged on this site as early as 1907 as a camp for workers. Its location on the banks of the Madeira River made it a strategic point for the realisation of this grand engineering concept.
The key factor in the establishment of Porto Velho was precisely the Madeira-Mamoré Railway (1907-1912). Its purpose was to bypass the impassable rapids on the river and ensure the export of rubber from Bolivia and the interior regions of the Amazon to Atlantic ports. This attracted thousands of workers from various nations to the region, including from Caribbean countries, which laid the foundation for the city's multicultural character. The economy of early Porto Velho was entirely dependent on the "rubber boom" and the operation of the railway.
Following the completion of construction and the subsequent decline of the rubber boom, the city's economy experienced a downturn. However, its geographical position and established infrastructure allowed it to survive. A new impetus for the development of Porto Velho was provided in 1943 when it was granted the status of capital of the Federal Territory of Guaporé, which was later transformed into the state of Rondônia. In the mid-20th century, the discovery of deposits of cassiterite (tin ore) and gold, as well as the development of agriculture, contributed to a new influx of migrants and the further growth of the city.