Portugal Railway Renaissance: 153 New Alstom Trains and Record Profits Herald a New Era for CP

After decades of underinvestment and declining public confidence, Portugal's national railway operator Comboios de Portugal is undergoing a transformation that could reshape how millions of residents and visitors move through the country. A billion-euro train order, record profits, and a politically charged debate over subconcessions are converging to put CP at the centre of Portuguese transport policy.

A Billion-Euro Fleet Renewal

French rail manufacturer Alstom has confirmed a contract worth 1.03 billion euros to supply 153 Adessia Stream trains to CP. The deal, originally signed in October 2025 for 117 units, was expanded this month to include 36 additional trains, with first deliveries brought forward to 2029.

Of the 153 trains, 98 will serve suburban networks around Lisbon, Porto, and the Cascais line, while 55 will operate on regional routes connecting smaller cities and towns. The new rolling stock promises significant improvements over CP's ageing fleet: better accessibility, onboard Wi-Fi, modern comfort standards, and reduced maintenance costs.

Perhaps the most consequential element of the deal is where the trains will be built. Alstom is constructing a new 20,000-square-metre manufacturing facility in Matosinhos, in Greater Porto, in partnership with Portuguese civil works company DST. The factory will create around 300 jobs, with 15 per cent of positions reserved for young unemployed people, long-term unemployed individuals, and people with disabilities.

From Losses to Profits

Infrastructure Minister Miguel Pinto Luz told parliament this week that CP will post profits exceeding the three to four million euros some analysts had forecast. He pushed back sharply against Socialist Party deputies who he accused of mocking the company's performance in social media videos.

"The CP today wins awards, the CP today is robust, the CP today is offering a service it has never offered before," Pinto Luz declared. The minister's bullish tone reflects a broader narrative the government is building around public transport: that strategic investment and operational reform can turn around a company long associated with delays, cancellations, and crumbling infrastructure.

The turnaround is partly driven by surging demand. Passenger numbers on CP services have climbed steadily, buoyed by the introduction of nationwide rail passes and a growing preference for train travel amid rising fuel costs. The Middle East energy crisis, which has sent petrol prices climbing for the third consecutive week, is only accelerating the shift.

The Subconcession Question

Not everything about CP's future is settled. The government has mandated the company to present proposals within 90 days for subconcessing four suburban lines: Cascais, Sintra/Azambuja, Sado, and Porto. The first decision is expected in the first half of 2026.

Pinto Luz insists the subconcessions would operate under the CP brand and management, distinguishing them from the Fertagus model where a private operator runs the Tagus crossing line independently. The goal, he says, is to free CP to redirect resources toward neglected regional lines.

But the plan has drawn fierce criticism from the PS, trade unions, and some passenger advocacy groups who fear it represents the first step toward full privatisation of profitable urban networks. The debate is likely to intensify as details emerge.

What It Means for Residents and Expats

For the growing number of foreign residents in Portugal, particularly those who have settled in commuter towns around Lisbon and Porto, the rail upgrade could be transformative. The Cascais line, used heavily by both tourists and residents of the Estoril coast, is among the most congested and poorly served routes. New trains with modern amenities and higher capacity should ease daily commutes that currently rank among riders' top complaints.

The Matosinhos factory also signals a shift in Portugal's industrial ambitions. By insisting that trains be built domestically, the government is attempting to capture not just the transport benefits but the economic multiplier of a major manufacturing investment in the north of the country.

Whether CP can sustain its turnaround will depend on execution. The trains must arrive on schedule, the subconcession model must avoid the pitfalls of past public-private partnerships, and the promised investment in neglected regional lines must materialise. But for now, Portugal's railways are moving in a direction they have not moved in a generation. On the rail-infrastructure side, Mota-Engil's €113.5 million Contumil-Ermesinde quadruplication on the Linha do Minho sets the latest reference.