Transtejo Wants to Cut State Funding in Half — By Turning Ferry Terminals Into Shopping Hubs and Selling Tickets to Cristo Rei

Transtejo-Soflusa, the state-owned ferry operator that connects Lisbon to the south bank of the Tejo, loses more than €20 million a year. But its new president, Rui Rei, believes he can cut that deficit in half—not by raising passenger fares, but by treating ferry terminals like commercial real estate and tourists like a revenue stream worth capturing.

In an interview published this week, Rei outlined an ambitious commercialization strategy: converting terminals into retail and fitness hubs, launching hop-on-hop-off tourist circuits on the river, selling bundled tickets to Cristo Rei, introducing paid parking at premium locations like Cais do Sodré, and allowing private water taxis to operate from public terminals.

"The total operation costs €35 to €40 million," Rei explained. "We have a deficit of just over €20 million, which means half the operation does not pay for itself." That shortfall is covered entirely by the state.

Tourists Pay €1.60 to Cross the River. That's the Problem.

The Cais do Sodré–Cacilhas route illustrates the core tension. The crossing transports ten million passengers a year, but more than 80 percent during the day are tourists. They pay the same €1.60 fare as a commuter with a monthly pass—a price Rei calls unsustainable.

"Does it make sense for a tourist to pay €1.60 to cross here?" he asked. "Public service does not generate money. If the bus company only runs on ticket revenue, it doesn't pay for itself either. That's why there are state compensations."

Transtejo's solution is not to raise fares universally, but to introduce dynamic pricing that distinguishes between residents and visitors. "With the changes we're making to ticketing, we can offer positive discrimination to Portuguese citizens and residents of Lisbon and the south bank," Rei said.

He pointed to his previous role managing parking for Parques Tejo in Oeiras, where residents received 120 minutes of free parking daily while visitors paid full rates. "We positively discriminated in favor of municipal residents. Digitally, we can do the same thing here."

Cristo Rei as a Package Deal

Transtejo is already preparing to sell integrated tourist tickets: Cais do Sodré to Cacilhas, the 1301 bus to Cristo Rei, and entry to the monument—all in one purchase. "The tourist needs ease and predictability, not discounts," Rei said.

The company also plans to launch a "hop-on-hop-off" river circuit connecting Cais do Sodré, Belém, Trafaria, Porto Brandão, and Cacilhas. Initially, it will use refurbished cacilheiros (traditional ferries), including the São Paulus, a vessel currently operated by Carristur that Transtejo wants to reclaim.

"We have no connection between Parque das Nações and Terreiro do Paço," Rei noted. "We can create that. Or we can allow private operators to run smaller boats—water taxis with five, ten, or twenty seats. Our terminals, except Belém, are exclusively for public transport. They should not be. They should have both public and private transport."

Terminals as Commercial Assets

Rei's most concrete plans involve converting ferry terminals into mixed-use spaces. At Barreiro, which handles 11 million passengers a year but generates only €4.1 million in occasional fares, the terminal currently has "a café or two" and little else.

"What's stopping that terminal from having a supermarket, a set of shops, and attractiveness it doesn't have today?" Rei asked. "We already have a pre-study for Barreiro to provide comfort to customers and services to the terminal."

The same logic applies to Cais do Sodré, which moves ten million people annually. "We're going to have news here in the next two or three months," Rei said. "Possibly a gym, something related to food and drink, things people feel they need. Not just a place to pass through."

The company is also introducing paid parking at Cais do Sodré—"the prime area of the city," as Rei put it—and plans to monetize parking at the Barreiro terminal through a concession agreement.

Advertising as Untapped Revenue

Advertising is another missed opportunity. Transtejo currently earns €3,000 per month from static ads on pontoons. Rei believes the company should be generating over €1 million annually.

"We've already wrapped one ship with Coca-Cola," he said. "We want an operator to take on the electric ships. It's a tremendous showcase." The company is preparing a tender for a comprehensive advertising concession covering pontoons, terminals, and the fleet.

Public Service at Market Prices?

Rei is acutely aware of the political sensitivities. When asked if Transtejo is prepared for potential market liberalization—an idea floated by opposition parties including the Liberal Initiative—he was blunt.

"I have no problem with the state making a contract with Transtejo similar to what it does with private operators," he said. "But I'm not in favor of capitalists who sit in the shade of the state."

He pointed to the Sado ferry, which charges €25 for a car with passenger to cross from Setúbal to Troia. At Belém–Trafaria, the equivalent fare is €3.30 plus €1.60 for a passenger.

"At those prices, I'd want to operate too," Rei said. "But they have to allow us the same conditions."

Will It Work?

Rei's plan assumes tourist demand will remain strong, that terminal commercialization can compete with nearby retail (a Pingo Doce supermarket next to Cais do Sodré already draws heavy foot traffic), and that pricing differentiation won't trigger political backlash.

If successful, it would represent a rare case of a Portuguese state-owned transport company significantly reducing its operating subsidy without cutting service. If it fails, it will join the long list of public transport commercialization schemes that sounded better in the boardroom than they performed in practice.

For now, Rei is confident. "We're working to reduce state funding to half. State funding for this company can be cut in half."

The next two years will determine whether he's right—or whether Portugal's chronic productivity challenges extend even to selling tourists a boat ride to Cristo Rei.