Portugal's Competition Authority today recommends opening rail competition and holding an international public tender

en.Wedoany.com Reported - The Competition Authority (AdC) today published a study on competition in Portugal's rail passenger and freight sectors, recommending that the government extend the public service contracts of Comboios de Portugal (CP) only for the period "strictly necessary" for the amortization of investments, after which the market should be opened through international public tenders.

The AdC had recommended in 2018 that rail passenger public service contracts be awarded through public tenders, but that recommendation was not adopted; in 2019, the contracts were awarded directly to CP, valid until 2029, with an option for a five-year extension. The government announced in January 2026 its intention to extend the contracts until 2034. In its report, the AdC maintains its previous position, emphasizing that extensions should not exceed the period necessary for the amortization of investments. The report notes that this is a critical period for Portugal, given the large-scale investment in rail infrastructure, the construction of high-speed lines, the procurement of rolling stock, and the preparation of future public service contracts for rail passenger transport.

The AdC recommends that, before defining future contracts, the public service needs of each line in the existing network be reassessed, identifying lines with commercial potential that may not need to be included in the scope of public service contracts. Ancillary services, which may become the main subject of future contracts, should be contracted separately, and all sub-concessions must be awarded through competitive procedures.

Regarding the Fertagus concession contract, which is expected to expire in 2031, the AdC recommends that the concession not be renewed and that a new public service contract be awarded through an international public tender.

The report addresses a series of recommendations to the government, Infraestruturas de Portugal (IP), the Mobility and Transport Authority (AMT), and existing rail passenger operators to promote competition, including opening the market through tenders and allowing operators to provide commercial services on economically viable lines. The AdC states that this aims to benefit consumers, businesses, and the economy through lower prices, higher quality, greater supply diversity, and increased efficiency.

After assessing the experience of European countries in opening rail competition, the AdC considers the benefits to be clear. In eight cases analyzed by the European Commission, average fares fell by 28% in the period immediately following market opening, and service frequency increased significantly; rail freight liberalization in Europe has been associated with lower prices, improved operational efficiency, greater supply diversification, and increased demand in some market segments.

The AdC notes that new operators entering the rail market face two major barriers: access to rolling stock and human resources. Future tenders should guarantee new operators effective and non-discriminatory access to the required rolling stock, and measures should be adopted to allow for the transfer of employees to new concessionaires.

The study also addresses the specific technical conditions of Portugal's national rail network. Due to the widespread use of Iberian gauge, it is particularly difficult for operators to obtain rolling stock in Portugal. The AdC recommends that the government consider the potential negative impact of this gauge on competition when planning future high-speed rail lines (including the Porto-Lisbon connection) and communicate gauge decisions in a timely manner; if a future gauge conversion is anticipated, the relevant standards and timeline should be published to ensure investment predictability.

Regarding railway signaling systems, the AdC recommends the timely implementation of the European Rail Traffic Management System (ERTMS), with a transitional period providing a system that can integrate with CONVEL and is open to all interested operators. In terms of ticketing services, barriers faced by alternative ticketing platforms in providing their services should be removed, ensuring their effective and non-discriminatory access to the required information.