CP or Fertagus? AdC asks for opening the railway to competition and gives messages

A Competition Authority (AdC) published, this Thursday, a study on Competition in the Railway Transport Sector of Passengers and Goods in Portugal that recommends opening the railway to competition and makes recommendations to the Government, AMT, Portugal's Infrastructure (IP) and operators to remove barriers to entry into the railway market.

“ This analysis is particularly relevant to the sector, taking into account significant ongoing investments in railway infrastructure, in particular in the construction of high-speed lines and in the purchase of rolling stock, as well as the preparation of future public service contracts for rail passenger transport”, it can be read in a press release to which the Commission considers that the News to Minutes he had access.

The purpose of these recommendations, explains the AdC, goes through “promote competition and allow consumers, businesses and economy to benefit from lower prices, higher quality and diversity of supply and greater efficiency“. 

“AdC considers that competition in rail passenger transport must be promoted through two routes: market competition, through competition for the award of public service contracts, and competition on the market, allowing operators to provide commercial services on routes where this is economically feasible”, can be read. 

CP or Fertagus? AdC recommends new competitions

In addition, AdC recommends that “extension of the public service contract of the CP is limited to the period strictly necessary for the depreciation of investments and subsequently international public tenders are held“.

“The current contract was concluded in 2019, by direct adjustment, lasting until 2029 and possibility of extension for another five years,” he explains.

Thus, “in view of the intention announced by the Government in January 2026 to extend it until 2034, the AdC recommends that this extension be limited to the period strictly necessary for the depreciation of investments“.

More: “AdC further recommends that, prior to the definition of future contracts, the need for public service be reassessed on the routes currently covered, identifying those that have commercial exploitation potential and which, therefore, may not need to be covered by public service contracts.”. 

Regarding state-Fertagos concession contract, “whose term is scheduled for 2031, adC recommends its non-extension and that new public service contracts are awarded through international public procurement“.

AdC maintains that the “european experience analyzed in the study shows relevant benefits of opening up to competition“.

“ In the case of rail passenger transport, the eight cases examined by the European Commission averaged a 28% reduction in ticket prices in the period immediately following the opening of the market. Significant increases in service frequency, including 40% on the ViennaSalzburg link and more than 56% on the Roma-Milan link, have also been observed,” he said. 

Moreover, “also in rail freight, the liberalisation examined at European level is linked to price reductions, operational efficiency gains, increased diversification of supply and, in some cases, increased demand”. 

[News updated at 11:40 a.m.]