Portugal's €1B Rail Overhaul: Alstom to Build 153 Trains and New Factory

LISBON, Portugal – March 10, 2026 – Portugal is set to embark on the most significant modernization of its railway system in history, following the finalization of a landmark €1.03 billion contract between the national rail operator, Comboios de Portugal (CP), and French manufacturing giant Alstom. The agreement includes the supply of 153 new-generation trains and, in a major boost for the national economy, the establishment of a new Alstom manufacturing facility in the north of the country.

This historic acquisition is poised to replace a substantial portion of Portugal's aging rolling stock and dramatically expand capacity on crucial suburban and regional lines, promising a transformative impact on public transport for millions of citizens.

A New Era for Portuguese Rail

The deal represents a critical step in a long-overdue renewal of Portugal's rail fleet. For decades, the network has relied on trains that, in some cases, are over 70 years old. Despite multiple modernizations, the aging equipment has contributed to service unreliability and capacity constraints, particularly in the country's bustling metropolitan areas. This new investment aims to reverse years of underinvestment and propel the nation's rail services into the 21st century.

The order comprises 153 Adessia Stream trains. A fleet of 98 commuter trains will be deployed to strengthen vital suburban connections in the Lisbon, Porto, and Cascais areas, while the remaining 55 trains are destined for regional lines across the country. The first of these state-of-the-art trains are scheduled to enter service in 2029, with an accelerated delivery plan agreed upon to meet surging passenger demand.

The project is a cornerstone of a wider government strategy to overhaul national infrastructure, financed through a combination of the national budget, Portugal's Environmental Fund, and the European Union's Recovery and Resilience Plan (PRR).

“This project supports CP’s vision to deliver more reliable and accessible rail services for passengers while preparing the network for future demand,” said David Torres, Managing Director of Alstom Portugal, in a statement. He emphasized that the partnership will deliver a “long-term impact by strengthening local capabilities.”

Building Trains in Portugal, For Portugal

A pivotal component of the agreement is Alstom's commitment to build a new, state-of-the-art train manufacturing facility in Matosinhos, within the Porto metropolitan area. This represents a significant foreign direct investment and a vote of confidence in Portuguese industry. The sprawling 20,000-square-metre site, to be constructed in partnership with Portuguese company DST, will be equipped with modern production technologies and will be responsible for delivering the new fleet.

The new factory is projected to create close to 300 direct jobs spanning engineering, technical, and skilled trades. In a notable social commitment, Alstom has pledged to reserve 15% of these positions for young unemployed people, the long-term unemployed, and individuals with health conditions or impairments. The economic ripple effect is expected to be substantial, with estimates suggesting the creation of over 1,000 additional indirect jobs in supply chain industries like logistics, tooling, and component manufacturing.

This localization of production marks a strategic shift, aiming to build a self-sustaining rail industry ecosystem within Portugal. Plans are also underway to collaborate with the University of Porto on specialized degree programs to cultivate a new generation of rail engineering talent.

Bruno Florence, Alstom's Project Director for CP, noted the project's alignment with national priorities. “Renewing the regional and suburban fleet is a key priority for CP. This contract addresses operational needs while aligning with Portugal’s broader objectives for capability building, sustainable mobility, industrial development and job creation,” he stated.

The Commuter Experience Transformed

For the daily commuter and regional traveler, the arrival of the Adessia Stream trains promises a radical improvement in comfort, accessibility, and reliability. Each three-car train is designed to carry up to 450 passengers, featuring a level floor throughout and step-free access to accommodate all passengers, including those with reduced mobility.

Developed with extensive feedback from accessibility organizations, the trains will include dedicated spaces for wheelchairs and bicycles, modern passenger information systems, onboard Wi-Fi, and power sockets. The design also prioritizes sustainability, adhering to eco-design principles that ensure a final recyclability rate of over 95%. The trains are engineered to be 20% more energy-efficient than previous generations, utilizing lightweight materials and climate-friendly air conditioning systems.

This focus on the passenger experience is intended to make rail a more attractive and viable alternative to private cars, a key objective in Portugal's strategy to reduce carbon emissions and urban congestion.

A Strategic Win in a Competitive Market

Securing the contract was a significant victory for Alstom, concluding a highly competitive and protracted tender process that saw it vie against other major European manufacturers, including CAF and Stadler. The procurement was delayed by nearly two years due to legal challenges from competitors, a hurdle that was finally cleared in mid-2025, allowing the landmark deal to proceed.

The win solidifies Alstom's already dominant position in the Iberian Peninsula. The company has operated in Portugal for over three decades, and its technology is already present in two out of every three trains running in the country. By coupling the massive train order with a commitment to local manufacturing, Alstom has created a powerful model for partnership that aligns with national economic development goals.

This investment is a key part of Portugal's ambitious 'Ferrovia 2020' program and its broader 2050 rail strategy, which aims to double the market share of railway passenger transport. As the new trains begin rolling out of the Matosinhos factory and onto the tracks from 2029, they will symbolize not just a modernization of transport, but a significant step forward in the nation's industrial and environmental ambitions.