LISBON (Reuters) -Portugal’s state-owned railway operator CP said on Friday it will purchase 117 self-propelled electric railcars from the French-Portuguese consortium Alstom/DST for €746 million ($871 million), in its largest acquisition to date.
Infrastructure Minister Miguel Pinto Luz said in a separate statement that “the government is betting on the railway” and the purchase would address long-standing delays in modernising CP’s fleet and improve the quality of service for growing passenger numbers.
CP said the deal includes 118 million euros in co-financing from European funds and 212.5 million euros from the Portuguese Environment Fund.
Delivery of the first units is scheduled for 2029, allowing “the renewal and modernisation of part of CP’s fleet and the reinforcement of its supply capacity,” it added.
The contract also includes the construction of a rolling stock maintenance workshop in the city of Matosinhos in north Portugal.
($1 = 0.8569 euros)
(Reporting by Sergio Goncalves; Editing by Louise Heavens)
