Press release 14/2026 

August 20, 2026

The Portuguese Competition Authority (AdC) has published the study Competition in the Passenger and Freight Rail Transport Sector in Portugal, which analyses, from a competition perspective, the main conditions governing access to and operation in the rail sector and identifies barriers to entry and expansion for operators. 

The study sets out recommendations addressed to the Government, Infraestruturas de Portugal (IP), the Mobility and Transport Authority (AMT) and passenger rail operators, with the aim of promoting competition and enabling consumers, businesses and the wider economy to benefit from lower prices, greater quality and diversity of services, and increased efficiency. 

The AdC considers that competition in passenger rail transport should be promoted through two channels: competition for the market, through competitive tendering for the award of public service contracts, and competition in the market, by allowing operators providing commercial services to enter routes where this is economically viable. 

The analysis comes at a particularly important time for the sector, given the significant investment currently under way in rail infrastructure, notably the construction of high-speed rail lines and the acquisition of rolling stock, as well as the preparation of future public service contracts for passenger rail transport. 

Opening the market to competition should be promoted through competitive tendering 

The AdC recommends that any extension of CP’s public service contract should be limited to the period strictly necessary to amortise the investments made and that international competitive tendering procedures should subsequently be conducted. The current contract was awarded in 2019 through a direct award procedure, runs until 2029 and may be extended for a further five years. In light of the Government’s announcement in January 2026 1 of its intention to extend the contract until 2034, the AdC recommends that any extension be limited to the period strictly necessary to amortise the investments. 

The AdC also recommends that, before future contracts are defined, the need for a public service obligation on the routes currently covered should be reassessed, identifying those with commercial potential which may therefore not need to be covered by public service contracts. Ancillary services falling outside the core scope of any new contract should be contracted separately, while any sub-concessions should be awarded through competitive procedures. 

With regard to the State–Fertagus concession contract, which is due to expire in 2031, the AdC recommends that it should not be extended and that new public service contracts should be awarded through international competitive tendering procedures. 

The European experience analysed in the study highlights significant benefits from opening markets to competition. In passenger rail transport, the eight cases analysed by the European Commission recorded, on average, a 28% reduction in ticket prices in the period immediately following market opening. Significant increases in service frequency were also observed, including a 40% increase on the Vienna–Salzburg route and an increase of more than 56% on the Rome–Milan route. 

In freight rail transport, too, the liberalisation analysed at European level is associated with lower prices, operational efficiency gains, greater diversification of services and, in some cases, increased demand. 

Against this background, the AdC considers that the award of a new public service contract to the incumbent operator should be regarded as an exceptional measure, given the costs associated with delaying market liberalisation. In 2018, the AdC had already recommended the use of competitive tendering for the award of the public service contract for passenger rail transport. This recommendation was not followed, and the contract was awarded directly to CP. 

Access to rolling stock and staff is essential for new operators to enter the market 

The AdC identifies access to rolling stock and human resources as two of the main barriers to entry for new operators. 

It therefore recommends that future tender procedures include measures ensuring new operators effective and non-discriminatory access to the rolling stock required, including information on rolling stock available for lease, predefined cost-oriented financial terms and conditions, and a period of access corresponding to the duration of the contract. 

The AdC also recommends assessing measures that would enable staff to transfer to new concessionaires where necessary to facilitate participation in competitive tender procedures. 

Iberian gauge and CONVEL may constrain market entry 

The study identifies technical specificities of the National Rail Network that make access to rolling stock particularly difficult in Portugal. The predominant use of Iberian gauge, which differs from the European standard gauge used across most European rail networks, restricts options for purchasing or leasing rolling stock, reduces the availability of second hand rolling stock and may make investments more difficult to recover. 

Against this background, the AdC recommends that, when taking decisions concerning future high-speed rail lines, including the Porto–Lisbon connection, the Government should take into account the competition implications of opting for Iberian gauge, in particular the risk of limiting the number of operators interested in operating on those lines. It also recommends that a decision on the gauge be communicated in a timely manner and, where future gauge migration is envisaged, that the relevant criteria and timetable be disclosed, in order to provide investment certainty. 

The AdC also recommends the timely implementation of ERTMS — the European Rail Traffic Management System — and, during the transition period, the provision of a system enabling interoperability with CONVEL and open to all interested operators. 

Ticketing: alternative platforms should have access to data 

The study also identifies barriers to the provision of ticketing services by alternative platforms. The AdC considers it essential to ensure effective and non-discriminatory access to the information required to provide such services, for the benefit of consumers. The Authority recommends that the Government adopt measures to ensure compliance with European rules on travel information and recommends a set of best practices for passenger rail operators when procuring third-party ticketing services. These include the fair and non discriminatory treatment of competing ticketing services, access to all relevant data, the availability of the full range of commercial solutions, the removal of restrictive contractual clauses and ensuring that technical requirements do not restrict competition.

Recommendations for a more open and competitive rail sector 

The study sets out recommendations addressed to the Government, IP, AMT and passenger rail operators, covering the regulatory framework, licensing, public service contracting, capacity allocation, rolling stock, energy, service facilities, human resources and ticketing. 

The AdC considers that implementing these measures will remove barriers that have a negative impact on competition and create the conditions for the liberalisation of the rail sector to deliver benefits to the economy, consumers and businesses through greater choice, more competitive prices, improved service quality and increased efficiency. 

The study was preceded by a public consultation held between 2 March and 7 April 2026. The AdC received a submission from AMT and 20 contributions from different sector stakeholders, including the rail infrastructure manager, operators and operators’ associations, independent ticketing service providers, a service facility manager, trade unions and works councils, and citizens.