€16.7 million for a modernised rail link to Setúbal port

Portugal has earmarked 16.7 million euros for a modernisation of the rail link to the port of Setúbal in the Lisbon area. This should lead to a capacity boost by electrifying the railways and enabling 750-metre trains.
The expectation is that the upgraded railway will increase yearly train movements to 2,900 per year. Infrastructure manager Infraestruturas de Portugal says that it hopes to achieve that by “increasing the line’s capacity, improving operating conditions, reliability and safety.”

It should also contribute to “strengthening the competitiveness of the Port of Setúbal, increasing the efficiency of rail freight transport”, write Portuguese media citing Infraestruturas de Portugal.

The 16.7 million euro investment, for which a contract has been awarded to a ASCH/Cimontubo consortium, is part of a larger investment of 40 million euros. This funding will go to the broader international rail corridor that connects the ports of Setúbal and Sines to the hinterland.

Who will profit?

The main beneficiaries of the investment are mining company Somincor, steel companies Megasa and Lusosider, and the automotive manufacturer Autoeuropa. These are the primary users of the terminals in the Setúbal port.

Primarily, the rail investment is “about making this port, this region, and the companies that operate within the Port of Setúbal’s sphere of influence more functional”, commented infrastructure minister Miguel Pinto Luz.

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