Portugal returns to train manufacturing with biggest rail investment in decades

Portugal is set to manufacture passenger trains again for the first time in around 25 years after construction officially began on a new Alstom factory in Matosinhos, marking what the government describes as the country’s largest-ever investment in rolling stock.

The €28.6 million manufacturing facility, being built by Portuguese construction group DST alongside CP’s maintenance depot in Guifões, will assemble 81 of the 153 new trains ordered by state rail operator CP. The remaining units will be produced at Alstom’s facilities in Spain.

The 20,000-square-metre plant is expected to be completed in 2028, with the first trains rolling off the production line in 2029. Once operational, it will create around 300 direct jobs and an estimated 1,000 indirect jobs, strengthening Portugal’s industrial base while helping to rebuild domestic expertise in railway manufacturing.

The project forms part of CP’s landmark €1.064 billion contract with Alstom for 153 new suburban and regional trains – the largest rolling stock investment ever made in Portugal. The three-carriage electric trains will operate on commuter networks serving Lisbon, Porto and Cascais, offering step-free access, Wi-Fi, spaces for bicycles and wheelchairs, and significantly improved passenger comfort.

Speaking at the groundbreaking ceremony, Prime Minister Luís Montenegro described investment in rail as both “strategic and structural” for Portugal, arguing that modern railways are essential for improving mobility, supporting economic growth and helping the country meet its environmental objectives.

He also highlighted wider investments including the high-speed rail network, the new Lisbon airport rail connection and continued modernisation of the national rail system.

The new factory is also expected to become part of Alstom’s wider European manufacturing network, positioning Portugal as a producer rather than solely a buyer of railway equipment.

Beyond supplying CP’s current order, the investment is seen as laying the foundations for a long-term railway manufacturing sector capable of supporting future domestic and export opportunities.

For Portugal, the significance extends beyond the trains themselves. After more than two decades without assembling new passenger rolling stock, the country is once again developing the industrial capacity, skilled workforce and supply chain needed to manufacture trains on home soil – a milestone that reflects both renewed confidence in the rail sector and the government’s ambition to place sustainable transport at the centre of Portugal’s future economic development.

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