CP – an attractive transport brand with a clear future focus

The Portuguese Government recently decided to lease the suburban railway services of Lisbon and Oporto to the private sector, according its Strategic Plan for Transports, approved by the Council of Ministers Resolution Nº 45/2011 of 13 October 2011. The Government intends to define the model for the new private sector, as well as defining a model for the privatisation/concession of the incumbent – predicted for 2013.

The ongoing liberalisation of the domestic market in Portugal

A series of structural reforms have been adapted in Portugal aimed at enhancing the financial stability of the country’s business sector of the State, which includes CP – Comboios de Portugal, E.P.E.

A number of measures have already been established, including a review of pricing and cuts of operating costs, including the significant reduction of salaries. All of these measures, and others, are aimed at ensuring the long-term financial sustainability of companies.

Rail network services have been stream – lined to improve the conditions of mobility, energy and environmental efficiency.

Listed in the programme of the Portuguese Government, the following three strands of work for rail are included:

• To promote public transport and improve the efficiency of operators in order to achieve positive operating results
• To restructure the debt of shipping companies
• To promote the clarification of the relationship model between the State and the various operators in the transport sector, exploiting synergies, defining and cele brating public service contracts in order to ensure transparency and commitment to guaranteeing productivity improvements.

In this context, a number of measures were defined, including:

• The review, modernisation and simplifica – tion of the regulatory framework and the model of governance and regulation of the sector
• The redefinition and prioritisation of investment in the transport sector given the context of financial and budget constraints the country is facing
• The promotion of public transport ensuring effective intermodality, particularly in Lisbon and Oporto
• The operational restructuring of the public transport enterprises in order to improve the relevant technical efficiency and achieve positive operating results
• The restructuring of the historical financial debt of the public transport enterprises
• The definition of public service obligations and celebrating the respective contracts
• A review and simplification of tariff systems and the adjustment of the respec – tive levels, notwithstanding the adoption of measures for the protection of citizens with lower incomes
• Downsizing and upgrading the national rail network, consistent with the Strategic Plan for Transports, considering the needs of passengers and freight
• Improved rail links to ports and logistics platforms, the feasibility of infrastructure development in European gauge in the corridors of international traffic, considering the availability of financial assistance under the National Strategic Framework.

Background

CP is a train operator organised into decentralised and autonomous business units for the transport of passengers by geographic areas of influence. The following divisions exist within CP:

• CP Lisbon
• CP Oporto
• CP Long Distance.

CP Lisbon

CP Lisbon provides a railway service in the metropolitan area of Lisbon and its conurbation – servicing an area of approximately 3,000km2 with 2.6 million inhabitants. CP Lisbon operates the following four lines:

• Sintra Line
• Azambuja Line
• Cascais Line
• Sado Line.

CP Lisbon operates 95 multiple electric units, makes approximately 766 journeys per day, serves 68 stations and employs 843 people. Moreover, it has 164 vending machines, 100 ticket offices in 44 stations, has controlled access gates in 21 stations, provides video surveillance at stations and on trains, and carries approximately 323,000 passengers per day.

Sintra Line

The Sintra line (in the tourist hub of the Serra de Sintra) serves 27 stations, carrying approximately 180,000 passengers per day on 307 trains.

Azambuja Line

The Azambuja Line serves 24 stations and carries approximately 44,000 passengers per day on 126 trains.

Cascais Line

The Cascais Line serves 17 stations, carries approximately 100,000 passengers per day on 279 trains, and is located near the Atlantic Ocean – popular with tourists.

Sado Line

The Sado Line serves 12 stations and carries approximately 11,000 passengers per day on 70 trains.

CP Oporto

CP Oporto operates 34 electric multiple units and five electric units, carrying approximately 21,000 passengers per day on 80 trains, on the following four lines in the Oporto area:

• Aveiro Line
• Braga Line
• Caíde Line
• Guimarães Line.

CP Long Distance

CP Long Distance operates (on a national level) approximately 994km of electrified track of Iberian gauge on the core network. CP Long Distance operates 120 international journeys per month to Madrid and to Hendaye which guarantee a link to Paris and another 120 international journeys to Vigo on the Minho Line. CP Long Distance also operates 620 tilting train journeys (‘Alfa Pendular’) linking Lisbon to Oporto and Faro to Oporto, 1,420 Intercity train journeys, 1,250 inter-regional journeys, 7,769 regional train journeys and 887 urban train journeys. CP Long Distance operates a fleet of:

• 10 ‘Alfa Pendular’ trains
• 18 locomotives ‘5600’ for international and intercity trains
• 3 Electric Multiple Units for intercity trains
• 45 Electric Multiple Units for inter-regional and regional trains
• 7 Allan ‘350’ (Single Diesel Unit) for interregional and regional trains
• 16 Diesel Triple Units ‘592’ for inter-regional and regional trains
• 2 Diesel Double Units ‘450’ for intercity trains
• 17 Diesel Double Units ‘450’ for interregional and regional trains
• 7 Diesel Double Units ‘9630’ for regional trains in narrow gauge
• 5 locomotives ‘1400’ for international trains and terminal shunting.

An opportunity to invest in Portugal

CP is an attractive Portuguese transport company/brand. In 2013, it is anticipated that a call for international rail operators to compete for the concession of suburban services in Lisbon and Oporto will be made, which will bring great opportunities for them to invest and expand their activities in Portugal.

About the author 

José Salomão Coelho Benoliel has been Chairman of CP since 2010. Prior to this position he was Vice President of CP between 2008 and 2010. Other terms of employment have included, among others, being CEO at General Maritime Management (Portugal) Lda, Metalúrgica Luso Italiana SA and Lusiberia, Transitárias, Lda.