Italy Backs Rail Renaissance in Greece with €360 Million Investment
Greece’s railway sector is set for a major revival following the signing of a landmark investment deal with Italy. Italian state-owned railway giant Ferrovie dello Stato (FS), parent company of Hellenic Train, has pledged a substantial €360 million to modernise Greece’s ageing passenger rail services.
This announcement arrives at a crucial moment for the country, still grappling with the aftermath of the 2023 Tempe rail disaster that left 57 dead and shook public confidence in rail transport.
The agreement, formalised with the Greek Ministry of Infrastructure and Transport, outlines a clear commitment to upgrade both rolling stock and support facilities. This long-awaited deal forms part of a broader effort to rebuild trust and bring Greek railways up to modern European standards.
New Trains and Depots to Modernise Passenger Transport
At the heart of FS’s pledge is the procurement of 23 state-of-the-art trains, a move expected to transform passenger experience across the country. The order includes eight high-speed intercity trains designed for Greece’s busiest long-distance routes, alongside 15 suburban units aimed at enhancing urban and commuter rail services.
Supporting these new trains will be the development of modern depots, essential for maintaining operational reliability and safety. According to FS, these facilities will feature cutting-edge technology and equipment, ensuring the long-term sustainability of the fleet.
“Our commitment goes beyond purchasing new trains. We aim to ensure their longevity and reliability through modern infrastructure and maintenance hubs,” an FS spokesperson stated.
Binding Timelines and Government Oversight
The investment is not without accountability. The new agreement between FS and the Greek government will include binding contractual clauses, setting out strict project timelines and deliverables. This measure aims to prevent delays and ensure that the benefits reach passengers without unnecessary setbacks.
Transport Minister Christos Staikouras stressed the importance of transparency and adherence to schedules: “This agreement marks a fresh start for Greek railways, one built on clear obligations and mutual accountability.”
Greece’s Broader Rail Investment Strategy
This Italian-backed initiative complements Greece’s wider rail investment strategy, which includes a fresh round of public tenders valued at over €400 million. These tenders target critical infrastructure upgrades such as signalling, track modernisation, and digital control systems.
Staikouras commented on the synergy between the two efforts: “Rolling stock and infrastructure must advance hand in hand. Our comprehensive strategy ensures both move forward together, delivering a seamless experience for passengers and freight operators alike.”
Strengthening Greece-Italy Economic Ties
The railway investment formed part of a larger suite of bilateral agreements announced in Rome by Greek Prime Minister Kyriakos Mitsotakis and Italian counterpart Giorgia Meloni. Speaking at a joint press conference, Mitsotakis emphasised the growing strategic partnership between the two Mediterranean nations.
“The railway deal signals a reboot of our cooperation in transport infrastructure. Greece and Italy are strengthening their economic ties across multiple sectors,” Mitsotakis declared.
Powering Up Cross-Border Energy Links
Alongside the railway announcement, Mitsotakis and Meloni also unveiled plans to triple the capacity of the electricity interconnector between their countries. This project, led by Italy’s Terna and Greece’s Independent Power Transmission Operator (IPTO), carries an estimated price tag of €1.9 billion.
Both grid operators have been tasked with expediting the development of this critical infrastructure. The project will enhance energy security and position Greece as a key electricity exporter in southeastern Europe.
“The direction we are giving to Terna and IPTO is to move forward with the project as quickly as possible,” Mitsotakis stated.
A €2 Billion Undersea Connection Sealed
Sealing their energy partnership, Terna and IPTO signed a nearly €2 billion project finance agreement for a new undersea electricity interconnector.
This high-capacity link will not only improve grid resilience but also boost renewable energy flows between the two countries, aligning with the EU’s green transition objectives.
Broader European Cooperation in Focus
The Rome meeting also highlighted joint efforts to tackle illegal migration. Both leaders praised the effectiveness of their border management cooperation, citing significant progress in dismantling human smuggling networks.
Addressing the ongoing conflict in Ukraine, Mitsotakis reaffirmed Greece and Italy’s shared stance. He called for a united European push for an unconditional 30-day ceasefire, underlining the need for diplomatic solutions to end the humanitarian crisis.
A New Era for Greek Railways
The railway deal with FS signals more than just financial investment. It marks the beginning of a long-overdue transformation aimed at restoring public confidence, improving safety, and delivering a world-class passenger experience. With clear timelines, modern rolling stock, and expanded maintenance infrastructure, Greece’s rail sector is on track for a brighter future.
“We are committed to making Greek railways safer, faster, and more reliable. This is just the beginning of a new era for our country’s transport network,” Staikouras concluded.
