The Greek government has decided to oblige railway operator Hellenic Train, owned by Italian group Ferrovie dello Stato, to invest EUR 420 million in new rolling stock and maintenance infrastructure as part of measures to improve railway safety, almost three years after the worst railway accident in the country’s recent history. The information was reported by Reuters.
According to the source cited, the obligations are included in a set of amendments to the 2017 public service contract between the Greek state and Hellenic Train, amendments approved by the Greek Parliament.
The Ministry of Transport in Athens said that, for the first time, the contract will contain a termination clause, which allows the state to terminate it if the new trains are not delivered and put into service by 2027.
Larissa, the turning point for the Greek railway system
The measures come in the wake of the train accident on February 28, 2023, when a passenger train traveling between Athens and Thessaloniki collided head-on with a freight train near the town of Larissa.
The collision killed 57 people, most of them students. Subsequent investigations, including those carried out by experts hired by the victims’ families, revealed major safety deficiencies in the Greek railway system.
A criminal trial related to the accident is expected to begin in March, according to Reuters, and Hellenic Train has stated that it has provided all the requested data and will continue to cooperate with the judicial authorities.
Investments in new trains and maintenance
Part of the new contractual obligations had already been announced by Hellenic Train in December, when the company confirmed a EUR 308 million investment for the purchase of new electric trains from Alstom.
The operator described the investment as “a decisive step towards a safer, more modern and passenger-oriented railway system.”
The new trains will be equipped with systems that enable remote communication between drivers and dispatchers, as well as remote control of brakes.
A project co-financed by the European Union to implement these systems was launched in 2014 but has been repeatedly delayed. European prosecutors have indicted several Greek officials for irregularities related to this contract.
Separately, the Ministry of Transport has stated that approximately EUR 100 million of the investment package will be directed towards maintenance infrastructure, depots and digital systems.
Contractual and judicial pressure
The introduction of the termination clause represents a significant change in the contractual relationship between the Greek state and the railway operator, in a context marked by public pressure and ongoing judicial investigations. According to Reuters, Hellenic Train has stated that it has “full confidence in the judicial proceedings” that are due to begin later this year.
Greece and Italy: railway investments beyond the current crisis
The measures now imposed on Hellenic Train are part of a broader context of railway cooperation between Greece and Italy.
In 2025, the two countries agreed on a railway investment agreement worth EUR 760 million, aimed at modernizing infrastructure, rolling stock, and maintenance systems in Greece.
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