Portugal Lisbon Rail: EU Probes CRRC’s Violet Line Tender

Introduction

The European Commission has initiated an in-depth investigation under the Foreign Subsidies Regulation (FSR) into potential market distortions related to a Portuguese public procurement procedure for light rail vehicles, specifically concerning the “violet” line project in Lisbon.

Foreign Subsidies Investigation

The European Commission is examining whether foreign state support may have provided CRRC, a Chinese state-owned rolling stock manufacturer, an unfair advantage in the tender process. The investigation focuses on the design, construction, and maintenance of a new light rail line in Lisbon. The Commission’s preliminary assessment indicated sufficient indications that Portugal CRRC Tangshan Rolling Stock Unipessoal Lda. may have received foreign subsidies that distorted the internal market, prompting the formal investigation.

Tender and Bidding Process

The Commission will assess whether the subsidies allowed CRRC to submit an unduly advantageous bid. The tender was launched in April 2025 by Metropolitano de Lisboa for the design, construction and maintenance of the new “violet” line. A consortium led by Mota-Engil, which includes subcontractors such as Portugal CRRC Tangshan Rolling Stock Unipessoal, submitted a notification to the Commission.

Potential Outcomes and Project Impact

Depending on the investigation’s findings, the Commission may accept commitments to remedy the distortion, prohibit the contract award, or issue a “no-objection” decision. The review is not expected to halt the violet line project entirely, but it could delay final contract decisions as the investigation proceeds. Any ruling that restricts the involvement of one consortium could lead to a re-evaluation of bids and extend the project timeline.

Regulatory Framework and Executive Statement

The Foreign Subsidies Regulation, in force since 2023, enables the Commission to investigate and address distortions caused by financial contributions from non-EU countries. Stéphane Séjourné, Executive Vice-President for Prosperity and Industrial Strategy, stated that the investigation underscores the importance of fair competition and protecting the Single Market against distortions.

Conclusion

The European Commission is investigating potential market distortions in a Portuguese light rail tender, focusing on CRRC’s bid for the Lisbon “violet” line project. The investigation, under the Foreign Subsidies Regulation, may affect the project’s timeline and contract decisions.

Company Summary

CRRC: A Chinese state-owned rolling stock manufacturer.

Mota-Engil: A consortium that includes Portugal CRRC Tangshan Rolling Stock Unipessoal.

Metropolitano de Lisboa: Launched the tender for the design, construction, and maintenance of the new “violet” line in April 2025.

Portugal CRRC Tangshan Rolling Stock Unipessoal Lda.: A company that may have received foreign subsidies.