Greece’s $490M Rail Upgrade Pressures Short Haul Flights

Greece has signed a contract with Hellenic Train to introduce 23 new electric trains built by Alstom, representing a total investment of €420 million ($490 million). The purchase will be fully funded by Hellenic Train, which is owned by Italy’s Ferrovie dello Stato, and all trains are expected to be delivered by the end of 2027.

This is Greece’s first large-scale rolling stock upgrade since the 2004 Athens Olympic Games.

Where the money will go

Of the total investment, €308 million ($360 million) will be used to procure the trains, while €112 million ($130 million) is allocated to maintenance depots, digital rail systems, and supporting infrastructure upgrades.

The new fleet will focus on Greece’s busiest corridors, including the Athens to Thessaloniki intercity route, which will receive 12 trains, and suburban services in Attica and Thessaloniki, which will receive the remaining 11 units.

Modernized trains

The new Coradia Stream trains are designed for speeds of up to 160 km/h and are expected to reduce energy consumption by 10 percent compared with older models.

Passenger-focused features include low-floor access for easier boarding, dedicated bicycle areas, LED lighting, and full integration with the European Train Control System.

Impact on travel and tourism

The upgrade is expected to shift more travelers from cars and short-haul flights to rail.

On the Athens to Thessaloniki route, rail is positioned to compete directly with low-cost airlines such as Ryanair, which typically offers fares between €30 and €80 ($35 and $93). Train tickets are projected to range from €15 to €25 ($17 and $29), with journey times of around 3 hours.

The investment also supports Greece’s tourism economy, which welcomes about 35 million visitors each year, by enabling better integration between trains, ferries, and local bus networks.

For a deeper look at how train booking is managed and sold, read our articles on rail fleet management and rail booking API integration.

Photo by Yorgos Triantafyllou on Unsplash