Horizontal bundling of infrastructure managers: The case of Portugal Infrastructure Company (roads and railways)

- This paper address a unique and relevant experience: the case of the Portuguese merger of its road and railway infrastructures companies.
- Portugal needed to optimize the use of its road and railway network, and also to increase the efficiency of the large investments made.
- This paper describes the merger, its strategic and operational objectives, and also the changes in the management.
- Policy implications are relevant, as mergers in transport sector infrastructures are not very common, particularly between different sectors.

This paper presents a rare event in transport infrastructures: the case of the Portuguese merger of its road and railway infrastructures companies. There is little evidence internationally of mergers in transport companies, and most of it is focusses on mergers in the same sector. This merger was based on the need for Portugal to optimize the use of its road and railway network, and also to increase the efficiency of the large investments made. The new company no longer positions itself as an investor and constructor of infrastructures, but is rather as a provider of multimodal mobility. This merger created scope for a better service, increased revenues, the reduction of costs, all through synergies which allow for a more financially-sustainable operator. This paper describes the merger, its strategic and operational objectives, and also the changes in the management. This paper presents some policy implications, as mergers in transport sector infrastructures are not very common, particularly between different sectors.