Greek railway in transition (again) – How plans for reunification of the train infrastructure companies will roll out

GAIAOSE is moving towards activity separation through the railroad unification plan. According to sources very close to the matter, it is likely to divest itself of the management of its rolling stock, which it has owned since its establishment.

The trains that are leased to operators, primarily by Hellenic Train, are intended to transition to the new railway scheme.

Following this, the real estate segment will remain within GAIAOSE, meaning using the company’s immovable railway property. Additionally, according to the same sources, the goal is to initiate the future utilization of the large railway stations in Athens and Thessaloniki.

This means that these stations, which currently do not have an appealing appearance and do not resemble central railway stations, will undergo a competition process to transform them into modern terminals, as is happening throughout Europe.

The competitions for Fili and Gkono are starting.

However, in 2024, preparations are underway for the competition for the properties in Gkono and Fili. Concerning the extensive property in the former Gkono military camp in Thessaloniki, the competition is scheduled for the summer of 2024. As mentioned at the 1st Growthfund Summit by the Chairman of the Board of Directors of GAIAOSE, Mr Konstantinos Kesentes, the decision to mature the project through PPF has ensured a pace that would otherwise be an elusive dream.

The investment amount for the 672-acre property, depending on the mix of logistics and processing uses that will be selected, is estimated to range from 120 to 260 million euros. Based on the examined scenarios, the internal rate of return on equity is estimated at around 10%, and the project’s IRR stands at 6-7%. Benefits exceeding 325 million euros in terms of Gross Value Added are expected, with 30% of them being immediate.

Fili

The relocation of the “operational centre” of the 391 carriers in Attica from Eleonas to Fili, combined with the activation of the investment by EYDAP VIPE-Goldair in Thriasio I in the coming months, will form a conceptual logistics triangle in Attica, with the main gateway being the port of Piraeus. The development of the long-awaited freight centre in Thriasio has a budget of 220 million euros, potentially exceeding 300 million.

The project that will relieve the already congested Kifisos River from approximately 6,500 trucks is maturing under the management of PPF from TAIPED. The transportation cluster in Fili, which will be developed on a 447-acre area in the “Spilies” region, has already been licensed as an industrial park. The area’s connectivity to the railway network, the Attiki Odos, and the Aigaleo Peripheral Road is considered to create an attractive combination.

The procedures are progressing rapidly, aiming to identify, through the concession competition within the next six months, the investor who will undertake the project. The relocation is expected to take place by the end of 2025. Currently, PPF advisors are shaping the business plan to conduct the necessary assessment, which will determine the final terms of the competition.

For the establishment of transport agencies, approximately 80 acres will be needed, while on the remaining area, the investor can develop transportation, logistics, commercial, and mixed-use activities, as well as warehouses up to a height of 23 meters. Meanwhile, the relocation of the companies will be subsidized with 20 million euros from the Recovery Fund.

The total investment is estimated to amount to 250 million euros. At its full development, the economic activity is projected to reach 1 billion euros.