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Greece Forces Hellenic Train To Invest €420M In Safety Upgrades After Deadly Larissa Crash

Greece Forces Hellenic Train To Invest €420M In Safety Upgrades After Deadly Larissa Crash
A view of the site of a crash, where two trains collided, near the city of Larissa, Greece, March 1, 2023. REUTERS/Alexandros Avramidis/File Photo

Greece has compelled Hellenic Train to invest €420 million in new trains, maintenance and digital upgrades after the fatal 2023 Larissa collision that killed 57 people. Parliament amended the 2017 contract to include a break clause allowing termination if trains are not in service by 2027. The package includes a €308 million Alstom order for electric trains and €100 million for depots and maintenance infrastructure. A trial related to the crash is expected to begin in March.

Greece has ordered Italian-owned operator Hellenic Train to invest €420 million in new rolling stock, maintenance facilities and digital systems to address safety failures exposed by the country’s deadliest rail disaster.

Contract Changes And A Firm Deadline

Parliament approved amendments to the 2017 state contract with Hellenic Train that set out the new investment obligations and introduce a break clause. If the new trains are not delivered and placed into service by 2027, the state may terminate the agreement.

The Larissa Collision

On February 28, 2023, a passenger service from Athens and a freight train from Thessaloniki collided head-on near Larissa, killing 57 people, most of them students. Investigators and independent experts engaged by victims’ families have identified safety shortcomings in the rail system.

What The €420 Million Covers

Hellenic Train had already announced a €308 million order with Alstom for new electric trains. The company says the units will include systems enabling remote communication between drivers and traffic controllers and the remote application of brakes.

The transport ministry said the remainder—about €100 million—will be directed to maintenance infrastructure, depots and digital upgrades aimed at improving operational safety and reliability.

Background On The Safety System

A European Union co-funded project to install the safety system was launched in 2014 but repeatedly slipped. EU prosecutors have since brought malpractice allegations against several Greek officials in connection with that contract.

Legal Proceedings And Company Response

Following a judicial investigation, a trial over the Larissa crash is expected to begin in March. Hellenic Train says it provided all required data and remains committed to cooperating with the inquiry. Alexandra Kassimi, a company spokesperson, told Reuters: "We fully trust the legal proceedings due to start later this year."

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