Hitachi to Develop Portugal’s Second Translator Tech for ETCS Trains on Legacy Lines

Why It Matters

The second STM diversifies the supply chain, reducing reliance on a single vendor and smoothing Portugal’s transition to interoperable European signalling standards, which is critical for network efficiency and cross‑border traffic.

Key Takeaways

• Hitachi wins contract to develop Portugal’s second STM translator
• STM bridges ETCS trains with legacy Convel system on 69% network
• New external module diversifies supply chain, reducing single‑vendor risk
• FRAND licensing will enable cross‑border interoperability across Europe
• Deployment targeted for late 2026, supporting CP passenger and freight fleets

Pulse Analysis

Portugal’s rail network is in the midst of a major digital transformation, moving from its home‑grown Convel automatic train protection system to the EU‑wide European Train Control System (ETCS) Level 2. While new rolling stock arrives pre‑equipped with ETCS, roughly two‑thirds of the 2,500‑kilometre track remains on legacy signalling, creating a compatibility gap that could stall service expansion. The Specific Transmission Module (STM) acts as a translator, allowing ETCS‑compatible trains to safely operate on Convel lines, thereby preserving network capacity during the migration to the European Rail Traffic Management System (ERTMS).

Hitachi Rail’s latest contract to develop a second STM marks a strategic shift toward a more resilient supply ecosystem. Unlike the first STM, which was an integrated solution, the new offering is an external module built collaboratively by engineers in Portugal, Sweden and Italy. By releasing the technology under fair, reasonable and non‑discriminatory (FRAND) licensing, Hitachi ensures that other manufacturers can adopt the standard, fostering competition and lowering costs for rail operators. This approach also aligns with EU regulations aimed at promoting interoperability across national borders, a key factor for freight corridors and passenger services that traverse multiple countries.

The broader market impact extends beyond Portugal. STM development is costly and highly specialised, limiting the pool of qualified suppliers. Introducing a second vendor mitigates the risk of a single‑point failure and sets a precedent for other nations facing similar legacy‑to‑ETCS transitions. With certification expected by the end of 2026 and rollout to CP’s passenger fleet and freight operators such as Medway and Alpha Trains, the project could accelerate the overall European shift to standardized signalling, unlocking smoother cross‑border operations and unlocking new revenue streams for rail companies.