Sines, Portugal is poised to attract €25 billion in investment over the next five years, driven by a unique combination of strategic advantages and a growing focus on energy, industry, and digital sectors. According to Aicep Global Parques, the investment pipeline includes 30 projects, spearheaded by 53 companies and consortia from 10 countries, with 13 designated as Projects of National Interest (PIN).
The coastal city offers a compelling proposition for international businesses: proximity to major international shipping routes, a deep-water port, and substantial industrial land availability. This confluence of factors is attracting significant capital and reshaping the region’s economic landscape. The anticipated investments are expected to create 4,577 direct jobs and 6,903 temporary positions.
“Sines brings together a set of factors that are incredibly demanding to locate simultaneously in Europe,” said Isabel Cardoso, CEO of Aicep Global Parques (AGP), the entity managing the 3306 hectares of the Sines Industrial and Logistics Zone (ZILS). “Its geo-strategic location on the Atlantic facade, close to major international shipping routes, is a key advantage. The Port of Sines, a highly competitive deep-water port prepared for large logistical and energy flows, likewise stands out. Add to this the availability of industrial land on a large scale, access to energy infrastructure and industrial water, as well as particularly favorable conditions for the development of projects linked to the energy transition, industry and the digital economy.”
Among the largest investments, Spanish energy company Repsol is investing over €2 billion in expanding its industrial unit through the Alba, NextGen, and H2 projects. This expansion will significantly increase the complex’s capacity and solidify its position as one of Europe’s most advanced industrial facilities. Galp is also pursuing two projects focused on green hydrogen production, H2Park and HVO. The latter, in partnership with Japan’s Mitsui, will produce hydrogenated vegetable oil and sustainable aviation fuel, with an annual capacity of 270 tons, utilizing refinery residues and locally produced green hydrogen.
The influx of investment comes as foreign direct investment in Portugal has more than doubled in recent decades, exceeding €200 billion – approximately 70% of the country’s GDP, according to data from the Bank of Portugal. A significant portion of this investment seeks locations with industrial scale, logistical infrastructure, and competitive energy costs – qualities Sines demonstrably provides.
Chinese battery manufacturer Calb, a top 10 global producer of lithium batteries for electric vehicles, is establishing a 15 GWh industrial unit, representing an investment exceeding €2 billion. Production will primarily target export to Northern Europe, focusing on batteries for electric mobility and energy storage systems. The Dutch-Danish-Portuguese consortium Madoqua aims to produce green hydrogen and ammonia for both export and domestic consumption. Swedish company Stegra plans to invest over €3 billion in a unit to produce green steel based on renewable hydrogen.
Further bolstering the region’s digital infrastructure, Start Campus is developing and operating the Sines Data Campus, a 1.2 GW data center in Portugal, creating one of the largest and most sustainable data ecosystems in Europe, representing a €9 billion investment. Irish company EllaLink has also chosen Sines to develop its submarine cable network, offering low-latency solutions between Brazil and Portugal. Portugal and Spain recently jointly submitted a bid to host a European Gigafactory for Artificial Intelligence, an €8 billion project aimed at strengthening the Iberian Peninsula’s technological and digital capabilities.
“These figures reflect, above all, the strong international interest that Sines’ industrial ecosystem is currently generating,” Cardoso added.
Port of Sines as an Investment Anchor
The Port of Sines, with its 28-meter depth, is central to many of these investments and remains a key hub for national imports and exports. Handling over 50% of Portugal’s cargo (42 million tons of goods), the port can accommodate all types of vessels, ensuring production has direct access to international markets. It is also crucial for the country’s energy capacity, with 96% of the natural gas consumed in Portugal entering through the terminal operated by REN, and receiving virtually all petroleum products for the Galp refinery, which supplies 90% of the country’s fuel.
“We have more than 20 connections to international ports and, interaction with the whole world,” said Pedro do Ó Ramos, President of the Board of Directors of the Ports of Sines and Algarve (APS), to Jornal Económico. The Port of Sines currently operates 65 container trains per week, and the construction of a fresh rail link to Spain, reducing travel time by 3 hours and 30 minutes with 750-meter-long trains, is nearing completion. The port also features digital processes through the Single Logistics Window (JUL) to simplify and accelerate port operations, with operating permits granted an average of 2.5 days before vessel arrival, allowing for greater logistical predictability. “The maritime transport industry is actively seeking new fuels to reduce its environmental footprint and achieve decarbonization goals. To respond to this need, Sines aims to be a port capable of supplying these new fuels to ships and becoming part of the so-called ‘Green Corridors’,” explained the manager. Ramos also revealed plans to invest €10 million in the construction of 50 to 70 new homes on land owned by the port authority.
Sines is home to 13,000 residents, with an additional 6,000 commuting to work daily. According to data from the National Statistics Institute (INE), the city is among the municipalities with the highest average salaries in the country – €2,180, an increase of almost 23% in a decade. However, Sines Mayor Álvaro Beijinha noted that the cost of living in Sines has been increasing “brutally,” with rent for a two-bedroom apartment exceeding €2,000 per month. He estimates that over €1 billion in investment will be needed to build 2,000 to 3,000 homes over the next five to ten years, and both companies and the municipality have requested the creation of a dedicated task force for the territory. “We have an increasingly high cost of living, whether in housing or restaurants,” said Beijinha. Completing the direct highway connection to the A2, expected by the end of the decade, and the passenger rail line are also crucial to managing this growth.
