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CCCCONTENTSONTENTSONTENTSONTENTS1. Message by the Board of Directors 4

2. Corporate Governance 9

3. Analysis of the Economic Setting 26

4. REFER Activities in 2008 30

4.1. Infrastructure Management 33

4.1.1. Conservation and Maintenance 38

4.1.2. Operation 42

4.2. Investments 47

4.3. Complementary activities 60

5. Environment 62

6. Property Assets 65

7. Safety 68

8. Human Resources 71

9. Financing Debt Management 74

10. REFER Shareholdings 79

11. Results, Asset Structure and Indicators 83

12. Final Note 91

13. Outlook 93

14. Financial Statements and Annexes 95

15. Annexes 156

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1.The current Board of Directors first mandate ended in 2008. Consequently, this is a suitable time toassess the company's activities during the previous year and to highlight some priorities for 2009.

In 2008, the company successfully completed another stage in its mission of providing the country

with a competitive transport infrastructure by managing and developing an efficient and safe railway

network in an environmentally friendly manner despite Portugals intense budget restrictions.

Despite REFERs short existence as a rail infrastructure management company, it has inherited an

important historical legacy. In November 2008, the company celebrated the Vouga Lines 100 th year

by organising a train trip between Espinho and Oliveira de Azemis, which commemorated theinaugural trip on this rail line by King D. Manuel II in 1908.

The Railway Sectors Strategic Guidelines presented by the government in 2006, and included in the

general transport policy, comprise the framework for developing REFER's activities and establish a

number of Strategic Objectives for the sector:

Improve accessibility and mobility in order to increase the railways transport market share;

Guarantee suitable standards of safety, interoperability and environmental sustainability;

Evolve to a sustainable financing model which also promotes efficiency;

Promote research, development and innovation.

The Strategic Objectives set forth by REFER in its various prospects are clearly part of the objectives

stipulated for the sector.

In order to meet these objectives, in 2008 REFER had 3,556 employees whose work and dedication

revealed the company's commitment to fulfil certain quality levels and operational and financial

performance. REFER is thus working toward a sustainable model in compliance with the major

guidelines comprising the Program Contract proposal and the Strategic Guidelines for the Railway

Sector.

REFER has carried out its activities in accordance with quality and efficiency standards and in a

manner to guarantee good infrastructure availability rates, to provide stable schedules and to ensure

service quality to operators. To meet this goal, in recent years REFER has been improving service

levels to operators, whereby it has achieved a 98% punctuality rate in Suburban trains and 97% in

Regional and Freight trains. Nevertheless, in 2008 Pendular and Intercity trains inverted this trend

essentially due to the poor track condition of some sections. However, plans have already been

made for major rehabilitation works.

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At the end of 2008, 56% of the whole national railway track was equipped with sophisticated Speed

Control Systems, Convel and ATS (advanced technology systems), in addition to another safety

system, the Ground Train Radio, along 55% of the whole track. The company thus maintained its

efforts initiated in previous years to provide operators with an infrastructure equipped with systems

ensuring enhanced safety and reliability.

In 2008, infrastructure operators continued to slightly increase their utilisation, in keeping with growth

previous years, reaching 41.284 million train kilometres (TK), a 2% increase over 2007. However,

through the liberalisation of freight transport, two new operators emerged TAKARGO and COMSA

RAIL. The former began operations in the national rail network with 37,000 train kilometres, whereas

the latter requested to reserve slots for testing and training in the Lisbon Vilar Formoso axis.

Note that the first private freight rail operator TAKARGO, of the MOTA-ENGIL group began

operating on 25 September 2008. This occasion is not only a milestone in Portugals railway system,

but also allows REFER to foresee increased utilisation of its infrastructure. Currently, TAKARGO has two

1400 locomotives, which allows it to make a daily run with a train of ballast hopper cars from the

Torre da Gadanha Station to the work front at Barreiro - Pinhal Novo. TAKARGO is training train drivers

at the Poceiro Setil section, and a yard for flatbed container wagons is in the final stage of

approval. COMSA RAIL Transport is a company held by the COMSA Group operating in the transport

and logistics market. Currently, it is operating in Spain and Poland and is expected to begin doing

business in Portugal in the near future.

In 2008, REFERs rail safety and accident prevention measures to implement the Plan to Eliminate orReclassify Level Crossings included 57 actions which eliminated 40 LC and reclassified 17 LC. The

companys efforts resulted in 20 more actions in 2008 than in 2007. At the end of 2008, the universe

of lines with railway operations included 1,229 level crossings, for an average density of 0.433 level

crossings per kilometre. The ongoing policy to eliminated level crossings, and thus improve their

safety, has contributed to an ongoing accident reduction. In 2008, there were 55 accidents, 11 less

than in the previous year and 68 less than in 2001. In 2009, the company is forecasting to eliminate

78 level crossings and to reclassify 67, and these measures are expected to reduce the accident

rate by 9%.

As for investments in long duration infrastructures, REFER maintained its modernisation and

development projects in the national railway network. Among the said projects, the following are

highlighted:

Reopening of the Rossio Tunnel in February 2008, after nearly 4 years of recovery works. The

Rossio Tunnel rehabilitation consisted of a structural intervention by building a closed

concrete section inside the tunnel, in a length of approximately 1.180 km, and by building a

concrete platform with embedded track along the whole length (2.613 km), which will

provide access to road vehicles if necessary, and also consisting of a reinforcementmember to endow the tunnel with structural stability.

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In March 2008, REFER completed the works contract for the Rail Link to the National Ironworks,

thus meeting the schedule laid out during the respective consignment, representing an

overall investment of 15 million euros. The new branch line now made available by REFER is

3,788 meters long and stems from a 795-metre section, also built for this project, called V

line of the Coina Station. After the operation start-up of the Lisbon Operation Command Centre (OCC) in November

2007, and fulfilling the planned schedule, the Porto OCC

began operating in April 2008. Housed in a vanguard

building next to the Contumil Station, the Porto OCC will

command/control the lines of Minho, Guimares, Leixes,

Douro and North [Mealhada (inclusive) to Porto

Campanh] and the Braga Branch Line.

The new train station and rail tunnel began operating in May 2008 in the city of Espinho. Thefirst train to cross this new infrastructure was the Alfa Pendular from Braga going to Lisbon. The

second track opened to traffic on May 5, after which train traffic continued normally along

the two operation tracks. The intervention also included building a new passenger building

accessed at street level by two entrances linked by an atrium, from which access is provided

through traditional and mechanical means directly to the central passenger platform. The

works began in 2004 and represented an investment of 60 million euros.

In March 2008, the company awarded the works contract called Alentejo Line - Barreiro -

Pinhal Novo Section (excl.) - Electrification and Modernisation of Stations and Stops.

Completion of this works contract will reduce trip times and improve service quality,

particularly by linking the rail and river infrastructures, improving comfort at stations and the

respective accesses.

In November 2008, works were completed at the Cacia Multimodal Terminal to install the

following systems, which will be commanded and supervised by the Porto Operation

Command Centre. The Cacia Multimodal Terminal construction project emerged

consequent to the rail link to the Porto of Aveiro and which aims mainly to redistribute cargo

coming from and going to the Port of Aveiro. The main objective of this project is to build a

railway operation system whereby all trains coming from/going to the Port of Aveiro originate

at the Cacia Multimodal Terminal. This terminal will, not only receive/forward the respective

merchandise, but also regulate rail traffic and route it to the North Line and Beira Alta Line,

whereby the latter is the European axis linking to Spain.

REFERs investment during 2008 reached 398 million euros, which implied a 76% realisation rate

compared with what had been planned (522.9 million euros). Of this value, 392 million euros were

invested on Long Duration Infrastructures (99% of total investment) and 5.6 million euros wereinvested on Management Support Structures (1% of the total investment). Investments in 2008 were

Espinho

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financed by EU Fund allocations, Protocols signed between REFER and various entities and reliance

on other financing sources.

In 2008, the company fulfilled its environmental objectives regarding Noise and the Conservation of

Nature and Biodiversity. It was also a year in which the company provided greater support to its

maintenance activities and intensified investment activities. Environmental evaluation is crucial, not

only because its one of the means of implementing the principle of prevention (stipulated in the

Environmental Policy), but also since it is one of the critical requirements for making the necessary

investments to modernise the railway infrastructure.

In 2008, the company submitted 90% of the Strategic Noise Charts (SNC), part of the first stage, to

the Portuguese Environment Agency for the Cascais Line, Sintra Line, Cintura Line and North Line

(Lisbon/Azambuja section). Overall, the charts cover 102 km of rail track. About 11 km are still to be

completed covering the section of Porto S. Bento/Ermesinde. Note that work on this SNC began in

2008, as soon as the respective cartographic survey was performed.

As for Fauna and Flora, we point out the Ecological Rehabilitation Project for a Saltworks in Alccer do

Sal. The Alccer do Sal saltworks was acquired in June 2008, followed by the topographic survey

necessary for preparing the intervention program. The first version of the intervention program was

submitted to REFER in November 2008.

The Fixed Assets Management Model was maintained in order to prepare procedures to apply the

new fixed assets management structure to the maintenance activities.

Expanding the initial project essentially aims to standardise the concept of assets and their

application by creating a single language within REFER to be used by the various players; to monitor

the fixed assets in an integrated manner, aligning the financial and technical outlook under a model

understood by everyone; to facilitate maintenance management decisions in order to choose the

best option between investing and asset maintenance, and in order to compare costs per asset

within an internal and external benchmarking perspective.

Lastly, in financial terms, we highlight the implementation of the Euro Medium Term Notes Program of

an overall amount of 1.5 billion euros. This instrument consists of a number of contractual documentssigned between the company and financial intermediaries to create a single legal body

characterising the most relevant aspects of any issuance of bonds either through public or private

issues, with or without state guarantee. As such, REFER gains greater flexibility in the capital

marketsand is able to take an opportunistic approach by occasionally using market conditions which

offer greater financial advantages. Setting up a program of this type does not, on its own, imply any

commitment to current or future debt. The commitment to debt exists only after a concrete bond

issue.

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2.MMMMISSIONISSIONISSIONISSION,,,,OOOOBJECTIVES ANDBJECTIVES ANDBJECTIVES ANDBJECTIVES AND PPPPOLICIESOLICIESOLICIESOLICIES

According to Decree-Law 104/97, of April 29, the main goal of REFER E.P. is to provide a public

service of managing the national railway network. The companys goals also include:

i. Construction, installation and renovation of the railway infrastructures which includes, in

particular, the respective studies, planning and development;

ii. Circulation command and control and promoting, coordinating and developing all

activities related with railway infrastructures;

iii. Complementary or subsidiary activities to the main goal.

In 2008, REFERs statutes were published in Decree-Law 141/2008, of July 22, and came into force on

23 July 2008. This Decree-Law alters the statute that created the National Railway Network, REFER,

E.P., and the respective statutes, in order to adapt them to the new legal system of the state's

corporate sector.

Therefore, the National Rail Network, REFER, E. P., is transformed into a public corporate entity called

Rede Ferroviria Nacional, REFER, E. P. E., which includes an alteration to the structure of its governing

bodies. The competences of the former Audit Committee are now shared by two new governing

bodies: Audit Committee and Chartered Accountant.At the same time, adjustments were made to REFERs competences applicable to rail infrastructure

maintenance for the 25 de Abril Bridge.

Status and activities of REFER, E. P. E.:

REFER, E. P. E., is a public corporate entity with legal personality, endowed with administrative

and financial autonomy and its own assets, and shall be subject to supervision by the ministers

responsible for the finance and transport sectors.

In summary, REFER has the following mission:

PPPPROVIDE A COMPETITIVEROVIDE A COMPETITIVEROVIDE A COMPETITIVEROVIDE A COMPETITIVE TRANSPORT INFRASTRUCTRANSPORT INFRASTRUCTRANSPORT INFRASTRUCTRANSPORT INFRASTRUCTURE BY MANAGING ANDTURE BY MANAGING ANDTURE BY MANAGING ANDTURE BY MANAGING AND DEVELOPING AN EFFICIDEVELOPING AN EFFICIDEVELOPING AN EFFICIDEVELOPING AN EFFICIENT AND SAFEENT AND SAFEENT AND SAFEENT AND SAFE

RAILWAY NETWORK THATRAILWAY NETWORK THATRAILWAY NETWORK THATRAILWAY NETWORK THAT IS ENVIRONMENTALLY FIS ENVIRONMENTALLY FIS ENVIRONMENTALLY FIS ENVIRONMENTALLY FRIENDLYRIENDLYRIENDLYRIENDLY."."."."

And its vision:

REFERREFERREFERREFER WILLWILLWILLWILL BE AN EXEMPLARYBE AN EXEMPLARYBE AN EXEMPLARYBE AN EXEMPLARYEEEEUROPEAN RAILWAY INFRUROPEAN RAILWAY INFRUROPEAN RAILWAY INFRUROPEAN RAILWAY INFRASTRUCTURE MANAGERASTRUCTURE MANAGERASTRUCTURE MANAGERASTRUCTURE MANAGER

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To carry out its activities, REFER split its organisation to suit the two aspects of its mission, but always

keeping in mind that its main goal is to provide a public infrastructure management service.

However, the whole corporate and administrative structure serves each activity in the same manner.

In addition to the activities covered by its missions infrastructure management and investment

management REFER, in performing its normal operations, also carries out other complementaryactivities.

According to its corporate purpose, REFER carries out two complementary business activities:

Infrastructure Management and OperationInfrastructure Management and OperationInfrastructure Management and OperationInfrastructure Management and Operation, as a public service provider which manages the

whole National Railway Network infrastructure, which includes circulation command and

control and the promotion, coordination and development of all activities related with the

railway infrastructure.

InvestmentInvestmentInvestmentInvestment to buildto buildto buildto build,,,, install and renew the railway infrastructure, which includes, in particular, the

respective study, planning and development, an activity carried out on behalf of the state (theassets are part of the public railway domain).

Other ActivitiesOther ActivitiesOther ActivitiesOther Activities such as building, installing and managing interfaces with the services of other

transport modes and using spaces to enhance its assets.

The Strategic Guidelines for the Rail Sector (OESF), presented by the government in October 2006

and part of the general transport policy, stipulate a set of Strategic Objectives for the sector and

comprise the framework for developing REFERs activities.

The following table illustrates the strategic goals for 2009 as defined by REFER according to the

Activities / Budgets Plan:

Outlook analysisOutlook analysisOutlook analysisOutlook analysis Strategic ObjectivesStrategic ObjectivesStrategic ObjectivesStrategic Objectives

1. Ensure economic-financial sustainability

2. Reduce costs of rendered services

3. Increase contribution by non-operation activities

4. Increase asset utilisation levels

5. Improve the network's service levels6. Improve and modernise the network infrastructure

7. Improve services rendered to end clients

8. Ensure high safety levels

9. Promote environmental sustainability / social responsibility

10. Improve image and recognition

11. Increase the organisation's productivity

12.Optimise the management and control of investments / contracts

Organisational LearningOrganisational LearningOrganisational LearningOrganisational Learning 13. Strengthen technical and management expertise

FinancialFinancialFinancialFinancial

ClientClientClientClient

Internal / ProcessesInternal / ProcessesInternal / ProcessesInternal / Processes

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As for compliance with the goals set forth in 2008, we highlight that, of the total investment planned

for 2008, of 522,875,068522,875,068522,875,068522,875,068 euroseuroseuroseuros, only 398,063,398,063,398,063,398,063,870870870870 euros were invested, for a 76%76%76%76% realisation raterealisation raterealisation raterealisation rate.

The difference, of ----124,811,197 euros124,811,197 euros124,811,197 euros124,811,197 euros compared with the approved budget, was caused essentially

by delays/reformulations of various projects.The main works completed during 2008 are highlighted below:

Rehabilitation of the Rossio Tunnel: Start-up of train traffic on 16 April 2008;

Branch Line to the National Ironworks: Inaugurated on 18 March 2008;

Porto OCC: Operation start-up on 18 April 2008;

Lisbon OCC: Full operation start-up on 27 April 2008;

Sub-section 3.3 Ovar / Gaia New Station of Espinho: Inaugurated on 4 May 2008;

Sub-section 1.2 Alverca / Vila Franca de Xira Riverside Tour.

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GGGGOVERNINGOVERNINGOVERNINGOVERNING BBBBODIESODIESODIESODIES

According to its statutes (Decree-Law 104/97 of April 29), the governing bodies of REFER E.P. include

a Board of Directors and an Audit Committee. Decree-Law 141/2008, of July 22, has transformed

REFER into a public corporate entity and thereby altered the structure of its governing bodies. The

competences of the former Audit Committee are now shared by two new governing bodies: the

Supervisory Board and Chartered Accountant. Until 31 December 2008, the members of the

Supervisory Board and the Chartered Accountant had not been appointed yet, such that the Audit

Committee remained in office.

BBBBOARD OFOARD OFOARD OFOARD OF DDDDIRECTORSIRECTORSIRECTORSIRECTORS (DECREE-LAW104/97 OFAPRIL 29).

The Board of Directors generally performs all acts necessary to manage and develop the company

and to manage its assets without loss to the powers of the respective supervising ministries" (Decree-

Law 104/97 of April 29).

CCCCHAIRMAN OF THEHAIRMAN OF THEHAIRMAN OF THEHAIRMAN OF THE BBBBOARD OFOARD OFOARD OFOARD OF DDDDIRECTORSIRECTORSIRECTORSIRECTORS

LUS FILIPE MELO E SOUSAPARDAL

VVVVICEICEICEICE----CCCCHAIRMAN OF THEHAIRMAN OF THEHAIRMAN OF THEHAIRMAN OF THE BBBBOARD OFOARD OFOARD OFOARD OF DDDDIRECTORSIRECTORSIRECTORSIRECTORS

ALFREDOVICENTE PEREIRA

BBBBOARD MEMBEROARD MEMBEROARD MEMBEROARD MEMBER

ROMEU COSTAREIS

BBBBOARDOARDOARDOARD MMMMEMBEREMBEREMBEREMBER

ALBERTO JOS ENGENHEIRO CASTANHO RIBEIRO

BBBBOARDOARDOARDOARD MMMMEMBEREMBEREMBEREMBER

CARLOSALBERTO JOO FERNANDES

Engineering and Construction Human Resources Organizational Development General Secretariat Quality Environment Property Assets Corporate Relations

Economy and Finance Plan and Control Strategic Planning Provisions and Logistics

Legal land Litigations International Relations Auditing Communication and Image EU Funds

Infrastructure Operation Safety/Security Stations Management

Information Systems and Technology Tariffs and Infrastructure Access Liaison with the Fertagus Concession

Contract

Contracts with the State

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AAAAUDITUDITUDITUDIT BBBBODIESODIESODIESODIES (DECREE-LAW141/2008 OF JULY22)

The audit bodies are responsible for monitoring the companys legality, regularity and good financial

and asset management.

Audit BodyAudit BodyAudit BodyAudit Body

The Supervisory Board, without loss to other duties which it is legally assigned, must:

a) Audit management and compliance with regulatory standards applicable to thecompanys activities to, in particular, fulfil the objectives stipulated in the annual budgets;b) Issue opinions about documents which render the companys accounts, in particular

results, the operating statement and other documents to be submitted annually by the

Board of Directors, as well as the annual report of the said board;

c) Issue an opinion about any issue of interest to the company and which is submitted by the

Board of Directors for assessment;

d) Inform the competent bodies about any detected company management irregularities;

e) Issue an opinion on the legality and convenience of the acts by the Board of Directors in

cases where the law requires its approval or agreement.

PositionPositionPositionPosition Governing BodiesGoverning BodiesGoverning BodiesGoverning Bodies ElectionElectionElectionElection MandateMandateMandateMandate

Chairman of the BoardChairman of the BoardChairman of the BoardChairman of the Board Lus Filipe Melo e Sousa Pardal69/2005 of November

241st

2005/2008

Vice-Chairman of the BoardVice-Chairman of the BoardVice-Chairman of the BoardVice-Chairman of the Board Alfredo Vicente Pereira69/2005 of November

241st

2005/2008

Board MemberBoard MemberBoard MemberBoard Member Romeu Costa Reis69/2005 of November

241st

2005/2008

Board MemberBoard MemberBoard MemberBoard Member Alberto Jos Engenheiro Castanho Ribeiro69/2005 of November

241

2005/2008

Board MemberBoard MemberBoard MemberBoard Member Carlos Alberto Joo Fernandes69/2005 of November

241st

2005/2008

Chairman of the Board of DirectorsChairman of the Board of DirectorsChairman of the Board of DirectorsChairman of the Board of Directors Lus Filipe Melo e Sousa PardalDecision 4/2009of January 21

2nd2009/2011

Vice-Chairman of the Board of DirectorsVice-Chairman of the Board of DirectorsVice-Chairman of the Board of DirectorsVice-Chairman of the Board of Directors Alfredo Vicente PereiraDecision 4/2009of January 21

2nd2009/2011

Board MemberBoard MemberBoard MemberBoard Member Romeu Costa ReisDecision 4/2009of January 21

2nd2009/2011

Board MemberBoard MemberBoard MemberBoard Member Alberto Jos Engenheiro Castanho RibeiroDecision 4/2009of January 21

2nd2009/2011

Board MemberBoard MemberBoard MemberBoard Member Carlos Alberto Joo FernandesDecision 4/2009

of January 212nd

2009/2011

Board of DirectorsBoard of DirectorsBoard of DirectorsBoard of Directors

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Chartered AccountantChartered AccountantChartered AccountantChartered Accountant

The Chartered Accountant shall perform all examinations and checks necessary for the review

and legal certification of accounts, as well as perform the following duties:

a) Check the regularity of the books, accounting records and the underlying documents;

b) When deemed convenient and through the means thought suitable, check cash amounts

and the existence of any types of goods or values belonging to the company or received

by it as a guarantee, deposit or other purpose;

c) Check the exactitude of the documents rendering the accounts;

d) Check whether the accounting policies and valuation criteria applied by the company

lead to a correct evaluation of the assets and results.

Quarterly, the Supervisory Board and the Chartered Accountant must send to the ministers in charge

of finance and transports a brief report outlining the implemented control measures and any

detected anomalies, as well as budget deviations and respective causes."

Audit CommitteeAudit CommitteeAudit CommitteeAudit Committee

AuditingAuditingAuditingAuditing

Assistance is provided to the Audit Committee according to the 2008 contract for Rendering

External Auditing Services to the REFER Group:

EEEEXTERNALXTERNALXTERNALXTERNALAAAAUDITINGUDITINGUDITINGUDITING

PRICEWATERHOUSECOOPERS &ASSOCIADOS SOCIEDADE REVISORES OFICIAIS DE CONTAS,LDA.

PositionPositionPositionPosition Governing BodiesGoverning BodiesGoverning BodiesGoverning Bodies ElectionElectionElectionElection

Barbas, Martins, Mendona & Associados,SROC,

Representada by Issuf Ahmad

MemberMemberMemberMember Hilrio Manuel Marcelino Teixeira DC 641/2005

Mandate suspendedMandate suspendedMandate suspendedMandate suspended Jos Manuel Alves Portela

Audit CommitteeAudit CommitteeAudit CommitteeAudit Committee

President (ROC (chartered accountant)President (ROC (chartered accountant)President (ROC (chartered accountant)President (ROC (chartered accountant)

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RRRREMUNERATIONEMUNERATIONEMUNERATIONEMUNERATION TOTOTOTO MMMMEMBERS OFEMBERS OFEMBERS OFEMBERS OF GGGGOVERNINGOVERNINGOVERNINGOVERNING BBBBODIESODIESODIESODIES

The following remuneration statute was issued for the governing bodies of REFER E.P.E.:

1.1.1.1.BBBBOARD OFOARD OFOARD OFOARD OF DDDDIRECTORSIRECTORSIRECTORSIRECTORS

Executive Directors

President:President:President:President:

- Remuneration of 4,752.55 euros, 14 times per year;

- Representation expenses BD 1,663.39 12 x year

- Accumulation of Duties 843.65 14 x year

ViceViceViceVice----PresidentPresidentPresidentPresident

- Remuneration of 4,496.64 euros, 14 times per year;



Board MembersBoard MembersBoard MembersBoard Members

- Remuneration of 4,204.18 euros, 14 times per year.



2.2.2.2.AAAAUDITUDITUDITUDIT CCCCOMMITTEEOMMITTEEOMMITTEEOMMITTEE

Member of the Audit CommitteeMember of the Audit CommitteeMember of the Audit CommitteeMember of the Audit Committee

Hilrio Manuel Marcelino TeixeiraHilrio Manuel Marcelino TeixeiraHilrio Manuel Marcelino TeixeiraHilrio Manuel Marcelino Teixeira

- Remuneration for being on the Audit Committee 950.51 12 x year

The remunerations statute for the second mandate has not been determined yet.

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The governing body members were remunerated as follows:

According to article 4 of Decree-Law 141/2008, of July 22, REFER, E.P.E. shall be audited by a

Supervisory Board and by a Chartered Accountant. However, since the members of the audit body

were not appointed by a joint order until the end of 2008, the members of the audit committeeremained in office.

euros

BOARD OF DIRECTORS -BOARD OF DIRECTORS -BOARD OF DIRECTORS -BOARD OF DIRECTORS -Remunerations 2007Remunerations 2007Remunerations 2007Remunerations 2007

Lus Filipe Melo eLus Filipe Melo eLus Filipe Melo eLus Filipe Melo e

Sousa PardalSousa PardalSousa PardalSousa PardalAlfredo VicenteAlfredo VicenteAlfredo VicenteAlfredo Vicente

PereiraPereiraPereiraPereiraRomeu CostaRomeu CostaRomeu CostaRomeu Costa

ReisReisReisReis

Alberto JosAlberto JosAlberto JosAlberto Jos

EngenheiroEngenheiroEngenheiroEngenheiroCastanho RibeiroCastanho RibeiroCastanho RibeiroCastanho Ribeiro

Carlos AlbertoCarlos AlbertoCarlos AlbertoCarlos Alberto

Joo FernandesJoo FernandesJoo FernandesJoo Fernandes

ChairmanChairmanChairmanChairman Vice-ChairmanVice-ChairmanVice-ChairmanVice-Chairman MemberMemberMemberMember MemberMemberMemberMember MemberMemberMemberMember

1. Remuneration1. Remuneration1. Remuneration1. Remuneration

1.1. Base remuneration 57.031 53.960 50.450 50.450 50.450

1.2. Accumulated management positions 10.124 10.124 10.124 10.124 10.124

1.3. Complementary remuneration

1.4. Representation expenses 19.961 16.188 15.135 15.135 15.135

1.5. Management bonuses (months)

1.6. Others (identify in detail)

Holiday subsidy 5.596 5.340 5.048 5.048 5.048

Christmas subsidy 5.596 5.340 5.048 5.048 5.048

2. Other fringe benefits and compensations2. Other fringe benefits and compensations2. Other fringe benefits and compensations2. Other fringe benefits and compensations

2.1. Telephone expenses 499 463 170 843 1.777

2.2. Value spend by the company to purchase acompany car

18.263 14.260 10.953 14.063 11.346

2.3. Value spend on company car fuel 4.627 3.215 2.943 4.903 2.315

2.4. Travel subsidy 406 731 244 487

2.5. Meal subsidy


3. Costs incurred on social benefits3. Costs incurred on social benefits3. Costs incurred on social benefits3. Costs incurred on social benefits

3.1. Mandatory social security 18.607 17.756 4.617 16.784 2.528

3.2. Complementary retirement plans

3.3. Health insurance 241 241 241 241 241

3.4. Life insurance 7 7 7 7 7


4. Additional Information4. Additional Information4. Additional Information4. Additional Information

4.1.Option for salary of origin (y/n) n n n n n

4.2. Social Security regime Normal Regime Normal RegimeCivil Service

Pension FundNormal Regime

Civil ServicePension Fund

4.3. Compliance with no. 7 of RCM 155/2005

4.4. Year vehicle was acquired by the company AOV 2006 AOV 2007 AOV 2008 AOV 2007 AOV 2007

4.5. Exercise of option to acquire vehicle

4.6. Usufruct of company home n n n n n

4.7. Holds remunerated position outside the group


(euros)

AUDIT COMMITTEE - AUDIT COMMITTEE - AUDIT COMMITTEE - AUDIT COMMITTEE -2008200820082008

Hilrio Manuel MarcelinoHilrio Manuel MarcelinoHilrio Manuel MarcelinoHilrio Manuel MarcelinoTeixeiraTeixeiraTeixeiraTeixeira

Salgueiro, Castanheira eSalgueiro, Castanheira eSalgueiro, Castanheira eSalgueiro, Castanheira eAssociados, SROCAssociados, SROCAssociados, SROCAssociados, SROC

(1st Quarter)

Barbas, Martins, Mendona &Barbas, Martins, Mendona &Barbas, Martins, Mendona &Barbas, Martins, Mendona &Associados, SROC, LdaAssociados, SROC, LdaAssociados, SROC, LdaAssociados, SROC, Lda

(As of the 2nd Quarter)

RemunerationRemunerationRemunerationRemuneration

Base remuneration 11.406

Expenses on social benefitsExpenses on social benefitsExpenses on social benefitsExpenses on social benefits

Mandatory social security 2.709

Social Security RegimeSocial Security RegimeSocial Security RegimeSocial Security Regime Normal Regime

Fees 10.812 57.270

TOTALTOTALTOTALTOTAL 14.11514.11514.11514.115 10.81210.81210.81210.812 57.27057.27057.27057.270

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IIIINTERNAL ANDNTERNAL ANDNTERNAL ANDNTERNAL AND EEEEXTERNALXTERNALXTERNALXTERNAL RRRRULES ANDULES ANDULES ANDULES AND RRRREGULATIONSEGULATIONSEGULATIONSEGULATIONS

This chapter will list the external and internal regulations to which REFER is subject:

Legal Code for the Land Transport System, Law 10/90 of March 17,Legal Code for the Land Transport System, Law 10/90 of March 17,Legal Code for the Land Transport System, Law 10/90 of March 17,Legal Code for the Land Transport System, Law 10/90 of March 17, the land transport systemincludes the infrastructures and production means assigned to land travel by persons and freight

within the Portuguese territory or when the trip ends or has part of its route within the said territory

and is governed by this law, its underlying decree-laws and regulations.

DecreeDecreeDecreeDecree----Law 104/97Law 104/97Law 104/97Law 104/97, which created REFER, E.P., was published on 29 April 199729 April 199729 April 199729 April 1997.

REFER, whose share capital is 100% held by the state, is governed jointly by the Ministry of

Finance and the Ministry of Public Works, Transport and Communications. REFER carries out

activities to fulfil its goals, according to the principles of modernisation and effectiveness, to

regularly and continuously render a public service of managing the national railway network

infrastructures. According to what was established, REFERREFERREFERREFER:

may carry out all necessary or convenient management acts to fulfil its objectives;

maintains the rights and assumes the responsibilities assigned to the state by the applicable

legal provisions and regulations covering the Public Railway Domain.

DecreeDecreeDecreeDecree----Law 299Law 299Law 299Law 299----B/98B/98B/98B/98 published on 29 September 1998, created InstitutoInstitutoInstitutoInstituto

Nacional do Transporte FerrovirioNacional do Transporte FerrovirioNacional do Transporte FerrovirioNacional do Transporte Ferrovirio (INTF) (National Railway Transport

Institute) which regulates and inspects the railway sector, supervises

activities and intervenes in public service concessions.

DecreeDecreeDecreeDecree----Law 568/99, of December 23Law 568/99, of December 23Law 568/99, of December 23Law 568/99, of December 23, revises regulations applicable to level crossings, approved

by Decree-Law 156/81, of June 9, and establishes the obligation to prepare multi-year plans to

eliminate level crossings. It was amended by DecreeDecreeDecreeDecree----Law 24/2005, of JanuLaw 24/2005, of JanuLaw 24/2005, of JanuLaw 24/2005, of January 26ary 26ary 26ary 26.

For contracting purposes, REFER is subject to Decree-Law 223/01, in the specific case of works

contracts, and everything not regulated therein is covered by Decree-Law 59/99.

DecreeDecreeDecreeDecree----Law 93/2000Law 93/2000Law 93/2000Law 93/2000, of May 23, establishes the conditions to be met in the national territory to

obtain interoperability of the trans-European high speed railway system (transposes Council

Directive 96/48/CE, of 23 July 1996). It was altered by Decree-Law 152/2003, of July 11, which

rectifies omissions detected in the transposition of Council Directive 96/48/CE, of July 23, carried

out by Decree-Law 93/2000, of May 23.

DecreeDecreeDecreeDecree----Law 270/2003,Law 270/2003,Law 270/2003,Law 270/2003, of October 28, was published in October 2003in October 2003in October 2003in October 2003 and transposed to

national law Directives 2001/12/CE, 2001/13/CE and 2001/14/CE, normally called 1st Railway

Package to open the railway transport market to participation by private companies, thus

guaranteeing a number of criteria regarding technical, financial and safety capacity (altered by

Decree-Law 146/2004, of June 17).

DecreeDecreeDecreeDecree----Law 276/2003,Law 276/2003,Law 276/2003,Law 276/2003, of November 4of November 4of November 4of November 4, establishes the new legal policy applicable to assets of

the public railway domain, including rules on the respective utilisation, disfranchising, exchange

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Rede Ferroviria Nacional REFER,

and the rules applicabl

with those assets, legislati

Consequent to what wa

year, the first edition of

essential information formanaged by REFER and

DecreeDecreeDecreeDecree----Law 24/2005, ofLaw 24/2005, ofLaw 24/2005, ofLaw 24/2005, of

Law 568/99, of Decemb

In March 2005, INTF publ

rendered to operators by

DecreeDecreeDecreeDecree----Law 156/2005Law 156/2005Law 156/2005Law 156/2005,

providers that are in cont

As an issuer of securities,

and in the Securities anSecurities anSecurities anSecurities an

reference to the applica

Decree-Law 200/2006

TransportTransportTransportTransport, merging vario

Transport InstituteTransport InstituteTransport InstituteTransport Institute.

CouncilCouncilCouncilCouncil of Ministers Resof Ministers Resoof Ministers Resof Ministers Reso

corporate sector compa

DecreeDecreeDecreeDecree----Law 18/2008, oLaw 18/2008, oLaw 18/2008, oLaw 18/2008, o

contractscontractscontractscontracts, thereby defini

made to contract an ent

REFERs statutes were alt

which came into force

National Railway Network

new legal system of th

Nacional, REFER, E. P., w

Rede Ferroviria NacionRede Ferroviria NacionRede Ferroviria NacionRede Ferroviria Nacion

E.P.E.

to relations of bordering proprietors and of th

e authorisation given by Law 51/2003, of Augus

stipulated in this legal statute, REFERREFERREFERREFER prepare

he Network DirectoryNetwork DirectoryNetwork DirectoryNetwork Directory which provides railway tr

their access to and utilisation of the nationopen to railway transport.

January 26January 26January 26January 26, alters the Level Crossing Regulatio

r 23.

ished Regulation 21/2005Regulation 21/2005Regulation 21/2005Regulation 21/2005 covering the user fee

the infrastructure manager.

f September 15, establishes the obligation fo

act with the general public to maintain a compl

REFER must publish all the information stipulate

d Exchange Commissiond Exchange Commissiond Exchange Commissiond Exchange Commission (CMVM) Regulations(CMVM) Regulations(CMVM) Regulations(CMVM) Regulations

ion of the IFRS.

reated IMTT - Institute of Mobility and LandInstitute of Mobility and LandInstitute of Mobility and LandInstitute of Mobility and Land

s entities, including the INTF - National RailwaNational RailwayNational RailwaNational Railway

lution 49/2007lution 49/2007lution 49/2007lution 49/2007 defined the Good Governance

nies.

f January 29January 29f January 29January 29, regulates the drafting and imdrafting and imdrafting and imdrafting and im

g all consequent procedures, from the mom

ity until the contract award and the contract ex

red through the publication of DecreeDecreeDecreeDecree----Law 14Law 14Law 14Law 14

on 23 July 2008. This Decree-Law alters the s

, REFER, E.P., and the respective statuses, in ord

state's corporate sector. Therefore, Rede Fe

s transformed into a public corporate entity no

l,l,l,l, REFERREFERREFERREFER, E. P. E., E. P. E., E. P. E., E. P. E.

18

08080808

e population in general

t 22.

d and publishedpublishedpublishedpublished, in this

nsport companies with

al railway infrastructure

s approved by Decree-

s applicable to services

all goods and service

aints book.

d in the Securities CodeSecurities CodeSecurities CodeSecurities Code

4/2004, of 11/20054/2004, of 11/20054/2004, of 11/20054/2004, of 11/2005, in

principles for the state's

plementation of publiclementation of publicplementation of publiclementation of public

nt when the decision is

cution.

1/2008, of July 221/2008, of July 221/2008, of July 221/2008, of July 22, and

tatute that created the

er to adapt them to the

rroviria

called

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IIIINFORMATION ONNFORMATION ONNFORMATION ONNFORMATION ON RRRRELEVANTELEVANTELEVANTELEVANT TTTTRANSACTIONS WITHRANSACTIONS WITHRANSACTIONS WITHRANSACTIONS WITH RRRRELATEDELATEDELATEDELATED EEEENTITIESNTITIESNTITIESNTITIES

The following table illustrates the most relevant revenue by REFER E.PE.P. with companies within its

group during 2008:

(Euros)CompanyCompanyCompanyCompany Contract / IncomeContract / IncomeContract / IncomeContract / Income AmountAmountAmountAmount

Assigning of workers 1.339.314,00Other services rendered 129.009,24

1.468.323,241.468.323,241.468.323,241.468.323,24

Advertising 690.943,51Concession of commercial areas 1.619.229,80Other services rendered 47.265,60

2.357.438,912.357.438,912.357.438,912.357.438,91

Concessions 1.187.539,20

Other services rendered 711.479,161.899.018,361.899.018,361.899.018,361.899.018,36

INVESFER Promoo e Comercializaode Terrenos e Edifcios, S.A.

Rental of spaces 55.892,03

55.892,0355.892,0355.892,0355.892,03

Ferbritas, Empreendimentos Industriais eComerciais S.A.

Other services rendered 74.219,22

74.219,2274.219,2274.219,2274.219,22

CPCOM Explorao de EspaosComerciais da CP, SA

RAVE - Rede de Alta Velocidade, S.A.

REFER TELECOM Servios de

Telecomunicaes, S.A.

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IIIINFORMATIONNFORMATIONNFORMATIONNFORMATIONAAAABOUTBOUTBOUTBOUT OOOOTHERTHERTHERTHER TTTTRANSACTIONSRANSACTIONSRANSACTIONSRANSACTIONS

For public contracting purposes, and in the specific case of works contracts, REFER E.P.E. was subject

to Decree-Law 223/01 until 30 July 2008. Anything not regulated therein is covered by Decree-Law

59/99.As of 30 July 2008, the company will be covered by the new Public Contracts Code (PCC) approved

by Decree-Law 18/2008, of January 29. By regulating public contracting matters, the PCC transposes

E.U. directives 2004/17 and 2004/18 (both of the European Parliament and of the Council, of 31

March 2004), defining the rules that, until now, were dispersed among the following statutes:

a) Decree-Law 59/99, of March 2 (public works contracts);

b) Decree-Law 197/99, of June 8 (acquisitions of goods and services);

c) Decree-Law 223/2001, of August 9 (works contract and acquisitions for special sectors);

d) Various other statutes and miscellaneous precepts applicable to public contracting.

In 2007, REFER implemented internal contracting procedures centralised in the Contracting,

Procurement and Logistics Department applicable to all contractual procedures for works contracts

or rendering of services to be carried out through a contractual process or direct agreement, whose

estimated value is equal to or greater than 125,000.

Li nha de SintraLi nha de SintraLi nha de SintraLi nha de Sintra

CC O PortoCC O PortoCC O PortoCC O Porto

CC O PortoCC O PortoCC O PortoCC O Porto

CC O LisboaCC O LisboaCC O LisboaCC O Lisboa

Viana do CasteloViana do CasteloViana do CasteloViana do Castelo

Ligao Ferroviria ao Porto deL igao Ferroviria ao Porto deLigao Ferroviria ao Porto deL igao Ferroviria ao Porto deAveiroAveiroAveiroAveiro

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The following table lists the suppliers whose invoices were greater than 1 million euros, and which

represent 90% of total invoicing:

An annex includes the contracts signed in 2008 and whose value exceeded 125,000.

Annexes:

Annex IAnnex IAnnex IAnnex I Contracts that were not signed through a public tender (Direct Award)

Annex IIAnnex IIAnnex IIAnnex II Works contracts whose value exceeded 125,000

Annex IIIAnnex IIIAnnex IIIAnnex III Rendered Services of a value exceeding 125,000

Annex IVAnnex IVAnnex IVAnnex IV Supplies exceeding 125,000

(Euros) (Euros)

CompanyCompanyCompanyCompanyAmount Invoiced inAmount Invoiced inAmount Invoiced inAmount Invoiced in

2008200820082008CompanyCompanyCompanyCompany

Amount Invoiced inAmount Invoiced inAmount Invoiced inAmount Invoiced in2008200820082008

OPWAY - Engenharia, SA 44.214.166 Expoland - Promoo Imob., S.A. 2.386.651

Teixeira Duarte-Eng. Construes SA 39.812.551 Ferrovial Agroman SA 2.283.635

INVESFER-Prom.Com.Terr.Edifcios SA 38.689.658 Monte Adriano - Eng Construo, SA 2.204.223

THALES Security Solutions & 34.682.989 AVS-Corretor Seguros , SA 2.048.797

Ferrovias e Construes, S.A. 28.883.973 Petrleos de Portugal-Petrogal-SA 1.934.787

Dimetronic SA 26.014.395 EDP Distribuio Energia SA(Porto) 1.812.263

Refer Telecom Serv Telecomunic SA 17.169.999 Iberlim-Sociedade Tcnica 1.641.442

FERBRITAS-Empreend. Ind.Comrcio SA 16.086.774 TECNOVIA-Sociedade de Empreitadas 1.623.888

SOMAGUE Engenharia SA 15.580.811 Thyssen Elevatec (Elev Tecnolog) SA 1.622.440

Neopul - Soc Estudos Construes SA 11.919.780 EFACEC - S istemas de Electronica SA 1.521.096

Fergrupo - Const Tecnicas Ferrov SA 11.093.586 EMEF -Emp Manutenc Equip Ferrov SA 1.519.469

Obrecol - Obras e Construes SA 10.383.655 TECNASOL-FGE Fundaes Geotecnia SA 1.483.529

Construtora Abrantina, Sa 8.265.729 Railtech International 1.367.460Futrifer-Indstrias Ferrovirias SA 7.663.457 Gapres - Gabinete Proj Eng Ser SA 1.312.043

CP-Caminhos Ferro Portugueses, EP 7.563.482 Bombardier Transportation Portugal, 1.307.950

Mota - Engil, Engenhar e Construo 7.012.234 GIL - Gare Intermodal de Lisboa SA 1.248.601

EDP Distribuio Energia SA(Lisboa) 6.740.680 Nortejuvil-Sociedade de Construes 1.217.330

Promorail - Tecnologias de 6.338.836 Geofer -Prod Com Bens Equipament SA 1.198.803

BRISA Engenharia e Gesto, SA 4.821.967 GIBB Portugal Strategic Alliance 1.098.898

Grupo 8-Vigilncia Prev Electr Lda 4.290.121 EFACEC Engenharia SA 1.094.100

Socied.de Const. Soares da Costa SA 4.116.590 ArcelorMittal Espaa, S.A. 1.072.178

Lena Engenharia e Construes, SA 3.877.368 Maranho - Soc de Construes Lda 1.066.572

Satepor-Indstria de Travessas de 3.733.487 PDT - Proj. Telecomunicaes, SA 1.057.973

Edifer-Const.Pires Coelho 3.654.324 Joo Mata Lda 1.046.668

Consulgal-Consult Engenh Gesto, SA 2.634.411 TPF Planege - Consultores Eng 1.027.264

Somafel - Eng.Obras Ferrovirias SA 2.517.760 RAILTECH PORSOL 1.003.670DHV, S.A. 2.441.769 Accenture, Consultores de Gesto, 1.002.479

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AAAANALYSIS OF THE COMPANALYSIS OF THE COMPANALYSIS OF THE COMPANALYSIS OF THE COMPANYNYNYNYS SUSTAINABILITYS SUSTAINABILITYS SUSTAINABILITYS SUSTAINABILITY

This chapter is included in the 2008 Sustainability Report of REFER, E.P.E.

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EEEEVALUATION OF THEVALUATION OF THEVALUATION OF THEVALUATION OF THE LLLLEVEL OFEVEL OFEVEL OFEVEL OF CCCCOMPLIANCE WITH THEOMPLIANCE WITH THEOMPLIANCE WITH THEOMPLIANCE WITH THE PPPPRINCIPLES OFRINCIPLES OFRINCIPLES OFRINCIPLES OF GGGGOODOODOODOOD GGGGOVERNANCEOVERNANCEOVERNANCEOVERNANCE

Company's mission, objectives and policiesCompany's mission, objectives and policiesCompany's mission, objectives and policiesCompany's mission, objectives and policies

Indication of the mission and how it is carried out

Indication of the objectives and their rate of fulfilment

Internal and external regulations to which the company is subjectInternal and external regulations to which the company is subjectInternal and external regulations to which the company is subjectInternal and external regulations to which the company is subject

Summary reference of the regulations in question, whilst presenting the most relevant and important aspects

Information on relevant transactions with related entitiesInformation on relevant transactions with related entitiesInformation on relevant transactions with related entitiesInformation on relevant transactions with related entities

Information about other transactionsInformation about other transactionsInformation about other transactionsInformation about other transactions

Procedures applied to acquire goods and services

Universe of transactions which did not take place under market conditions

List of suppliers representing over 5% of external supplies and services (if this percentage exceeds 1 M)

Indication of the governance model and identification of the members of governingIndication of the governance model and identification of the members of governingIndication of the governance model and identification of the members of governingIndication of the governance model and identification of the members of governingbodiesbodiesbodiesbodies

Identify all members of the governing bodies, their respective duties and responsibilities at the company, andwhether any members of the Board of Directors belong to any specialised committees.

Identify the independent auditor, if one exists.

Remuneration of members of the governing bodiesRemuneration of members of the governing bodiesRemuneration of members of the governing bodiesRemuneration of members of the governing bodiesProvide detailed information according to the attached list

Individually list all members of management bodies (executive and non-executive), of the audit body and of theMeeting Board (if applicable) who have carried out duties during the year, specifying the concrete period, if lessthan one year.

Indicate the overall remunerations earned and other benefits and fringe benefits granted by the company

Indicate annual amounts

A company sustainability analysis covering economic, social and environmental aspectsA company sustainability analysis covering economic, social and environmental aspectsA company sustainability analysis covering economic, social and environmental aspectsA company sustainability analysis covering economic, social and environmental aspectsSustainability

Report

Evaluation of the level of compliance with the Principles of Good Governance, properlyEvaluation of the level of compliance with the Principles of Good Governance, properlyEvaluation of the level of compliance with the Principles of Good Governance, properlyEvaluation of the level of compliance with the Principles of Good Governance, properlyjustifiedjustifiedjustifiedjustified

Presentation of the Code of EthicsPresentation of the Code of EthicsPresentation of the Code of EthicsPresentation of the Code of Ethics

Reference to membership to a Code of Ethics

Indication where it is available for consultation

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EEEETHICS ANDTHICS ANDTHICS ANDTHICS AND CCCCONDUCTONDUCTONDUCTONDUCT CCCCODEODEODEODE

During 2008, REFERs Ethics Committee performed its main activity which is to monitor and

implement the Ethics and Conduct Code approved by the company in late 2006.

The committee focussed essentially on disclosure measures and awareness raising actions which

placed the many day-to-day work activities within a framework of principles and values fundamental

for REFER and compliant with the conduct regulations in force.

As such, the Ethics Committee decided to create a new means designed specifically to

communicate with personnel about ethics. This new means, in addition to containing the Ethics and

Conduct Code text, includes practical cases to foster thought about and emphasise solutions for

situations potentially faced by personnel whilst performing their tasks.

The Ethics Committee also continued to monitor specific requests which it was submitted, many of

which for clarifications about the code's practical application, which means that the personnel use it

as another work tool, thus having accepted its conduct principles and standards. All these factors help increase the culture of responsibility and integrity characteristic of REFERs

actions, based on the ethical principles of rigour, transparency, honesty and impartiality in fulfilling

the companys mission of providing the market with a competitive transport infrastructure whilst

managing and developing an efficient, safe and environmentally friendly railway network.

The Ethics and Conduct Code may be consulted atwww.refer.pt.

Any person or entity may contact the Ethics Committee by e-mail at [email protected].

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3.The European economy entered a recession in 2008, with a greater impact as of the last quarter,

and which was intensified because of the deepening financial crisis that started in mid 2007.

The economic slowdown and the forecast diminishing world growth and demand had a negative

impact on the Euro Zone economy. In particular, foreign demand for exports fell and domestic

activities (investment and consumption) decreased due to expectations of weakening demand and

tighter financing conditions. Data from economic surveys and activity indicators for December and

January confirmed this trend by forecasting negative growth in the last quarter of 2008 and during

2009.

The European Central Bank, in its meeting in January and for the fourth consecutive month, decided

to reduce the minimum proposed rate applicable to refinancing operations by 50 basis points (down

to 2.0 percent) and the rates applicable to the deposit facility and provision of liquidity to 1.0 and 3.0

percent, respectively. This drop in the reference interest rate is in line with the lower inflation caused

by a progressive economic slowdown in the wake of the increasingly more intense and widespread

financial crisis and plunging oil prices in the last quarter. The moderately higher currency and lending

rates also contributed to decreasing the inflationary pressure and risks.

In the money market, the Euribor interest rates rose sharply, particularly during the second quarter.

These rising interest rates resulted from intensifying liquidity problems felt across the worlds financial

system triggered by banks successive announcements of asset losses which generally undermined

confidence in the financial market. However, measures implemented by the main central banks

(decreasing the respective key interest rates and liquidity injections) and direct intervention by states

in their respective banking system helped to invert this trend as of the last quarter of 2008.

On the other hand, the euros effective nominal exchange rate rose against the main international

currencies, in particular against the sterling, the swiss franc and the dollar, although it depreciated

against the yen. The strengthening euro made Europe less competitive than other countries outside

the euro zone.

The Harmonised Index of Consumer Prices (HICP), on an annual average, increased from 2.1% in

2007 to 3.3% in 2008 and dropped significantly starting in July. Most items comprising the HICP

increased more than in 2007, with emphasis on higher priced energy sources and food staples until

the first half of the year. Excluding these two items, the average annual change in the HICP in 2008

rose 1.8% compared with 1.9% in 2007.

PORTUGUESEPORTUGUESEPORTUGUESEPORTUGUESEECONOMYECONOMYECONOMYECONOMY

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In keeping with the abovementioned context, Portugals economic growth stagnated. In 2008, Gross

Domestic Product (GDP) growth was null compared with the 1.9% growth in 2007. This stagnation was

marked by the interaction between the international financial crisis and the world economic

slowdown, in a scenario where an enduring number of structural weaknesses continued to hamper

Portugals economic growth.

The inflation rate, according to the average annual change in the Harmonised Index of Consumer

Prices (HICP), increased from 2.4% in 2007 to 2.7% in 2008. Despite this increase, inflation fell in the

fourth quarter, in particular the significant fall in energy prices, non-energy industrial goods and food

goods.

As for Portugal's needs to finance its economy, determined by the combined deficit of the current

and capital balances in percentage of GDP, the Bank of Portugals current forecast indicates that

these balances rose from 8.2 percent of GDP in 2007 to about 9.0% of GDP in 2008. This

deteriorating situation mainly reflects the sharp rise in the trade balance deficit of goods and

services. The deficit stemmed from skyrocketing oil prices and an abrupt drop in exports in contrast to

imports which continued to increase.

REFERREFERREFERREFER

In 2008, REFER operated within a context of slowing economic growth.

Due to the state budget cuts, compensations paid to REFER for rendering a public service were not

sufficient to meet its needs. On the other hand, in the last quarter, it became more difficult to obtain

bank loans which also became more expensive for the company, clearly resulting from the banking

systems liquidity problems.

MACROECONOMIC SCENARIO 2008MACROECONOMIC SCENARIO 2008MACROECONOMIC SCENARIO 2008MACROECONOMIC SCENARIO 2008 Growth rate, in %Growth rate, in %Growth rate, in %Growth rate, in %

Private consumption ** 1,4

Public consumption * 0,2

GFCF ** -4,0

Domestic demand * 1,0

Exports ** 0,6

Imports ** 6,6

GDP ** 0,0

Current Balance + Capital Balance (% GDP)Current Balance + Capital Balance (% GDP)Current Balance + Capital Balance (% GDP)Current Balance + Capital Balance (% GDP) **** -9,0-9,0-9,0-9,0

Harmonised Index of Consumer PricesHarmonised Index of Consumer PricesHarmonised Index of Consumer PricesHarmonised Index of Consumer Prices 2,72,72,72,7

Source: Bank of Portugal / INE (National Statistics Institute)

* Forecast indicator released by the Bank of Portugal

** -According to statistical data presented by INE

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OUTLOOKOUTLOOKOUTLOOKOUTLOOK

The Bank of Portugal is forecasting a negative economic growth of -0.8% for Portugal in 2009. This

negative growth is essentially caused by the deepening international recession which is expected to,

on one hand, directly affect growth of exports and, on the other hand, imply delaying decisions on

consumption and investment by national economic players.

Lastly, note that private investment and consumption of durable goods will continue to be affected

by increasing spreads applicable to the reference interest rate for bank operations (although the

reference rate is expected to fall) and due to the greater difficulty in obtaining bank loans. These

restrictions arise from the supervision entitys imposition that banks maintain minimum solvency rates,

from the need for greater control over risk in operations and from yield targets by banks shareholders,

within a context of tense international financial markets which is still far from being attenuated.

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4.REFER renders a public service by managing the overall National Railway Network infrastructure and istherefore responsible for carrying out activities to meet its goals according to the principles of

modernisation and effectiveness by operating essentially in two business areas:

Infrastructure ManagementInfrastructure ManagementInfrastructure ManagementInfrastructure Management includes managing the railway infrastructures capacity,

conservation and maintenance and managing the respective circulation command and

control systems, including signalling, regulation and promptness in order to ensure the

indispensable safety and quality conditions of a public railway transport system.

InvestmentInvestmentInvestmentInvestment consists of building, installing and renewing the infrastructure, an activity carried out

on behalf of the state (the assets are part of the public railway domain).

The income and costs arising from the various missions/activities are shown below:

The service-rendering income is assigned to the activities responsible for their execution or

management. Therefore, the operation activities include revenue from services rendered to railway

operators, in particular manoeuvres for rolling stock.

The user fee value, also accounted as a rendered service, is broken down into Operation and

Conservation, similar to the Compensatory Indemnities included in Other Income.

Supplementary income, included in the item Other Income, of Operation Activities, consisted of

selling traction energy. This items other elements stem from other complementary activities.

(10^6 euros)

ConservationConservationConservationConservat ion OperationOperationOperationOperation TotalTotalTotalTotal

Sales 0,00 0,00 0,00 0,00 0,00

User fee 33,01 27,59 60,60 0,00 60,60

Other rendered services 0,00 11,03 11,03 0,00 11,03

Production variation 0,00 0,00

Other revenue 18,31 15,30 33,61 15,82 49,43Operating IncomeOperating IncomeOperating IncomeOperating Income 51,3251,3251,3251,32 53,9253,9253,9253,92 105,24105,24105,24105,24 15,8215,8215,8215,82 121,06121,06121,06121,06

Cost of sales 5,20 0,32 5,51 0,37 5,89

Subcontracts 52,26 20,35 72,62 1,18 73,79

Other external supplies and services 6,92 17,56 24,48 4,48 28,96

Personnel costs 30,80 54,89 85,69 6,36 92,05

Depreciation and amortization in the year 2,03 1,08 3,11 0,34 3,45

Provisions for other risks and expenses 0,00 0,00 0,00 -0,48 -0,48

Adjustments to inventories and receivables 0,00 0,00 0,00 -0,14 -0,14

Other expenses 3,76 4,59 8,35 3,72 12,07

Operating CostsOperating CostsOperating CostsOperating Costs 100,96100,96100,96100,96 98,7998,7998,7998,79 199,75199,75199,75199,75 15,8415,8415,8415,84 215,59215,59215,59215,59

Operating ResultOperating ResultOperating ResultOperating Result -49,64-49,64-49,64-49,64 -44,87-44,87-44,87-44,87 -94,51-94,51-94,51-94,51 -0,02-0,02-0,02-0,02 -94,53-94,53-94,53-94,53

TotalTotalTotalTotalCompanyCompanyCompanyCompany

PROFIT AND LOSS ACCOUNT PER ACTIVITY 2008PROFIT AND LOSS ACCOUNT PER ACTIVITY 2008PROFIT AND LOSS ACCOUNT PER ACTIVITY 2008PROFIT AND LOSS ACCOUNT PER ACTIVITY 2008

Infrastructure ManagementInfrastructure ManagementInfrastructure ManagementInfrastructure Management OtherOtherOtherOtherComplementaryComplementaryComplementaryComplementary

ActivitiesActivitiesActivitiesActivities

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Operating costs are distributed among REFERs Missions and Activities by associating the amounts to

the real activities, in particular in Infrastructure Management. This is the case of infrastructure

maintenance costs (particularly subcontracted maintenance), expenses on stations,

telecommunications, emergency train, capacity management and traction energy. There are other

amounts which are distributed through the distribution keys and which reveal how the companysindividual organisational units allocate resources to their respective operation tasks.

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4.1.INFRASTRUCTURE MANAGEMENT

CCCCHARACTERISATION OF THARACTERISATION OF THARACTERISATION OF THARACTERISATION OF THEHEHEHE RRRRAILWAYAILWAYAILWAYAILWAYNNNNETWORKETWORKETWORKETWORK

In 2008, the national railway network had a total track length of 3,618 km, of which 2,842 km are

currently open to train traffic. This length includes 4 km operated by Metro de Mirandela. The network

increased by 4 km compared with 2007, after having included the Branch Line to the National

Ironworks and the Fundo Terminal. On the other hand, the electrified network increased 24 km due

to the electrification of the Barreiro Pinhal Novo section, the Lourial Branch Line and the National

Ironworks Branch Line.

Therefore, the 2008 national railway network is described as follows:

Electrified lines totalled 1,460 km of the national railway network, for 51% of the total network with

traffic.

During 2008, 24 km of railway network was electrified. Therefore, since 1998 REFER has electrified 587

km of the railway network.

Without TrainWithout TrainWithout TrainWithout TrainTrafficTrafficTrafficTraffic National RailwayNational RailwayNational RailwayNational RailwayNetworkNetworkNetworkNetwork

25.000V25.000V25.000V25.000V 1.500V 1.500V1.500V1.500V Sub-TotalSub-TotalSub-TotalSub-Total

Wide trackWide trackWide trackWide track 1.4351.4351.4351.435 25252525 1.4601.4601.4601.460 1.1901.1901.1901.190 2.6502.6502.6502.650 327327327327 2.9772.9772.9772.977

Single track 853 0 853 1.190 2.043 327 2.043

Double track 539 25 564 0 564 0 564

Multiple track 43 0 43 0 43 0 43

Narrow trackNarrow trackNarrow trackNarrow track 0000 0000 0000 192192192192 192192192192 449449449449 641641641641

Single track 0 0 0 192 192 449 641

TOTALTOTALTOTALTOTAL 1.4351.4351.4351.435 25252525 1.4601.4601.4601.460 1.3821.3821.3821.382 2.8422.8422.8422.842 776776776776 3.6183.6183.6183.618

With Train TrafficWith Train TrafficWith Train TrafficWith Train Traffic

ElectrifiedElectrifiedElectrifiedElectrifiedNot electrifiedNot electrifiedNot electrifiedNot electrified TOTALTOTALTOTALTOTAL TOTALTOTALTOTALTOTAL TOTALTOTALTOTALTOTAL

51%

49%

Electrified Not Electrified

30%

20%

1%

49%

Electrified Single Track25.000V

Electrified MultipleTrack 25.000V

Electrified DoubleTrack 15.000V

Not electrified

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As for installed rail track safety systems, at the end of 2008 sophisticated Speed Control, Convel and

ATS systems had been installed in 56% of the national railway network. The Convel System (a system

shared between the operators and REFER) ensures very high circulation safety levels by guaranteeing

compliance with signalling and with authorised train circulation speeds. This system assists the train

drivers tasks by warning him/her

about circulation conditions and by

activating the braking system (forcing

the train to stop) whenever any safety

requirement is not met. Since 2002,

the Convel system was applied to

629 km of the national railway

network.

The Ground-Train Radio is another safety system installed in the national railway network is now

operative in 54.8% of the track length. The Ground-Train Radio (system shared by the operators and

REFER) is used for voice and data communications between train

drivers of the operators and REFER personnel in charge of traffic

control. As such, communications may be performed between

the Command Post and the train driver, stations and train drivers

and train drivers of two trains. Since 2002, 586 km of rail track has

been equipped with the Ground-Train Radio system.

These figures clearly reveal REFERs effort to provide operators withan infrastructure equipped with systems that ensure greater safety

and reliability.

REFER is also equipped with various network operation support

systems to maintain its safety, such as the SITRA (Traffic Regulation

System) which is a traffic regulation computer system covering

the whole national railway network. Another system is the CTC

(Centralised Traffic Control) which consists of a computerised

command centre integrating software and hardware required forcontrolling signs and for remotely monitoring signalling facilities.

0

500

1000

1500

2000

1998 2000 2002 2004 2006 2007 2008

El ectrified LineEl ectrified LineEl ectrified LineEl ectrified Line

Rdio Solo-Comboio

(Km)

COMMAND CONTROL AND SAFETYCOMMAND CONTROL AND SAFETYCOMMAND CONTROL AND SAFETYCOMMAND CONTROL AND SAFETYSYSTEMSSYSTEMSSYSTEMSSYSTEMS

2008200820082008 2007200720072007 2006200620062006

Autom. Speed Cont. Syst. (Convel) 1.459 1.444 1.429

ATS (Automatic Braking) 25 25 25

Ground/Train Radio 1.428 1.428 1.428

Ground/Train Radio without DataTransmission

25 25 25

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Additionally, the SATA system (Automated Level Crossings Management System) provides real time

management of equipment anomalies detected at automated Level Crossings (LC), records all

situations and warns the maintenance teams. For safety reasons, in case of failure, the lifting gates of

these Level Crossings close automatically and the sound and light signs are activated.

IIIINFRASTRUCTURENFRASTRUCTURENFRASTRUCTURENFRASTRUCTURE MMMMANAGEMENTANAGEMENTANAGEMENTANAGEMENT

Infrastructure Management includes two activities:

Railway infrastructure conservation and maintenance;

Operation (circulation control and command management and capacity management).

OOOOPERATINGPERATINGPERATINGPERATING IIIINCOMENCOMENCOMENCOME

In 2008, Infrastructure Management activities increased 0.9% (977,000 euros) over 2007 (2008:

105.24 million euros; 2007: 104.26 million euros).

(10^6 euros)

2008200820082008 2007200720072007 ChangeChangeChangeChange

(1)(1)(1)(1) (2)(2)(2)(2)%%%%

(1) / (2)

IncomeIncomeIncomeIncome 105,24105,24105,24105,24 104,26104,26104,26104,26 0,9%0,9%0,9%0,9%

User fee 60,60 58,18 4,2%

Operation subsidies 33,61 31,05 8,2%

Other income 11,03 15,03 -26,6%

CostsCostsCostsCosts 199,75199,75199,75199,75 206,45206,45206,45206,45 -3,2%-3,2%-3,2%-3,2%

Materials 5,51 7,73 -28,7%

Subcontracts 72,62 81,07 -10,4%

Other external supply services 24,48 23,35 4,8%

Personnel 85,69 83,34 2,8%

Amortization 3,11 4,68 -33,5%

Other costs 8,35 6,28 33,0%

Operating ResultOperating ResultOperating ResultOperating Result -94,51-94,51-94,51-94,51 -102,19-102,19-102,19-102,19 -7,5%-7,5%-7,5%-7,5%

PersonnelPersonnelPersonnelPersonnel 2.964 2.954 0,3%

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The following changes contributed most to income:

User fee: the item with the greatest impact on

total income, comprising about 58% of total

income. In 2008, the railway infrastructure traffic

volume exceeded 41 million train kilometres (TK),for revenue of 60.6 million euros. This situation

was essentially due to growth in Passenger train

traffic.

This item includes the amounts invoiced to the

companies CP, FERTAGUS and TAKARGO. The

latter is a new railway operator operating in the

national railway network.

In 2008, over 41,247,000 TKs were run

on the network, which exceeded TKs

in 2007 by 2% (758,000 TKs). This

figure reveals an increase of 2%

(746,000 TKsk) by the CP operator and

a 1% increase (12,000 TKs) by the

FERTAGUS operator, in addition to the

start-up of the TAKARGO operator,

which in 2008 ran 37,000 TKs.

An analysis of earnings from the CP operator

which has nearly all the traffic on the national

railway network, representing 96% of TKs in 2008

clearly reveals the annual growth of essential

services, which in 2008 reached 58 million euros.

The graph showing revenue growth from the CP

client reveals a sharp drop in 2006 due to the

user fees published in the 2006 Network

Directory, which were the first to be calculated

according to the rules stipulated in Regulation 21/2005. In calculating these fees, there were

regulatory differences between the Directory's rules and those applied prior to the Directory. This

alteration had a strong impact and gave rise to the drastic 7% drop in revenue in 2006, when

compared with 2005.

132013401360138014001420144014601480

50,00

52,00

54,00

56,00

58,00

60,00

62,00

2006 2007 2008

User Fee Income GrowthUser Fee Income GrowthUser Fee Income GrowthUser Fee Income Growth

Income Growth Average income per TK (euros)

2004 2005 2006 2007 2008

CP Operator 36.646 37.611 37.289 38.718 39.464

Fertagus Operator 1.253 1.620 1.750 1.771 1.783Takargo Operator 37

0

5

10

15

20

25

30

35

40

0

10.000

20.000

30.000

40.000

50.000

(103)

Gro wth in TK'sGro wth in TK'sGro wth in TK'sGro wth in TK's

58585858

50

55

60

2005 2006 2007 2008

Millioneuros

Income Growth (User Fee)Income Growth (User Fee)Income Growth (User Fee)Income Growth (User Fee) ---- Essential ServicesEssential ServicesEssential ServicesEssential ServicesCP OperatorCP OperatorCP OperatorCP Operator

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The Operation Subsidies item includes amounts referring to Compensatory Indemnities assigned

to REFER to settle accounts. In 2008, REFER received 33.61 million euros, corresponding to a

8.2% increase over 2007.

Other Income decreased

26.6% compared with2007. The services

rendered to the operators

also involved rendering

services related with

railway activities, called additional services and auxiliary services (for which fees are published in

the Network Directory) and are recorded in Other Income. The said decrease in 2008 was

justified mainly by the fact that 2007 was a year with substantial invoicing and the settling of

accounts for services rendered in previous years.

OOOOPERATINGPERATINGPERATINGPERATING CCCCOSTSOSTSOSTSOSTS

Operating costs of infrastructure management activities decreased slightly, by 3.2%, compared with

the same period in the previous year. This items lower value was due mainly to the following factors:

A 28.7% decrease in costs on materials applied for railway infrastructure management, whereby

these costs were of 5.51 million

euros in 2008 compared with 7.73

million euros in 2007. This alteration

arose mainly from a 24% decrease

in the utilisation of crossties, partly

justified by the delay in works contracts on the North Line (Setil - Entroncamento and Aveira -

Gaia) until 2009, the 50% cost reduction on rail materials, due to the delayed execution of the

works contracts on the North Line (Setil - Entroncamento and Aveiro - Gaia) and the non-

replacement of rails on the Beira Alta Line (Pampilhosa Luso).

Costs associated to subcontracts also helped reduce operating costs, which decreased 10.4%

compared with the previous year, thus implying a reduction of 8.4 million euros (2008: 72.62

million euros; 2007: 81.07 million

euros). Track maintenance is the

specialised task with the highest costs

and the one with the sharpest

decrease (4.8 million euros). Track

maintenance decreased 16%

compared with 2007, partly justified by the delay in signing a number of contracts to control

vegetation and to clean the drainage system.

million euros

2008200820082008 2007200720072007

Traction energy 3,7 3,3 0,4 13%

Manoeuvres 0,6 1,2 -0,6 -49%

Parking of rolling stock 2,4 2,9 -0,5 -17%

Utilisation of stations and stops 2,5 2,0 0,5 23%

Other additional services 0,1 2,1 -2,0

ChangeChangeChangeChange

million euros

MAINTENANCE MATERIALSMAINTENANCE MATERIALSMAINTENANCE MATERIALSMAINTENANCE MATERIALS 2008200820082008 2007200720072007

Crossties 3,7 4,9 -1,2 -24%

TSD (track swit. devices) 0,7 0,5 0,2 52%

Rail 0,6 1,3 -0,6 -50%

Ballast 0,1 0,2 -0,1 -63%

ChangeChangeChangeChange

million euros

SUBCONTRACTSSUBCONTRACTSSUBCONTRACTSSUBCONTRACTS

(Specialty)(Specialty)(Specialty)(Specialty)

Track 24,4 29,2 -4,8 -16%

Signalling 17,8 19,2 -1,3 -7%

Telecommunications 11,2 11,5 -0,3 -3%

20072007200720072008200820082008 ChangeChangeChangeChange

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At the end of 2008, 2,964 employees were assigned to infrastructure management, compared

with 2,954 in 2007, for a 0.3% increase (10 additional employees). Personnel costs increased by

2.8% over 2007 (2008: 85.39 million euros; 2007: 83.34 million euros). The higher personnel costs

reveal decreased personnel reduction compared with previous years. The average cost per

employee, for the infrastructure management activity, increased 2.5% in 2008, mainly due tothe higher personnel costs, particularly wages.

OOOOPERATINGPERATINGPERATINGPERATING RRRRESULTSESULTSESULTSESULTS

Operating Results from Infrastructure Management activities improved by 7.5% compared with the

previous year (2008: -94.51 million euros; 2007: -102.19 million euros) due to lower operating costs

and a slight increase in operating income. Costs fell since the same volume of interventions as in the

previous year was not necessary. Income improved due to the increased TKs and the user fee

adjustment.

4.1.1. CONSERVATION AND MAINTENANCE

Infrastructure Conservation activities include the following tasks:

Conservation of the track, signalling, telecommunications and other fixed installations;

Planning of management and conservation activities;

Controlling the operation parameters of quality, safety, reliability and economy; Managing accidents and incidents with implication on the infrastructure.

(10^6 euros)

2008200820082008 2007200720072007 ChangeChangeChangeChange

(1)(1)(1)(1) (2)(2)(2)(2)%%%%

(1) / (2)

Materials 5,20 7,32 -29,1%

Subcontracts 52,26 58,44 -10,6%

Other external supp. and serv. 6,92 6,42 7,7%

Personnel 30,80 28,36 8,6%

Amortization 2,03 2,63 -23,0%

Other costs 3,76 2,18 72,0%

Total CostsTotal CostsTotal CostsTotal Costs 100,96100,96100,96100,96 105,36105,36105,36105,36 -4,2%-4,2%-4,2%-4,2%

PersonnelPersonnelPersonnelPersonnel 1.045 932 12,1%

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OOOOPERATINGPERATINGPERATINGPERATING CCCCOSTSOSTSOSTSOSTS

Operating costs for railway infrastructure conservation and maintenance activities include the

overheads of conservation and other operating costs. In 2008, these costs decreased 4.2%

compared with 2007 (2008: 100.96 million euros; 2007: 105.36 million euros).

This improvement was mainly due to lower costs on materials and subcontracts. The value of

materials decreased 29.1% compared with 2007 (2008: 5.2 million euros; 2007: 7.32 million euros),

justified mainly by a significant decrease in Ballast (63% less than in 2007) and in Rail (50% less than

in 2007) since there was less need for interventions compared with the previous year. The value of

subcontracts decreased 10.6% compared with the previous year (2008: 52.26 million euros; 2007:

58.44 million euros): Although the value of subcontracts decreased, REFER, through its conservation

and maintenance policy, is committed to endowing greater reliability to the infrastructures and to

implementing new legal provisions to enhance work plans, even if such implies subcontractingvarious specialised works. The following table indicates the percentage of each specialised area in

the total cost of subcontracts:

The reduction in track-related costs,

which consists of 45% of all

subcontracts, is justified by the non-

execution of chemical weed spraying,

brush clearing to prevent fires and

heavy mechanical compactionactions. On the other hand, the

maintenance contract for the Beira

Alta Line Track was valid only for the first

half of 2008. It is expected that identical services will start to be rendered in 2009 after conclusion of

the respective public tender. Bridge works reduced costs by 68.7% compared with the previous year,

justified by fewer contracts and a higher use of in-house labour.

Personnel costs for conservation and maintenance activities increased 8.6% compared with 2007

(2008: 30.8 million euros; 2007: 28.36 million euros). This increase was based on various factors, of

which the main one was the personnel assigned to this activity (12.1%). Other increases included the

Companys Agreement for a Career System whose greatest impact took place precisely in 2008,

whereby wages also increased by over 2%, higher training expenses and some social benefits. Note,

however, the nearly 6% reduction (43,000 euros) in overtime work.

In infrastructure management activities, the average cost per employee decreased 3.1% in 2008,

mainly due to a less significant rise in personnel costs when compared with the higher number of

personnel.

(10^6 euros)

2008200820082008 2007200720072007

(1)(1)(1)(1) (2)(2)(2)(2)%%%%

(1) / (2)

TrackTrackTrackTrack 23,73 28,73 -17,4%

CatenaryCatenaryCatenaryCatenary 5,94 5,72 3,9%

Construction and lowConstruction and lowConstruction and lowConstruction and lowvoltagevoltagevoltagevoltage

9,21 7,90 16,6%

TelecommunicationsTelecommunicationsTelecommunicationsTelecommunications 9,99 10,27 -2,7%

SubstationsSubstationsSubstationsSubstations 1,77 2,11 -15,8%

BridgesBridgesBridgesBridges 1,02 3,25 -68,7%

Other subcontractsOther subcontractsOther subcontractsOther subcontracts 0,60 0,47 28,6%

TotalTotalTotalTotal 52,26 58,44 -10,6%

ChangeChangeChangeChangeSpecialtiesSpecialtiesSpecialtiesSpecialties

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NNNNATIONALATIONALATIONALATIONAL RRRRAILWAYAILWAYAILWAYAILWAYNNNNETWORKETWORKETWORKETWORKCCCCONSERVATION ANDONSERVATION ANDONSERVATION ANDONSERVATION AND MMMMAINTENANCEAINTENANCEAINTENANCEAINTENANCEAAAACTIONSCTIONSCTIONSCTIONS

During 2008, the company maintained its guideline principle to guarantee good infrastructure

availability rates in order to minimise the schedule offer, thus ensuring a quality service to the

operators. As such, a number of actions were carried out, of which the following are highlighted:

Corgo Line PK 10.800: Intervention to the embankment

This embankment had to be repaired since it consists of very fragmented and altered shale

and whose slope gradient, in the event of a landslide, would deposit debris on the railway

track.

Cceres Branch Line PK 210.800: Removal of Unstable Boulders

Corgo Line LC at km 7.225 (Alvaes): Improvement of the LC visibility

By transforming the Alvaes station into a stop, work was carried out to improve the visibilityof the

Refer 2008

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