Plans to revive the Peloponnese railway are facing a major setback. The Hellenic Railways Organization (OSE) is reportedly being forced out of its historic headquarters on Karolou Street in Athens, while its narrow-gauge railway network risks permanent removal to make way for a 288-kilometer cycling path. Both projects are being pursued under the new transitional OSE administration, with the Technical Chamber of Greece (TEE) playing a central role.
OSE Headquarters Under Threat
The OSE building at 1-3 Karolou Street, a landmark occupying an entire city block, is owned by the Greek state under the Ministry of Finance. Although the ministry has not officially decided on selling or leasing the property long-term, sources suggest that the new OSE administration has been informally contacting real estate companies to assess the building’s condition and draft proposals for its “utilization,” either through sale or long-term lease.
Reports indicate that consultants from a prominent real estate firm have been inspecting the building at night, away from employees’ attention, preparing a detailed utilization proposal. Rumors suggest the property could be leased to an Israeli-owned company to convert it into a hotel, despite no feasibility study being conducted by OSE.
The plan may also involve relocating the newly formed OSE entity, Hellenic Railways S.A., to one of two buildings owned by TEE in Marousi. Alternatively, OSE could move to a property it owns in Sepolia.
The OSE headquarters is one of Athens’ most recognizable postwar public buildings. Construction began in the 1960s, and it opened in 1972. Architects Sthenis Molfesis and Thymios Papagiannis incorporated innovative features for the era. With a total area of around 15,400 square meters, it has been a reference point for Greek railways for decades. Part of the building houses OSE’s Historical Archive.
Railway Lines Threatened by Cycling Path Plans
Simultaneously, TEE has issued two controversial tenders (42641 and 42642 /24/9/2025) to select contractors for feasibility studies costing over €4.5 million, aiming to convert the narrow-gauge lines from Megara to Corinth (44 km) and Corinth to Kalamata (244 km) into cycling paths.
OSE officials opposed to the plan warn that this would effectively end efforts to revive the Peloponnese railway network, which was abandoned during Greece’s economic crisis. They also question why TEE proceeded with the tenders using Green Fund money while the network remains officially classified as active.
Contradictions in TEE’s Plan
The Corinth-Argos-Nafplio-Tripoli-Kalamata axis, now targeted for complete removal, is officially part of the national rail infrastructure and included in the EU’s Trans-European Railways Network. It is designated as a suburban-regional line in Greece’s National Spatial Plan (2009) and included in the National Strategic Transport Plan (2019). Between 2004-2009, €80 million was invested in a complete renovation, allowing speeds up to 120 km/h. A 2022 feasibility study confirmed the socio-economic viability of reactivating the Corinth-Argos-Nafplio segment.
Strong Criticism from Former OSE CEO
Former OSE CEO Dimitris Karapanos strongly criticized TEE president Giorgos Stasinos for initiating the feasibility studies to remove Peloponnese railway lines. Karapanos called it a “crime against public property and national infrastructure,” expressing shock that TEE is assisting efforts that could dismantle tracks laid in the 19th century under Greek statesman Trikoupis.
He emphasized that as a civil engineer and long-standing TEE member, he was proud of the chamber’s contribution to Greece’s infrastructure development, and he is now deeply dismayed by TEE’s role in the proposed railway dismantling.
