Portuguese distributor VASP has won a 2.3 million euro government contract to maintain nationwide press distribution across Portugal for the next three years.
The company, owned by businessman Marco Galinha, secured both regional lots in an international public tender launched by the Portuguese government in June 2026.
The deal ensures that printed newspapers and magazines will continue reaching low-density population areas across the country. Eight months earlier, VASP had announced plans to reconsider distribution routes in eight inland districts due to severe financial pressures, threatening to leave those regions without physical press deliveries.
VASP operates as Portugal's principal media distribution network, supplying daily newspapers and periodicals to thousands of kiosks, newsstands, and retail outlets nationwide. Marco Galinha, who controls the company, is a prominent Portuguese entrepreneur with extensive investments across national media enterprises.
Government tender and cost savings
The international tender was divided into two distinct regional packages, covering the northern and southern regions of Portugal. VASP submitted winning bids for both lots, securing the entire three-year operation for 2,288,468.70 euros.
Under the contract terms, annual state expenditure will total 762,822.90 euros. According to the preliminary tender report, the winning bid came in about 78 percent below initial projections, generating 8.2 million euros in savings for taxpayers.
Initial projections established in November 2024 under the government's Media Action Plan, known as PACS, had capped public funding at 3.5 million euros per year, or 10.5 million euros over three years. Those earlier limits were calculated using financial data submitted by the incumbent operator.
A ministry source explained that after the minister reviewed all operational information, officials determined that the service required only about one million euros annually. The source added that competitive bidding drove the final cost down further to 2.2 million euros over three years, down from the original 10.5 million euro estimate.
Coverage for inland districts
The government launched the procurement process in early June 2026 to guarantee press delivery in low-density rural areas and introduce competition into a market historically dominated by a single provider. The process drew two competing bidders, with rival firm Pergaminhos Flash competing alongside VASP.
Distributing physical newspapers to interior municipalities in Portugal presents persistent economic challenges due to sparse populations, long road distances, and declining print readerships. Public financial support was introduced to prevent rural communities from becoming news deserts.
Former Socialist Party leader António José Seguro had previously called on both the government and VASP to protect print delivery routes in interior regions, emphasizing that rural residents require equal access to information.
Final contract approval process
The tender process is now moving through its final administrative stages. Procurement officials are reviewing formal submissions and comments presented by the competing companies following the publication of the preliminary report.
Once the review concludes, officials will approve the final report, issue the definitive award, and execute the formal contracts for both regional lots.
