Federal Council wants to provide more financial support for rail freight transport

Published: Wednesday, Jan 10th 2024, 16:40

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Transporting goods by rail within Switzerland barely covers the costs any more. The Federal Council is therefore proposing a reform package that provides for increased state support. The additional expenditure of several hundred million francs should be budget-neutral.

On Wednesday, the federal government adopted the dispatch on the total revision of the Freight Transport Act for the attention of parliament. The aim is to reduce the number of lorry journeys and drive forward the digitalization of rail freight transport. Rail freight currently accounts for around forty percent of the total.

"If we do nothing, freight traffic that does not cross the Alps will increasingly take place on the roads," Transport Minister Albert Rösti told the media in Bern. "This would lead to even more traffic jams and would be highly problematic because it would also put pressure on climate targets."

The federal government already supports investments in freight transport facilities and technical innovations. However, in contrast to transport through the Alps, financial support for rail freight services in the lowlands has not been provided to date. This is now set to change.

"No longer viable"

During a transitional period, for example, the single wagonload traffic currently operated by SBB Cargo is to receive financial support. This accounts for a significant proportion of rail freight transportation. Individual wagons or groups of wagons are collected, formed into trains and taken to marshalling yards. There, new trains are put together depending on the destination region of the loads.

That is costly. "Without reform, single wagonload transport would no longer be viable," said Rösti. A temporary solution with the support of the federal government is therefore needed. This concept was met with an open ear during the consultation process. A majority of the parties, associations, cantons and also the logistics sector had spoken out in favor of it.

Specifically, the Federal Council plans to provide financial support for single wagonload transport for a limited period of eight years, with the option of an extension for a further four years. It is requesting CHF 260 million for the first four years. Transhipment and loading contributions and compensation for the uncovered costs of the ordered freight transport services for a total of CHF 60 million per year are planned for an indefinite period.

No more manual maneuvering

The Federal Council wants to use the public funds to bridge the time until the digitalization of rail freight transport has progressed. The mechanical coupling of vehicles and their brake air lines is to be automated in future. The current manual documentation and testing processes in train preparation are also to be largely digitalized.

The central element here is the digital automatic coupling (DAC). Freight wagons and locomotives are to be converted to this system across Europe by around 2033. "We want to lead the way together with Austria and Germany," said Rösti. In Switzerland, around 15,000 wagons and 520 locomotives are to be equipped with the DAK. The Federal Council intends to support the conversion with a one-off investment contribution of 180 million Swiss francs.

Finally, the Federal Council wants to create the legal basis for the promotion of fossil-free drives in freight shipping and for shunting locomotives. "More can be done to ensure that different transport routes work better together," says Rösti. With this in mind, the Federal Council wants to create a legal basis for financial support for port infrastructure for freight transport on the Rhine.

Financed by heavy vehicle charge

The additional federal expenditure is to be fully compensated so that the general federal budget does not incur any additional burden. Part of the revenue from the performance-related heavy vehicle charge (LSVA), which would otherwise flow into the Rail Infrastructure Fund (BIF), is to be used for this purpose. "This is money from the freight sector for the freight sector," said Rösti.

According to the Minister of Transport, the financing of rail infrastructure maintenance and expansion via the BIF remains guaranteed. "The fund has been sufficiently replenished." Only around 2 percent of the BIF deposits are involved. "That is manageable."

Rösti emphasized that the additional funds would not be distributed according to the watering can principle. Performance agreements with the recipients of the funds are planned.

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