The Committee for Transport and Telecommunications of the Council of States (KVF‑S) has concluded its deliberations on the total revision of the Goods Transport Act (GüTG). Like the Federal Council, it wants to improve the framework conditions in favour of multimodal logistics chains. However, SBB Cargo’s current behaviour, with massive price increases and a reduction in services, contradicts these efforts and puts shippers in a dangerous dilemma.
This is the issue:
- What has happened so far
- A clear yes to multimodality and competition
- Controversial behaviour of SBB Cargo
- The Confederation has a duty
- Together out of the dilemma
What has happened so far
We have already reported in detail on the KVF‑S’s initial proposals on the Federal Council’s dispatch on the Freight Transport Act (total revision of the Federal Act on Freight Transport by Rail and Shipping Companies) in our blog post ‘Now or never: groundbreaking debate on Swiss rail freight transport’. As communicated on 21 June 2024, the preliminary consultation committee wants to strengthen competition in freight transport in a targeted manner, regulate RailCom’s responsibility for enforcing a non-discriminatory offer in single wagonload transport (EWLV) and specify the content of the guidelines for rail freight transport as the basis for the EWLV service agreement.
A clear yes to multimodality and competition
The Council of States Committee has now completed its detailed deliberations. In its latest media release dated 20 August 2024, it calls on the legislator to stipulate in the regulations that loading contributions are passed on to shippers and recipients and that internal company services are made transparent and monitored.Finally, a majority of the committee suggests that an extension of the EWLV subsidy should be decided by Parliament and not by the Federal Council. In this way, the KVF‑S would like to ensure that the financial competence and the decision on a possible extension of support are at the same level
Controversial behaviour of SBB Cargo
Shippers’ tempers are currently running high over the behaviour of the SBB subsidiary SBB Cargo, which clearly runs counter to the efforts of the KVF‑S and the Federal Council’s previous statements. The monopoly provider demands a surcharge of 20% to 60% for its services – quite naturally and without cost transparency or the possibility of reducing costs from the system together with the rail freight operators. Even if the GüTG is amended as proposed and the Council of States approves the proposals of the KVF‑S, there is an acute danger that shippers will shift their transport operations to the road on a large scale. As such a strategic reorientation does not happen overnight, they will adapt their logistics concepts over the next two years. In this case, both the bill itself and the federal funding required for it would be obsolete – as would a parliamentary debate on the matter in the 2024 autumn session.
The federal government has a duty
In order to avoid unjustified market discrimination and a shift to the road, shippers could also orientate their logistics concepts towards alternative rail services offered by innovative and courageous rail freight companies and shift their transport volumes from a state monopoly to market-based competition. This would be in line with the aim of the KVF‑S, which calls for more competition through service agreements and revised guidelines on EWLV. It is therefore not insignificantly the responsibility of the federal government to initiate appropriate measures in the ordering process as soon as possible, to invite private freight railways to submit offers and to support them in their development.
Together out of the dilemma
The industry must find a way out of the current dilemma before the debate escalates. It is now up to the industry players and the federal government to work together to enable more competition and fundamentally modernise the EWLV. To do this, they must work hand in hand to change the organisation of the EWLV system, open it up more to third-party providers and develop it further on an equal footing. The private sector has already come up with some attractive solutions. If Parliament says yes to the promotion of EWLV and thus strengthens intramodal competition, shippers and rail freight companies could refrain from defiant reactions. Instead, they could – together with the SBB – seize the opportunity to finally break away from the monopolistic EWLV and develop a self-economic, broad-based network offer.
