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Gotthard Base Tunnel (#9): Avoid shifting traffic back to the road

Gotthard Base Tunnel (#9): Avoid shifting traffic back to the road

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The goods train derailment on 10 August 2023 caused serious damage to the Gotthard Base Tunnel. SBB therefore intends to massively reduce the capacity of sustainable rail freight transport in favour of leisure traffic at weekends with the timetable change on 10 December 2023. This could lead to a shift of up to 15% of rail freight back onto the road.

This is the issue:

  • New timetable concept cancels freight transport routes
  • Statutory modal shift target jeopardised
  • Alternative for passenger transport available
  • NEAT gradually misused for other purposes
  • No dialogue at eye level
  • Avoiding a shift back to road transport together

 

New train path concept cancels freight transport routes

According to the media update of 2 November 2023, SBB assumes that the Gotthard Base Tunnel will not be fully available for passenger and goods trains again until September 2024. The repair work is likely to take far longer than originally expected. SBB officials have announced that with the December timetable change, significantly more and faster passenger trains will be travelling through the Gotthard Base Tunnel at weekends. Among other things, they are cancelling a time slot for freight traffic from 7.30 to 9.00 a.m. on Friday mornings and allocating it to passenger traffic.

Statutory modal shift target jeopardised

The unauthorised train path concept has serious consequences for the national modal split. One of our members assumes that 10% to 15% of combined freight transport consignments will be shifted back to the roads and that supplies to Ticino can no longer be fully guaranteed at weekends. Construction work can also not be carried out in the aforementioned time window.

This development contradicts Switzerland's policy of modal shift. According to this policy, the Federal Council wants to shift transalpine freight transport from road to rail. The statutory target of 650,000 lorry journeys was already clearly missed in 2022: 880,000 lorries were still travelling through the Swiss Alps.

Alternative for passenger transport available

For representatives of the shipping industry, SBB's new route concept is all the more absurd as there is a sensible alternative for passenger transport: from an ecological perspective in particular, leisure travellers should use the mountain route at weekends and leave the Gotthard Base Tunnel to the goods trains. After all, due to their heavy loads, they consume much more electricity over the mountain route than passenger trains. Shippers depend on a reliable transport infrastructure seven days a week to supply goods to Switzerland.

NEAT gradually misappropriated

The Gotthard Base Tunnel is part of the New Rail Link through the Alps (NRLA). It was designed for freight transport. The common goal of the European Union and Switzerland with the NRLA was and is to promote freight transport by rail. The project was realised at a cost of CHF 23 billion and 55% of it was financed by the performance-related heavy vehicle charge (LSVA). By restricting the urgently needed train paths for freight transport, the NRLA is once again being misused.

No dialogue at eye level

According to SBB, "... careful consideration was given to the allocation of train paths through the Gotthard Base Tunnel during the repair work in collaboration with representatives of the freight transport sector and passenger railway companies as well as the independent train path allocation body." However, the new train path concept was developed without the freight transport industry and its customers. The subsequent dialogue also proved to be tough. In addition, the voice of SBB Cargo was missing at the media conference on 2 November 2023. It is unclear whether and how the concerns of the freight transport sector were taken into account within the company. The shipping industry is alarmed by this one-sided approach and sees the previously constructive cooperation with SBB being jeopardised.

Working together to avoid a shift back to the roads

We at the VAP strongly urge SBB to involve all those involved in rail freight transport in the planning of train path allocation and to refrain from making one-sided statements about the smooth handling of freight traffic through the Gotthard Base Tunnel. These favour a premature migration of freight transport to the road, which must be avoided at all costs. After all, it is generally difficult to reverse such a move. SBB should not play freight and passenger transport off against each other and favour road transport in the process.

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20.11.2023 | Freight Transport Industry Operations Politics , ,

by | Nov 20, 2023 | Freight Transport Industry, Operations, Politics

The goods train derailm­ent on 10 August 2023 cau­sed serious dama­ge to the Gott­hard Base Tun­nel. SBB the­r­e­fo­re intends to mas­si­ve­ly redu­ce the capa­ci­ty of sus­tainable rail freight trans­port in favour of lei­su­re traf­fic at weekends with the...
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Partial revision of SBBG: responsibility and market liberalisation further delayed

Partial revision of SBBG: responsibility and market liberalisation further delayed

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The Committee for Transport and Telecommunications of the National Council (KVF-N) unanimously supports the proposal for the financial stabilisation of the Swiss Federal Railways (SBBG). In contrast to the Federal Council, it is of the opinion that there is no need to change the system for granting vault loans to SBB. In doing so, the KVF-N also disregards all of the VAP's recommendations.

This is the issue:

  • 3 billion financial injection for SBB
  • SBBG partial revision referred to the National Council
  • The industry's voice remains unheard
  • Still no market liberalisation in sight

 

3 billion financial injection for SBB

In its report of 16 December 2022 on motion 22.3008 «Supporting the implementation of SBB investments and a long-term vision in Covid-19 times», the federal government proposes to cover SBB's deficits in long-distance transport with a one-off capital injection of an estimated CHF 1.25 billion. It also wants to ease the track access charges for long-distance transport with a further CHF 1.7 billion. It is also proposing a revision of the financing instruments.

SBBG partial revision referred to the National Council

The KVF-N has unanimously referred the bill to amend the SBBG to the National Council. The majority of the committee also rejects a change in the system of financing instruments, as budget loans, unlike treasury loans, are subject to the debt brake. It is of the opinion that the resulting competitive situation with other federal expenditure is not desirable with regard to public transport services. The National Council will decide on the KVF-N proposal in the 2023 winter session.

Voice of the industry remains unheard

As published in our media release of 30 March 2023, we at the VAP reject the proposed extraordinary restructuring of long-distance transport with around 3 billion taxpayers' money. On the other hand, we welcome the proposed correction of the financing instruments, i.e. the waiver of the granting of vault loans to SBB bypassing the federal debt brake. In the blog posts «SBB should take responsibility instead of a CHF 3 billion financial package» and «No stabilisation of SBB despite CHF 3 billion in additional federal funds», we summarise the industry's position and our corresponding arguments.

Still no market liberalisation in sight

If the bill is accepted, the National Council would further consolidate the SBB monopoly in long-distance transport. This is problematic in terms of European policy, as the EU is demanding that Switzerland open up the long-distance transport market. This unfulfilled demand overshadows the negotiations with the EU on the extension of the temporary cooperation with the European Railway Agency ERA for one-stop-shop authorisations and more interoperability between Switzerland and the EU. Compared to EU member states, Switzerland does not yet have full market access; the Swiss railway network is currently not an integrated part of the European interop network. For this reason, the freight transport-related associations Astag, CFS and we at the VAP are calling for a national migration strategy to open up the market in line with the EU. If the National Council votes in favour of the KVF-N motion, it will push this issue even further away.

Addendum 20.12.2023, update from the winter session:
In the winter session, a majority of the National Council agreed to grant the Swiss Federal Railways (SBB) a one-off capital subsidy of CHF 1.15 billion to reduce debt. This amount was already included in the 2024 budget. In contrast, the National Council rejected the Federal Council's proposal to switch from treasury loans to federal budget loans when a certain level of debt is reached. This was based on the argument that applying the debt brake to budget loans could delay the expansion. The chamber also decided to set the appropriate reserve for the railway infrastructure fund (BIF) at a minimum of CHF 300 million, with a maximum of two thirds of the net revenue from the performance-related heavy vehicle charge (LSVA) flowing into the fund. The National Council has thus ignored all of the VAP's recommendations. The bill now goes to the Council of States, which will hopefully take corrective action.

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17.11.2023 | Financing Operations Politics , ,

by | Nov 17, 2023 | Financing, Operations, Politics

The Com­mit­tee for Trans­port and Tele­com­mu­ni­ca­ti­ons of the Natio­nal Coun­cil (KVF‑N) unani­mously sup­ports the pro­po­sal for the finan­cial sta­bi­li­sa­ti­on of the Swiss Fede­ral Rail­ways (SBBG). In con­trast to the Fede­ral Coun­cil, it is of the...
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Gotthard Base Tunnel (#8): Safety and control tasks clearly distributed

Gotthard Base Tunnel (#8): Safety and control tasks clearly distributed

[et_pb_section fb_built="1" _builder_version="4.16" global_colors_info="{}"][et_pb_row _builder_version="4.16" background_size="initial" background_position="top_left" background_repeat="repeat" global_colors_info="{}"][et_pb_column type="4_4" _builder_version="4.16" custom_padding="|||" global_colors_info="{}" custom_padding__hover="|||"][et_pb_text _builder_version="4.23" background_size="initial" background_position="top_left" background_repeat="repeat" global_colors_info="{}"]The Swiss Transportation Safety Investigation Board (Sust) names a broken wheel disc as the cause of the goods train accident in the Gotthard Base Tunnel. In the news report from 19 October 2023, Swiss television SRF took a close look at the maintenance of freight wagon wheels. In it, VAP expert Jürg Lütscher comments on the safety and control tasks of the players involved - and explains them further in this blog post. This is what it's all about:
  • Harmonised safety in the European rail freight system
  • Maintenance work monitored by independent bodies
  • Wheelset inspections in operation and maintenance
  • Two inspection procedures established
  • Responsibilities and regulations clarified
 
Harmonised safety in the European rail freight system
Safety in the European rail freight system is based on a triangle of responsibility consisting of infrastructure managers, railway undertakings (RUs) and wagon keepers with their responsible maintenance centres (ECMs). The specifications and regulations are now largely harmonised throughout Europe. The industry has developed the internationally recognised VPI European Maintenance Guide (VPI-EMG) based on the provisions of the sovereign directives, the applicable technical standards and practical experience. The VPI (Germany), V.P.I. (Austria) and VAP (Switzerland) associations have been pioneering this work since 2007. In 2019, AFWP (France) and UIP (International Union of Wagon Keepers, representing the smaller national interest groups) were added to the group of editors of the VPI-EMG. This set of rules defines both deadlines and the scope of work and standards in a user-friendly manner. It provides maintenance recommendations that each user must check for applicability to their freight wagons, supplement if necessary and approve for their wagon fleet. More than 550 companies, including wagon keepers, ECMs, repair workshops, authorities and universities, currently use the VPI-EMG. More than 260 repair workshops and mobile service teams from 19 European countries use the VPI-EMG on behalf of the relevant ECM.
Maintenance work monitored by independent bodies
The EU safety directive defines two independent procedures. This is to ensure that the specialised work is carried out everywhere with the required level of quality and knowledge:
  • Certification: The companies involved must be certified by independent bodies for security-related activities within the scope of their ECM. They must regularly renew these certificates and allow their customers to view their validity and scope.
  • Auditing: Supervisory authorities carry out risk-based audits of safety-critical processes and quality inspections in railway operations. If they uncover weaknesses, they also monitor their rectification.
Wheelset inspections in operation and maintenance
Wheelsets are considered safety-critical components of a rail vehicle. They are subject to continuous wear during operation and can also be damaged by external influences. When maintaining wagons, the ECM ensures that fully functional wheelsets are used. During operation, the RUs and the train control systems of the infrastructure managers (see blog post «Gotthard Base Tunnel (#2): Automatic train control systems») specifically ensure that no recognisable damage or deviations on wagons jeopardise operational safety. To ensure safe railway operations, the wheelsets must comply with all relevant limit values during the entire operating time. Wheelsets that have been replaced due to deviations or damage are sent to a certified specialist workshop for reconditioning in accordance with the regulations.
Two test procedures established
The SRF news report shows two test procedures for systematic wheelset maintenance. A certified specialist workshop can thus ensure that the wheelsets it repairs do not show any relevant damage in the form of material cracks on delivery. This involves two non-destructive testing methods in accordance with DIN 27201-7, which have become established throughout the industry:
  • Ultrasonic testing: Detection of cracks in the wheel face and flange back area
  • Magnetic testing: Detection of cracks in the wheel centre and wheelset shaft including wheel seat
Responsibilities and regulations clarified
As many goods are transported across borders, internationally harmonised rules and procedures are important in Europe. In recent years, the regulations have been comprehensively updated and improved. Current versions of the EU Safety and Interoperability Directive apply both in all EU states and - via the overland transport agreement - to the Swiss standard gauge network. Based on this, the Swiss railway sector has developed practical standards and maintenance procedures for the main players. Europe-wide common reporting processes and assessment procedures (see blog post «Gotthard Base Tunnel (#7): Sust report provides clarity») ensure that industry players learn their lessons from an operational incident such as that of 10 August 2023 and implement effective improvements in maintenance. [/et_pb_text][et_pb_text _builder_version="4.23" _module_preset="default" global_colors_info="{}"][/et_pb_text][/et_pb_column][/et_pb_row][/et_pb_section]
16.11.2023 | Freight Transport Industry Operations , , ,

by | Nov 16, 2023 | Freight Transport Industry, Operations

The Swiss Trans­por­ta­ti­on Safe­ty Inves­ti­ga­ti­on Board (Sust) names a bro­ken wheel disc as the cause of the goods train acci­dent in the Gott­hard Base Tun­nel. In the news report from 19 Octo­ber 2023, Swiss tele­vi­si­on SRF took a close look at the...
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Revision of the noise limits

Revision of the noise limits

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That's what it's all about:

  • Silence is a precious commodity in densely populated and industrialised areas
  • Federal government has issued regulations on noise abatement
  • FOEN mandated to review existing regulations

The Confederation has issued regulations on noise abatement that lay down framework conditions for industry and transport in particular. The Federal Office for the Environment (FOEN) was mandated by Parliament to review the existing regulations. In the current year, the FOEN is conducting a comprehensive economic assessment (VOBU) of nine possible measures, analysing their noise-reducing effect and economic consequences in connection with traffic noise. The regulations for the construction and licensing of vehicles and aircraft are to continue to be coordinated internationally. The FOEN aims to present the findings transparently to important representatives from industry and the cantons and to discuss implications with them.

The Association of the Freight Industry (VAP) will be actively involved and contribute the industry's perspective. The FOEN will complete the VOBU by the end of 2023 and the Federal Department of the Environment, Transport, Energy and Communications (DETEC) will decide on the further procedure and publish this at the beginning of 2024. We will report on new findings here.

The following focal points are considered:

  • Adjustment of the limit values for road, rail and air traffic noise
  • Adjustment of the assessment period (rest period)
  • Standardisation of the sensitivity levels
  • Simplification of the noise classification regime (restriction of the protection of existing buildings)
  • Dynamisation of noise protection (temporary relief)
  • Clarification of measures (definition of test criteria)
  • Strengthening transparency (disclosure of relief)
  • Strengthening of the polluter-pays principle (compensation for advance payments)
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26.10.2023 | Operations Politics , ,

by | Oct 26, 2023 | Operations, Politics

That’s what it’s all about: Silence is a pre­cious com­mo­di­ty in den­se­ly popu­la­ted and indus­tria­li­sed areas Fede­ral govern­ment has issued regu­la­ti­ons on noise abatement FOEN man­da­ted to review exis­ting regulations The Con­fe­de­ra­ti­on has...
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Gotthard Base Tunnel (#7): Sust report creates clarity

Gotthard Base Tunnel (#7): Sust report creates clarity

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On 28 September 2023, the Swiss Safety Investigation Authority (Sust) published its interim report on the derailment of the goods train in the Gotthard Base Tunnel. In it, it documents the course of the accident and makes initial safety recommendations. The event is now being processed by the responsible international committees. Both the European railway industry and Switzerland are represented here. The report should not be misused for a national go-it-alone.

This is what it's all about:

  • Fatigue cracks caused wheel breakage
  • Further investigation is well concerted
  • Consequential initial safety recommendations
  • Accident clarified - but not yet completely solved

 

Fatigue cracks caused wheel breakage

Fortunately, Sust submitted its interim report very quickly. In it, it identifies the broken wheel disc of the eleventh freight wagon as the cause of the derailment in the Gotthard Base Tunnel. The wagon is registered in Sweden. The damaged wheel is wheel type BA 390 with LL brake pads. All the fractured surfaces show fatigue cracks originating from the tread. They are now the subject of in-depth metallographic examinations by Sust. The Sust report contains no evidence of pre-existing operational defects that could have caused derailment.

Further investigation is well concerted

The incident is now being dealt with by the Joint Network Secretariat (JNS). The aim of this body is an EU-wide harmonisation of all measures taken after an accident or incident in European rail transport. The JNS supports the European Railway Agency (ERA) in organising the exchange of experience between national supervisory and investigative authorities and the industry organisations accredited to ERA. The latter also include the three players in the triangle of responsibility for rail transport: the infrastructure manager (responsible for the infrastructure), the wagon keeper (responsible for the maintenance of the wagons) and the freight railway (responsible for the operation of the wagons). At the same time, Sust triggers a so-called Safety Alert in the SIS information system, which is used by the national supervisory and investigative authorities. And finally, the Swedish wagon keeper deposits a warning message in ERA's Safety Alert IT Tool (SAIT).

Based on these notifications and as part of the coordinated process, all European stakeholders should have access to the published information. It is now up to them to draw the right conclusions in the exchange between national authorities, industry representatives and ERA. Thanks to the Land Transport Agreement, Sust is recognised by ERA as an investigative body, as is the Federal Office of Transport (FOT) as a safety authority. The matter is now being dealt with by the competent international bodies. We consider this fact to be entirely correct and necessary in view of the cross-border use of freight wagons throughout Europe. The responsible bodies will next establish a reference to similar wheel breakages from the past.

Consequent first safety recommendations

The Sust report makes two short-term safety recommendations, which the VAP supports without reservation. In Recommendation No. 183, it advocates that the FOT extend the 2017 "JNS Urgent Procedure Broken Wheels" to the BA 390 series wheelsets. The "JNS Task Force Broken Wheels" set up at that time had reacted to several wheel fractures on the BA 314 and BA 004 wheel types and called for more intensive inspections in operation and maintenance to limit the risks for these wheel types. We also welcome Safety Recommendation No. 184, in which Sust urges the FOT to apply for a new "JNS Procedure" at European level to deal with the wheel breakage on the BA 390 series. This should prevent further similar wheel breakages from occurring.

Accident clarified - but not yet completely solved

The interim report corrects the misleading media coverage of the accident, according to which the derailed wagon 11 also damaged the safety gate to the east tunnel, which weighed about 100 tonnes. According to Sust, it was not until carriage 14 hit the deflecting track at the Faido multifunction station switch that it struck the safety gate. Further investigations are necessary to fully clarify the accident in detail. This includes, for example, analyses of the deflected wagon 14 and the switch. Sust will only provide a complete clarification of the course of events and causes of the accident in its final report. Once this has been published, it is the responsibility of all actors involved in the JNS procedures to draw the right conclusions from it for competitive and safe European rail transport. The recommendations of the Sust final report will be implemented by the entire industry.

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06.10.2023 | Operations , , , ,

by | Oct 6, 2023 | Operations

On 28 Sep­tem­ber 2023, the Swiss Safe­ty Inves­ti­ga­ti­on Aut­ho­ri­ty (Sust) published its inte­rim report on the derailm­ent of the goods train in the Gott­hard Base Tun­nel. In it, it docu­ments the cour­se of the acci­dent and makes initi­al safe­ty...
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Marco Rosso: «Collaborative innovation can contribute to the quality of life and function profitably at the same time.»

Marco Rosso: «Collaborative innovation can contribute to the quality of life and function profitably at the same time.»

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Marco Rosso is Chairman of the Board of Directors of Cargo sous terrain AG (CST). In an interview with the VAP, he talks about interoperability, non-discrimination on the last mile and the logistics of the future. And about how collaborative innovation can contribute to the quality of life of people in Switzerland and function profitably at the same time.

VAP: Mr Rosso, how do you see the relationship between rail freight and CST in the future?

Marco Rosso: Rail and CST are two systems that complement each other. CST cooperates with all modes of transport to jointly absorb the predicted freight traffic growth of over 30% by 2050 in an innovative, sustainable way. Because CST is not suitable for all transports, the company supports the business models of rail, road hauliers and other logistics players with new technology and digitalisation. Only with cooperation (within the framework of competition rules) can interoperability be guaranteed among the most diverse modes of transport and transport companies. Therefore, CST plans to connect to rail, road, ship, air freight and other systems. At the CST hubs, there will be multimodal connections, in particular also a rail connection. In the construction phase, starting as early as 2026 and continuing until 2045, CST will use rail transport to the tune of 2,000 goods trains per year and thus become an important rail customer.

Shouldn't the state create the infrastructure and the operation in the tunnels, as well as the operation of the terminals and the last/first mile would then be free and subject to competition?

CST is a system that only works as a whole because all processes are controlled end-to-end. This is the only way to ensure that the general cargo reaches its destination on time and reliably. For this reason, the system must be managed from a single source and at the same time be connectable to all partner platforms. CST has been planned and conceived as a private-sector project from the very beginning. With this financing concept, it is possible and important to move forward quickly without straining the funds in the federal budget. The investors also include important future customers. They help to develop the system in line with the market. The Confederation has recognised that it would not be expedient to act as a creator itself, but to limit itself to the legal framework. With carefully prepared business plans, competitive prices and the broad investor base that supports the project, CST shows that innovation in freight transport contributes to the quality of life in cities and rural areas and can function profitably at the same time.

Where do you see the biggest challenges in your project?

Such a comprehensive project presents many challenges, for example in planning, legal, environmental, financial and political terms. What distinguishes CST is the model of collaborative innovation - with the inclusion of all stakeholders. The project approaches the challenges pragmatically in stages.

How do you design a non-discriminatory first/last mile?

Our system is planned to be non-discriminatory from the start anyway, without the law requiring it. The following applies throughout: everyone has access to the system with the same price for the same service. But we go even further, for example, by developing CST's city logistics in a collaborative partnership and are open to any cooperation with smaller as well as larger partners, including the railways and the post office. Here, too, our principle is collaborative innovation, which we live by every day.

What is the greatest benefit or motivation of CST for the Swiss population?

The most important effect of CST will be to increase the quality of life for all inhabitants of Switzerland. By showing a way how the logistics of the future can look sustainable, how heavy traffic on the road can be moved away by bundling and pre-sorting in tunnels for all shippers, or how a traffic jam can be avoided for the supply of goods, how to get the best out of the available resources in terms of CO2 emissions, noise, etc. The precious space on the surface should primarily belong to the population. CST favours the expansion of infrastructure as well as renewable energies in Switzerland. CST is a privately financed driver of innovation for the benefit of the Swiss economy and for quality of life in cities and villages by guaranteeing security of supply and thus increasing prosperity in Switzerland.

Are there any points that you think we should still let our members know about?

There are decisive decisions and discussions ahead, especially against the background of the political debates on freight transport. We are firmly convinced that with an entrepreneurial attitude we can make an effective contribution to maintaining Switzerland in the 21st century as an excellent business location with a high quality of life, also for future generations. We participate in this work with enthusiasm and commitment.

Mr Rosso, thank you very much for the interview.

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27.09.2023 | Innovation Interoperability Operations

by | Sep 27, 2023 | Innovation, Interoperability, Operations

Marco Rosso is Chair­man of the Board of Direc­tors of Cargo sous ter­rain AG (CST). In an inter­view with the VAP, he talks about inter­ope­ra­bi­li­ty, non-dis­cri­mi­na­ti­on on the last mile and the logi­stics of the future. And about how col­la­bo­ra­ti­ve...
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Strengthen fair competition between federal and private companies

Strengthen fair competition between federal and private companies

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On 15 September 2023, the Federal Council instructed the Federal Department of Economic Affairs, Education and Research (EAER) to submit an amendment to the Corporate Governance Guidelines by the third quarter of 2024. In doing so, it wants to strengthen fair competition between state-owned enterprises and private-sector companies.

This is what it's all about:

  • Owner's strategy and corporate governance guidelines as a steering instrument
  • Parliament has called for fair competition
  • Worrying monopolisation of local delivery services
  • Further cross-financing tendencies evident
  • A fight with unequal stakes
Ownership strategy and corporate governance guidelines as a management tool

Federal companies are created through the independence of administrative units of the Confederation which, according to the Federal Constitution, carry out monopolised activities. For example, the special-law joint-stock company of the Swiss Federal Railways (SBB) was created in the course of the railway reform in 1999. As the wholly-owned owner, the Confederation steers its numerous federal companies by defining and implementing an owner's strategy and corporate governance guidelines. It also elects the members of the Board of Directors. In addition to its role as owner, the federal government also has other roles: as a regulator, it regulates the market conditions and occasionally even orders public services, for example in regional passenger transport. This inevitably results in certain conflicts of interest. It would be appropriate to examine whether this interweaving of functions is still in keeping with the times and appropriate for single wagonload traffic, and which supervisory body is keeping an eye on how this is handled.

Parliament has demanded fair competition

The private sector's increasing criticism of the behaviour of federal companies, which, on the basis of a constitutional mandate that is often kept very general, continue to expand their original core business and even buy up private companies, was heard in parliament. Thus, the Councils adopted motion 20.3531 "Fairer competition vis-à-vis state-owned enterprises" by FDP Councillor of States Andrea Caroni and the identically worded motion 20.3532 by Die-Mitte Councillor of States Beat Rieder. With the EAER report, the Federal Council now wants to meet the demand of these two motions. It expects proposals on how the departments can more systematically organise and more comprehensively ensure fair competition between federal and private companies in the management of federal enterprises.

Worrying monopolisation of local delivery services

RailCom's Activity Report 2022 reports, among other things, on the survey of freight railways on short-distance delivery services in accordance with Art. 6a of the Freight Transport Ordinance (GüTV). These are services provided by SBB Cargo, which covers local delivery in Switzerland on a virtually monopolistic basis. The RailCom activity report lists a lack of resources as the reason for rejecting local delivery services. However, the respondents suspect that they are disadvantaged in the offers and that different tariffs are in circulation.

Private companies are equally concerned about the monopolisation of SBB Cargo's network offer in the consultation on the draft law "Modernisation of Swiss freight transport" (see blog post "Consultation on rail freight transport in the area: Two variants, many question marks"). They demand a strict demarcation between network services and block train services in terms of remuneration and continued non-discriminatory access to services in local delivery (cf. VAP blog post "Outsourcing the last mile and making it non-discriminatory"). With the help of organisational measures or a legal separation, it must be prevented that certain services provided by the state are cross-financed. This is the case today, for example, with the funding of the SBB pension fund (PK SBB) through the profits of SBB Immobilien.

Further cross-financing tendencies evident

During the consultation on the 2025 train path price revision, Switzerland's freight railways joined forces and gave the Federal Council a negative response to the partial revision of the Ordinance on Network Access (NZV) on 29 August 2023 (see blog post "Train path price revision 2025-2028: Price increase is unfounded"). Only SBB Cargo, which is fully integrated into the SBB Group and kept on a short leash, was left out. Since the Federal Office of Transport refers, among other things, to falling train path revenues in the train path price revision, the impression is created that this is a case of hidden cross-financing by SBB, which of course SBB Cargo is not allowed to criticise.

The bill drafted by the Federal Council "Amendment of the Federal Act on Swiss Federal Railways SBBG - sustainable financing of SBB" of 15 September 2023 also corresponds to a blatant interference in free competition. According to this, SBB is to benefit from a capital subsidy of CHF 1.25 billion. The exact use of these funds remains unclear and there is a lack of conditions that could change this in the future. Subsidiary SBB Cargo, which also received extensive financial support in the aftermath of the Covid pandemic, also benefits from this capital injection. It is about to conclude a performance agreement for the compensation of its network traffic, which it obviously cannot handle on its own. The private sector players, on the other hand, did not receive Covid funds, nor do they have substantial non-operational resources and stakes that they could sell off to strengthen their investment capacity.

A fight with unequal stakes

The Federal Council's self-evidently unequal treatment of state-owned and private-sector companies is conspicuous - and regrettable. Unfortunately, this does not create healthy competition in rail freight transport, which strengthens its innovative power and efficiency. Both are essential if the market players want to retain existing customers and win new ones. This in turn would be necessary to achieve a sustainable modal shift and to integrate rail into multimodal supply chains in the future. And to create new, future-oriented jobs.

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19.09.2023 | Financing Politics

by | Sep 19, 2023 | Financing, Politics

On 15 Sep­tem­ber 2023, the Fede­ral Coun­cil ins­truc­ted the Fede­ral Depart­ment of Eco­no­mic Affairs, Edu­ca­ti­on and Rese­arch (EAER) to sub­mit an amend­ment to the Cor­po­ra­te Gover­nan­ce Gui­de­lines by the third quar­ter of 2024. In doing so, it wants to...
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REVISION OF THE RAILWAY ACT: FULL EFFECT MAY NOT MATERIALISE

REVISION OF THE RAILWAY ACT: FULL EFFECT MAY NOT MATERIALISE

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On 12 September 2023, the National Council approved the revision of the Railways Act (EBG), following its unanimous approval by the Council of States in the 2023 summer session. However, the revision of the Railways Act cannot be fully implemented until the 4th EU railway package is included in the land transport agreement or the transitional solution with the EU is extended. Inefficiencies could therefore remain.

That's the point:
  • What has happened so far
  • Switzerland has adopted three EU railway packages
  • Revised EBG creates equivalent conditions
  • Ordinances must also be adapted
  • Inclusion of the 4th EU railway package in the Land Transport Agreement necessary
 
What has happened so far

The 4th EU railway package has been in force since 16 June 2019 and the EU Railway Agency (ERA) is now responsible for issuing uniform safety certificates and approvals for rolling stock for cross-border traffic. In the 2023 summer session, the Council of States approved its committee's request to amend the Railways Act (implementation of the technical pillar of the 4th EU railway package).

The 4th EU railway package contains three key elements:

  1. The applicable regulations are to be systematically harmonised in all participating countries. This is achieved through institutionalised entry into force procedures for the technical specifications for interoperability, TSIs and their updates. This means that TSIs published by the EU Commission are now directly valid in all countries; national implementation processes are no longer required.
  2. ERA monitors the removal of obsolete national regulations by the responsible national supervisory authorities.
  3. ERA now coordinates the authorisation procedures and issues uniform, cross-border operating licences.

ERA operates the online vehicle authorisation portal "One Stop Shop". It works closely with the national supervisory authorities when checking authorisation dossiers. Today, an application for authorisation can be made and the corresponding dossier submitted in ERA's "One Stop Shop". The ERA examines the dossier in consultation with the national supervisory authorities involved and issues an operating licence that is directly valid in all the countries applied for.

Switzerland has adopted three EU railway packages

Switzerland has adopted the relevant technical provisions of the three EU railway packages as part of the land transport agreement with the EU. It already sits as an observer on the relevant committees for the ongoing development of interoperability and co-operates with the ERA. It has not yet been possible to join the ERA.

Revised EBG creates equivalent conditions

The technical pillar of the 4th EU railway package includes the revision of the requirements for interoperability (Directive 2016/797) and railway safety (Directive 2016/798). It also includes the further development of the ERA into an EU supervisory authority with the One Stop Shop for standardised procedures (see blog article "Switzerland faces isolation in international rail transport"). The revision of the Railways Act lays the foundations for implementing the technical pillar of the 4th railway package. Accordingly, all interoperable Swiss railways are to be subject to the same conditions as EU member states and access to the simplified authorisation procedure is to be opened up via ERA.

Ordinances also need to be amended

On the basis of the amendments to the EBG, the FOT can establish the necessary conformity with the EU directives in a second step at ordinance level. It has therefore already prepared the corresponding draft amendments to the ordinances and had them reviewed by the EU Commission - with a favourable result. Switzerland has thus independently created the basis for the equivalence of its legislation with that of the EU.

Inclusion of the 4th EU railway package in the land transport agreement necessary

With the implemented revision of the EBG, Switzerland has gained valuable time. After all, it usually takes several years for a revision of the law to come into force. In this case, the national legal framework is already in place. However, the inclusion of the technical pillar of the 4th EU railway package in the Land Transport Agreement and accession to the ERA are necessary for it to take full effect. Neither is foreseeable for the time being in the context of the faltering negotiations between the EU and Switzerland. The EU requires an agreement on the framework agreement and the opening of passenger transport in Switzerland (part of the 3rd EU railway package). The latter has so far failed to materialise; all attempts by the FOT to make concessions by softening the market partitioning by Switzerland have so far been unsuccessful.

Full interoperability and a fundamental simplification of authorisation procedures reduce administrative and operational costs. This is fundamental for safe and competitive rail (freight) transport and thus for a successful modal shift.

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13.09.2023 | Interoperability Politics , ,

by | Sep 13, 2023 | Interoperability, Politics

On 12 Sep­tem­ber 2023, the Natio­nal Coun­cil appro­ved the revi­si­on of the Rail­ways Act (EBG), fol­lo­wing its unani­mous appr­oval by the Coun­cil of Sta­tes in the 2023 sum­mer ses­si­on. Howe­ver, the revi­si­on of the Rail­ways Act can­not be fully...
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Gotthard Base Tunnel (#6): FOT pragmatically supports freight traffic

Gotthard Base Tunnel (#6): FOT pragmatically supports freight traffic

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After the freight train accident in the Gotthard Base Tunnel, the Federal Office of Transport (FOT) is promoting rail freight transport with gripping measures: The tunnel may only be used for goods trains. The compensation per train driven in unaccompanied combined transport (UCT) will soon be increased to up to CHF 1,100. We, as the association of the shipping industry, would like to express our sincere thanks for this. By the way: our vote also applies to foreign shippers.

This is what it's all about:

  • Gotthard base tunnel only open for freight railways
  • Higher compensation for transalpine UCT
  • The VAP says thank you

 

Gotthard Base Tunnel open for freight trains only
Since the reopening of the east tunnel of the Gotthard base tunnel, it has been available exclusively for freight traffic. Around 100 train paths are possible every day. A further 30 trains per day run through the mountain section. This means that transalpine rail freight traffic has a total of 130 train paths at its disposal every day. By comparison: in 2022, an average of 120 trains crossed the base tunnel every day.

Thanks to this measure, the freight railways can handle rail freight traffic practically without restrictions. Admittedly, the routing over the mountain route is associated with considerable additional expense. But it mainly affects domestic traffic that is not dependent on the 4-metre corridor.

Higher compensation for transalpine UCT
The FOT is committed to transalpine rail freight traffic and in particular transit traffic (see "The FOT strengthens rail freight traffic through the Alps"). The compensation per train travelled in UCT will be increased by CHF 200 to up to CHF 1,100 in the coming weeks. The FOT also does not want to reduce the compensation per consignment for 2024, but will introduce a symbolic reduction from CHF 1 to CHF 57 per consignment. In this way, the FOT is supporting transalpine UCT in a very pragmatic way. Against the background of the difficult construction site situation on the access routes and the tense economic situation, the FOT is refraining from continuing the previous reduction path for compensation in UCT.

The VAP expresses its thanks
The FOT deserves a big thank you for this pragmatic support. It strengthens the efforts of the entire industry to make the capacity restrictions on both the Gotthard and Lötschberg axes as bearable as possible in a targeted manner and by joining forces. We see it as a sign of a joint shift policy in transit traffic.

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07.09.2023 | Financing Operations , ,

by | Sep 7, 2023 | Financing, Operations

After the freight train acci­dent in the Gott­hard Base Tun­nel, the Fede­ral Office of Trans­port (FOT) is pro­mo­ting rail freight trans­port with grip­ping mea­su­res: The tun­nel may only be used for goods trains. The com­pen­sa­ti­on per train dri­ven in...
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Train path price revision 2025–2028: Price increase is unfounded

Train path price revision 2025–2028: Price increase is unfounded

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The Federal Council plans to increase the train path price in freight transport from 2025. In detail, it wants to raise the basic price for wear and tear by almost 20%; on the grounds of uncovered weight-dependent marginal costs in this area. We reject this unjustified price increase. It accelerates the ongoing modal shift to the roads and contradicts the Federal Council's modal shift objective.

This is the issue:

  • Track access charges not derived transparently
  • Traffic losses prohibit price increases
  • Respect the legal principle of cost recovery and the polluter pays principle
  • Incentive for low-wear freight wagons reversed
  • Make infrastructure managers more accountable

 

Track access charges not derived transparently
The explanatory report of the Federal Office of Transport (FOT) of June 2023 is neither transparently designed nor comprehensibly justified. The reasons for the current determination of the train path price remain completely unclear. Since the FOT refers, among other things, to falling train path revenues, the impression is created that this is a hidden cross-financing of the SBB. Against the background of the "Sustainable Financing of SBB" bill and the reduction of the contribution margin in SBB passenger traffic envisaged therein, this justification is unreasonable for the representatives of freight traffic. Our negative response to the above-mentioned bill can be found in our hearing response of 7 March 2023 and in our blog post "SBB should take responsibility instead of 3 billion financial package".

Traffic losses prohibit price increases
A price increase is unacceptable in view of the traffic losses in domestic, import, export and transit traffic and the significantly cheaper train path prices in the European environment. Shippers have been exposed to drastic price increases for years, especially in wagonload traffic. These are justified by exogenous factors such as train path prices.

Respect the legal principle of cost recovery and the polluter pays principle
The FOT justifies the price increase with the legal principle of cost recovery. This would be upheld even in the event of a price reduction in freight transport. On the contrary, a price reduction is in line with the polluter-pays principle, since freight traffic pays the standard marginal costs of an averagely developed network, which is mainly geared to the needs of passenger traffic. Shippers do not notice the efforts made by the infrastructure managers to build and maintain the infrastructure more cheaply.

Incentive for low-wear freight wagons twisted
The so-called wear factor is supposed to serve as an incentive to use low-wear rolling stock. In the meantime, the opposite is the case: the Federal Council is encouraging the industry not only to pay ever higher track access charges, but also to invest additional financial resources in low-wear rolling stock.

Holding infrastructure managers more accountable
The presented train-path price revision goes easy on the infrastructure operators. As representatives of the siding and terminal operators, who are directly affected by the planning, construction and maintenance costs of SBB Infrastructure in centralised sidings, we observe considerable inefficiencies and an almost shameless handling of financial resources. This is most likely equally true for the public network. The federal government should therefore also oblige infrastructure managers to contain costs.

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06.09.2023 | Financing Network Politics ,

by | Sep 6, 2023 | Financing, Network, Politics

The Fede­ral Coun­cil plans to increase the train path price in freight trans­port from 2025. In detail, it wants to raise the basic price for wear and tear by almost 20%; on the grounds of unco­ver­ed weight-depen­dent mar­gi­nal costs in this area. We reject this...
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