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Sensible modal shift – from shipper to rail forwarder

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In the canton of Zurich, clean excavated material from excavation pits with a volume of more than 25,000 cubic metres must be transported away by rail by the builder-owner from 1 July 2021, otherwise a replacement fee is owed. The companies HASTAG (Zürich) AG, Schneider Umweltservice AG and Eberhard Bau AG have merged to form the newly founded company TerraRail Modalsplit AG as of 8 March 2022 to offer this service.

This is what it's all about:

Canton of Zurich: ordinance on the transport of excavated material and aggregates by rail (BTV).
TerraRail: Provider for transport of excavated material and aggregates by rail.
In the interests of fair competition: invitation to tender for RUs

TerraRail Modalsplit AG offers the transport of excavated material and aggregates by rail at four locations. In doing so, they make use of their many years of experience and the ideal locations with rail connections of the three companies. Traction between the sites and the unloading point(s) is currently provided by SBB Cargo.

The excavated materials are transported by rail from the agglomeration area and deposited or recycled in a landfill. Ideally, raw material such as gravel is transported again directly. The offer also includes the development of a transport concept, which must be submitted with the building application.

TerraRail is currently using SBB Cargo for the transport by rail. However, other RUs were also considered. TerraRail Modalsplit AG acts independently of the providers in the market and obtains several offers during the bidding and production planning process. The most suitable offer is confirmed. Therefore, changing constellations are to be expected in this area.

It is expected that there will be competing offers, as TerraRail's offers are placed under competitive conditions. In fact, several awards have already been made to other suppliers in the market. This indicates the existence of competition.

Rail transport is attractive when the rail infrastructure leads directly from the place of loading to the place of unloading and over longer distances. However, this is rarely the case in the modal split area. As a rule, an additional reloading process is required, which increases the effort and requires loading places. For this reason, from TerraRail's point of view, legal requirements make sense in order to increase the modal split share of rail transport and to relieve the roads. At the same time, TerraRail is working to continuously improve the competitiveness of this transport chain.

The VAP approves of the bundling of the competence of private-sector companies and the organisation of a transport chain based on the strengths of all partners. The three shippers, in their role as specialists in earthworks and mining and operators of suitable transhipment platforms in their sidings and now as rail forwarders, are shifting transports to the railways and relieving the burden on the roads. Competition and the pursuit of real competitiveness compared to pure road transport are viewed positively. It is desirable that shippers have a choice and that supply security is increased by the existence of several rail providers.

The solution found in the canton of Zurich with the replacement levy on builders is a compulsory measure designed in a market economy, where the revenue flows into the general state budget and is not earmarked for a specific purpose. We would welcome a targeted reimbursement to the market players, for example in the form of financial support from the canton for the construction of transhipment platforms or the development of new multimodal logistics solutions.

For other products, a comparable model is much more difficult to implement, as the necessary transhipment platforms are lacking. Here, cantonal transport and spatial planning is called upon to ensure that locations are well connected by road and rail.

In order to promote further positive relocations, the VAP also assumes an advisory role for the cantons. In doing so, the cantons benefit from the association's extensive expertise, many years of experience and far-reaching network, which is firmly anchored in the transport industry.

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21.06.2023 | Operations Cantons, Traffic shift

by blaettler_redaktion | Jun 21, 2023 | Operations

In the canton of Zurich, clean excavated material from excavation pits with a volume of more than 25,000 cubic metres must be transported away by rail by the builder-owner from 1 July 2021, otherwise a replacement fee is owed. The companies HASTAG...

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Back to the future: development of Swiss rail freight transport

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In this tribute, you will learn how rail freight transport in Switzerland is moving persistently towards the future. For many years, innovation was a foreign word for the «brown wagons». But this era is passé. The freight railways are ready for the age of 4.0 and their place on the rails. This is indispensable for security of supply, environmentally friendly transport performance and relieved roads.

That's what it's all about:

Continuously on the rise for 175 years
Provides over a third of the transport services in and through Switzerland
Looking back at past crises and successes
A century ahead in electrification

The transport performance of rail freight in Switzerland has undergone an impressive development since the beginning of the 20th century. According to the Federal Statistical Office (FSO), it totalled about 1.5 billion tonne-kilometres in 1900. Since then, rail has been marked by many crises, some of them far away. Today it accounts for 10.4 billion tonne-kilometres. tonne-kilometres and a 37% share^[1] of the modal split, it is an important pillar of the Swiss transport system. But let's take it one step at a time.

Small country, big performance - still a lot of potential

The transport performance of rail freight has fluctuated over the decades (cf. Figure 1). Since the end of the pandemic, it has been rising steadily again. In transalpine freight transport (transit), there is a transfer obligation based on the article on the protection of the Alps in the Federal Constitution. As a result of the construction of the NRLA, the four-metre corridor and unprecedented financial support for unaccompanied combined transport (UCT), Switzerland had a very high modal split in favour of rail in transalpine transport in 2021, at 74%; the transport performance of rail freight transport was a peak value compared to other countries, at 66% of transit traffic. The overall modal split of 37% rail was also above the international level.

In non-transit traffic, there is no modal shift mandate. Enormous potential lies dormant in domestic transport (2021: 23%), imports (7.5%) and exports (3.5%^[2]), provided that the fundamental modernisation and reorganisation of wagonload transport and the promotion of intramodal competition are implemented^[3]. This includes the automation and digitalisation of the rail system. These put wagonload traffic in the fast lane and make rail fit for intermodal competition and multimodal logistics chains. Sufficiently available infrastructure for the freight railways and more conveniently located logistics sites further accelerate this progress^[4].

Switzerland's transport and infrastructure policy should therefore increasingly focus on the customer benefits of rail as a mode of transport for the shipping industry. The more benefits the Swiss rail freight transport system brings to shippers, the more it will be used - in other words, the more traffic will be shifted. We at the VAP reject an explicit shift of traffic.

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Figure 1: Swiss rail freight transport performance since 1900 (click on the image to enlarge)[/caption]

Uphill and downhill journey with a clear gain in altitude

On 7 August 1847, the first railway line entirely on Swiss soil from Zurich to Baden - popularly known as the «Spanish-Brötli-Bahn»^[5] (cf. Figure 2) - was ceremoniously opened. One of the reasons for the construction of this line: the lords of Zurich had their messengers bring them the puff pastry «Spanisch Brötli» - mainly on Sundays - from a well-known master baker in Baden. The poor servants always had to make their way to Baden on foot shortly after midnight so that they could put fresh rolls on the Sunday breakfast table. The «Spanish-Brötli-Bahn» made it possible to transport goods and people quickly and reliably.^[6]

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Figure 2: With the "Spanisch-Brötli-Bahn", Switzerland gets its first national railway line.[/caption]

The first railways in Switzerland were built on private initiative. They were able to start operating with a concession from the cantons they served. Initially, the Confederation only specified the technical aspects. Later, the Confederation was given more powers to ensure a sensible national network.

In 1857, a railway mail coach was used for the first time in Switzerland by the Schweizerische Nordostbahn on the Zurich-Baden-Brugg line. This was the beginning of Swiss railway mail. In 1859, the route network already had a length of more than 1000 km, there was a continuous connection from Lake Constance to Geneva, to which Bern, Lucerne, Chur, St. Gallen, Schaffhausen and Basel were also connected. In 1882, after the completion of the 15-km-long summit tunnel, the Gotthard railway was able to begin operations.

In 1875, the first law for the construction and operation of industrial sidings was introduced in Switzerland, thus legally regulating the legal relationships for sidings. The referendum of 20 February 1898 marked the end of the private railway age, and from 1902 the newly founded state railway SBB took over the largest railway companies as well as smaller private railways. With nationalisation, responsibility for the further development of the railways passed to the federal government. The takeover of the infrastructure by the SBB was a good step. However, operation on the network was to be characterised by competition.

With the monopolisation of rail transport, it was time in 1912 to establish a representative for the private players. This was the birth of the VAP Verband Schweizerischer Anschlussgleise- und Privatgüterwagenbesitzer - today's VAP Verband der verladenden Wirtschaft - which from then on campaigned for fair competition and the optimisation of economic policy conditions, rail infrastructure and logistics locations. At that time, rail made a decisive contribution to the industrial revolution - the profitable connection soon overtook ship and horse-drawn carriage as the infrastructure grew. Fast transport within Switzerland, but also to Europe, opened up new economic opportunities.

During the First World War, the transport performance of rail freight first rose, before declining by 18% in 1917 and 14% in 1918. These declines can be attributed to the interruptions in production and trade as well as the effects of the Spanish flu. The pandemic at that time affected about half of the Swiss population in two waves and claimed almost 25,000 lives between July 1918 and June 1919. Transport performance recovered in the 1920s before plummeting again in the year of the economic crisis in 1921 and with the New York stock market crash of October 1929.

With the beginning of the Second World War, the freight railway began an upswing, which it owed to the armament economy and political decisions^[7]. Domestic traffic increased, as the now largely electrified railway replaced car and truck traffic, which had been largely paralysed due to a lack of fuel. During the Second World War, the transport performance of the railways declined massively until freight transit traffic almost completely collapsed at the end of the war and the transport performance lost 42% overall.

After the Second World War, the economy recovered and with it the transport performance of the railways. It reached a first record level in the 1970s. This was followed by sharp declines due to the oil price crisis, the 1987 stock market crash, the real estate crisis and the subsequent recession of the 1990s. In 1999, Switzerland launched the first of several steps of the so-called railway reform in the context of the European market opening for UCT and based on EC Directive 91/440/EEC^[8]. The aim: to make the Swiss railway system more efficient and customer-friendly.

The new railway sidings law of 5 October 1990 and the ordinance of 26 February 1992 are intended to give new impetus to the promotion of rail freight transport and to help solve the numerous problems facing freight transport in a future-oriented manner.

In the year 2000, rail freight transport performance was five times greater than in 1950 (+397%). This multiple is all the more impressive given that the share of rail in total freight transport declined massively in favour of road transport precisely in those years. For despite the experience of fuel shortages during the Second World War, the transition to a petroleum-based economy took place after the end of the war.

The New Rail Link through the Alps (NRLA) brought a further boost. With three base tunnels through the Alps and the expansion of the access routes, it brought the north and south of Switzerland and Europe closer together. The Lötschberg base tunnel has been in operation since 2007. The Gotthard Base Tunnel was opened in 2016. In 2020, the NRLA was completed with the commissioning of the Ceneri Base Tunnel.

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Mood 2008-2012

To help you feel the pulse of the times, we have summarised for you the contents of speeches given at our AGMs in 2008, 2010 and 2012:

2008: VAP General Assembly, President Franz Steinegger's presidential address

Swiss transport policy in rail freight transport is characterised by contradictions. On the one hand, millions of Swiss francs are invested in transit traffic between Germany and Italy, when this is handled as combined transport or as a rolling road. On the other hand, in domestic traffic, passenger traffic is subsidised via a misguided train-path price regulation and rail freight traffic is disadvantaged. Moreover, shippers in Switzerland will only receive a flat-rate refund of the HVF if they bring their goods to the railway in a container, which further subsidises transit traffic. The Association of Swiss Shippers (VAP) calls for a comprehensive modal shift policy that also takes ecological criteria into account. To this end, train path prices, access priorities, rail capacities, the application of the polluter-pays principle in route renewals and a needs-based assessment of wagonload traffic must be improved. It is also stressed that the needs of freight transport should not be underestimated in the future development of rail projects.

Read the entire presidential address (in german)

2010: VAP General Assembly, Speech by Moritz Leuenberger

Freight traffic, which is responsible for the transport of goods, is often overlooked by many people. While most do not care about the origin and history of goods, they are often not informed about how transport and logistics are carried out. The text shows that freight transport by rail is disadvantaged compared to passenger transport and often receives too little political support. Public funds are becoming scarcer, while freight transport is increasing exponentially on both road and rail. Leuenberger suggests that the order of priorities on the rail network must be reconsidered in order to strengthen freight transport. The federal government has already taken measures to support freight transport, including ZEB and Bahn2030, he said.

Read the entire presentation (in german)

2012: VAP General Assembly, Speech by Franz Steinegger, President VAP

The President looks back on a long career in transport policy and recalls discussions on various projects such as Rail 2000, the Vereina Tunnel, the Neat and the Alpine protection article. He notes that the growth of passenger and freight transport will increase by 60% by 2030 and that infrastructure must follow the increasing demand for mobility. However, there are financial and environmental limits, and there is the question of whether the necessary infrastructure supply can be provided. The author criticises that politicians and associations prefer to deal with means of control and priorities of use for existing infrastructures instead of looking at the future. In the case of the railways, there are plans such as Rail 2030 and a Strategic Rail Infrastructure Development Programme (STEP) with investments of CHF 42 billion. The roads also have financing proposals. Switzerland invests the most per capita in the railway network in Europe.

Read the entire speech (in german)

From the commemorative paper:

The federal law and the Berne Convention have promoted rail freight in national and international transport. However, rail freight transport is in fierce competition with road freight and passenger transport, which is increasingly weakening the competitiveness of rail freight transport. Swiss transport policy aims to shift freight transport from road to rail, which requires a well-developed infrastructure and fair network access conditions. To remain competitive, intramodal competition and state incentives are also needed, as well as a critical analysis of the organisation of the railway infrastructure and railway companies. The VAP sees it as a challenge and an obligation to balance the modal shift discussion in the interest of Switzerland as a business location and a place to live.

The terrorist attacks in the USA in 2001 were followed by a 4% decline. After the financial crisis of 2008 triggered by the bursting of the US real estate bubble, transport performance fell by 14% in 2009. In the economic crisis in 2012 following the introduction of the minimum euro exchange rate, there was again a decline of 4%. The closure of the Rhine Valley railway (water ingress in the Rastatt Tunnel) resulted in a decrease of 6% in 2017. Comparable to this is the 5% decrease in rail freight transport in the Corona pandemic year 2020. In 2021, rail freight transport increased again by 6.2% (10.4 billion tonne-kilometres).

Electrification: a century ahead

In the early days, railways ran on coal. In 1888, the first electrically powered railway rolled out in Switzerland with the Vevey-Montreux-Chillon (VMC) tramway. Other narrow-gauge railways followed step by step. In 1901, at the general meeting of the Swiss Electrotechnical Association, it was proposed that the electrification of standard-gauge railways should also be examined.

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Figure 3: In 1888, Switzerland's first electrically operated railway rolled out with the Vevey-Montreux-Chillon tramway. © Laurent Croset[/caption]

According to the later Study Commission for Electric Railway Operation, the initiator was "mainly guided by the need to make our country less dependent on the coal-producing countries and to open up a new field of work for the Swiss electrotechnical industry". In its 1912 report to the SBB general management, the study commission itself emphasised "the utilisation of national water power instead of foreign coal" as the main motive "and, if possible, a reduction in the cost of operation". As early as 1906 and 1913, the various sections of the Lötschberg-Simplon axis were electrified and put into operation.

The coal shortage during the First World War drove the electrification of the railway forward. In 1920 the Gotthard railway went into electric operation and by 1928 more than half of the SBB lines had been electrified. Already in the interwar period, Switzerland took a leading role in electrification on an international scale. For military reasons, a further wave of electrification took place during the Second World War. In an extremely short time, another large part of the network was electrified. This was continued after the end of the war to prevent unemployment.

From today's perspective, electrification was a good decision for climate protection, even if this argument did not play a role at the time. Today, climate protection is the main driver for modal shift and electrification of transport. Compared to road transport, rail has about a century's head start here.

^[1] Cf. FOT: Freight transport

^[2] Cf. FOT Goods transport by rail

^[3] Cf. blog article «Improvement of freight transport: it is high time to do something»

^[4] Cf. blog article «Outsourcing the last mile and making it non-discriminatory»

^[5] Cf. «The Spanish Rolls Railway», Peter Affolter

^[6] The term «Badenfahrt» covers two historic events. On the one hand, the first Swiss train journey from Zurich to Baden and, on the other, the legendary folk festival. The latter celebrates its 100th anniversary this year from 18 to 27 August 2023. (badenfahrt.ch)

^[7] It would be questionable whether these decisions are compatible with the preservation of Swiss neutrality. However, we will not go into this further in this article.

^[8] Cf. EC Directive 91/440/EEC on the development of the Community's railways

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15.06.2023 | Freight Transport Industry Innovation Automation, COVID-19, Digitisation, Logistics sites, Modal split, NRLA

by blaettler_redaktion | Jun 15, 2023 | Freight Transport Industry, Innovation

In this tribute, you will learn how rail freight transport in Switzerland is moving persistently towards the future. For many years, innovation was a foreign word for the «brown wagons». But this era is passé. The freight railways are ready for the age...

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SBB Cargo again a fully-owned subsidiary of SBB

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Integration - a rejection of market orientation?

SBB Cargo loses both its logistics experience in the shareholder body and on the Board of Directors, as well as the external chairmanship of the Board of Directors as a symbol of entrepreneurial freedom. Stigmatised as unsuccessful, it is back at the board table. What can customers and relocation politicians expect?

Here's what it's all about:

Logistics companies Planzer, Camion Transport, Galliker and Bertschi give back minority stake
SBB Cargo to be fully reintegrated into SBB Management Board
External chairmanship of the Board of Directors and decision-making powers of SBB Cargo to be abolished
No sign of necessary reorganisation of wagonload traffic
Compensation and interpretation as public service
Traffic losses continue

SBB remains true to itself. The integrated railway separates itself from the minority shareholders in its freight railway SBB Cargo and fully reintegrates them into the group management and its railway family. And the boss, Ms Baer, is replaced by a real estate expert. The reasons for these steps are not explained.

Likewise, it remains unexplained why the WLV cannot be run on its own merits and should continue to be supported with taxpayers' money in the long term. The only thing that is clear is that wagonload traffic is to be transformed into a public service with compensation and that, with "Suisse Cargo Logistics" and the newly founded SBB Intermodal AG, combined transport is also to be taken over by SBB and strategically withdrawn from the market. It is imperative to raise some questions here, such as non-discriminatory and fair conditions for all players.

The resurrection of SBB Cargo as a relic before OBI Organisation of Railway Infrastructure 16.075 probably comes as a surprise not only to the VAP, as a representative of the shipping industry. It is unclear what role politics, DETEC as owner, on-lender of taxpayers' money and supervisory authority played in this decision.

We at the VAP are analysing and taking soundings for the time being. We are seeking dialogue with politicians, DETEC, SBB and the new CEO of SBB Cargo. Based on these findings and hopefully a satisfactory factual situation, we will determine our further course of action and inform you again about this current status.

Values such as competition, market orientation, innovation, non-discrimination, productive modes of transport and self-sufficiency are part of the DNA of the VAP. And ultimately, our "old" ideas such as "branch railways" and a spin-off of the first/last mile service could be the right answer for a strong rail freight system in Switzerland.

Looking back at the year 2018, SRF report: Discussion about freight traffic - SBB Cargo off track (in german)

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12.06.2023 | Financing Member Operations Politics DETEC, SBB Cargo, Wagonload traffic

by blaettler_redaktion | Jun 12, 2023 | Financing, Member, Operations, Politics

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Agenda for the summer session 2023

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In the summer session from 30 May to 16 June 2023, a number of industry-relevant agenda items are on the agenda. Here is a brief overview with our critical appraisal.

This is what it's all about:

More financial resources for the rolling road (Rola).
Yes to simplified approval of rolling stock for international rail traffic
Yes to modernisation and expansion of the Swiss national road network
Yes to the agglomeration transport programme - in step with the national roads

Accompanied combined transport (Rolling Road, Rola)

After the National Council, the Council of States is now dealing with the Federal Council's dispatch of 30 September 2022 on the amendment of the Freight Shift Act and on a federal decree on a payment framework for the promotion of accompanied combined transport (Federal Council business 22.064). Our assessment: There is a lack of technology-neutral promotion of transport, especially also in selected regions with volume potential. Quality control should also be extended to conventional transport. The extension of the RoMo until 2026 in accordance with the BR proposal is undisputed and expedient.

23.024 Railways Act. Amendment (implementation of the technical pillar of the 4th EU railway package)

The Federal Council aims to strengthen cross-border rail transport and plans to simplify the approval of rolling stock for international journeys. An important step in this direction is the introduction of uniform European approval procedures for new rolling stock. Following a positive response in the consultation process, the Federal Council decided in its meeting on 22 February 2023 to amend the Railway Act to create the necessary basis for this. The VAP supports the draft amendment (see blog article: Revision of the Railways Act secures access to the EU rail network), as it enables further steps to be taken to harmonise regulations in the area of rail operations and facilitates the incorporation of this package into the overland transport agreement.

23.032 National Roads Payment Framework 2024-2027, 2023 Expansion Plan for National Roads, Commitment Credit and Amendment to the Federal Decree on the National Roads Network

The Federal Council plans to modernise and expand the Swiss national roads network with a budget of around CHF 12 billion. The expansion is intended to relieve traffic congestion and improve road safety. About 8 billion francs are earmarked for operation and maintenance, while 4 billion francs are to be allocated to targeted expansion projects. These investments are important because the national roads account for a high proportion of the traffic volume. The VAP Association of Shippers supports the bill and emphasises the importance of a sustainable transport infrastructure for multimodality and modal shift. A rejection would mean a relapse into playing off road against rail in past times.

23.033 Federal Decree on the Commitment Credits from 2024 for Contributions to Measures under the Agglomeration Transport Programme

The VAP Association of the Freight Transport Industry supports the federal decree on commitment credits within the framework of the agglomeration transport programme. With a total sum of around 1.5 billion Swiss francs, transport infrastructure projects in Swiss conurbations will be supported in order to create a more efficient and sustainable transport system. These measures contribute to traffic calming, increased safety and improved quality of life in urban centres and at the same time increase their attractiveness as business locations.

However, the VAP Association of Shippers emphasises the need for the bill to enter into force in parallel with the planned expansion of the national road network, as proposed by the Wasserfallen minority. Investment in the national roads is crucial to calm traffic in the centres while providing sufficient capacity in the periphery. In view of this, we recommend that the bill be adopted.

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02.06.2023 | Financing Freight Transport Industry Politics Railway infrastructure, Session, Traffic shift

by blaettler_redaktion | Jun 2, 2023 | Financing, Freight Transport Industry, Politics

In the summer session from 30 May to 16 June 2023, a number of industry-relevant agenda items are on the agenda. Here is a brief overview with our critical appraisal. This is what it’s all about: More financial resources for the rolling road (Rola)....

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Status quo DAK: between wish and reality

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We have supported the digital automatic coupler (DAK) since its beginnings. That is why we are involved in the international umbrella organisation of wagon keepers UIP, the European DAC Delivery Programme (EDDP) and the Swiss DAK migration project. However, much remains to be done at all levels. Here is an interim update on technical and market developments.

Here's what it's all about:

Technology still raises questions
Fair cost-benefit transfer sought
Rising transport prices can bring about a shift back to the roads
Cooperation with Europe: a must
DAK as basis for fundamental system change

Together with the Federal Office of Transport (FOT), SBB Cargo and the Association of Public Transport (VöV), we at the VAP are driving the Swiss DAK project forward. Initial findings from this cooperation were recorded in the concept report "Automation in rail freight transport in Switzerland, starting with the migration to digital automatic coupling" of 24 October 2022. They were also incorporated into the current consultation draft on the future of Swiss freight transport and - with some additions - into the dispatch that the Federal Council is preparing for parliament in summer 2023. Numerous workshops and bilateral discussions with the rail freight sector have given rise to questions, criticisms and possible solutions that now need to be explored in greater depth.

The technology raises questions

Defining the coupling head was a first milestone. Now it is time to develop and test the digital elements. Two technical approaches are being pursued for this. With "Powerline-Plus", the electrical impulses and data are transmitted over the same line with a limited number of contacts. In Switzerland, a consortium of experts will be testing this approach in the coming months. In the "Single Pair Ethernet" (SPE) model, on the other hand, separate lines are needed for power and data transmission.

Questions such as these remain open with both technical approaches:

Under what weather and climatic conditions is reliable operation possible?
Are there downtimes in data transmission during the numerous operational processes (shunting, travel (tight radii, inclines ...)?
Finally, what functionalities does the digital component contain?
How will the upward compatibility be designed, especially from DAK4 to DAK5?
How will the Europe-wide compatibility of the future DAK rolling stock be ensured?
Currently, the European railway sector has only a few experts on this topic, which is a great challenge. There is also a need for clarification on mechanical aspects such as the force effects of the new coupling on the individual wagon types or the installation of the DAK in locomotives due to weight and/or space problems or the safe integration into the vehicle control technology. Questions like these must be answered by 2026.

Cost-benefit transfer can bring about a reverse shift

Investments in DAK migration are considerable, especially for vehicle owners. We assume costs of CHF 20,000 to CHF 40,000 for wagons (depending on wagon type) and CHF 60,000 to CHF 250,000 for locomotives. However, positive effects for the vehicle owners will only become noticeable after complete migration, i.e. after ten years at the earliest. This means that costs will rise in the first few years without additional revenue, which will lead to higher prices for wagon hire. The railway undertakings (RUs) will also have additional expenses during the migration phase of several years due to parallel operation. High price sensitivity could cause a shift back to the roads. We already noticed this effect in 2023 with the passed-on price increases due to increased traction current costs.

We at the VAP are looking for solutions to these challenges:

How can the RUs, as the main winners of the DAK, pass on the efficiency gains and cost savings to the vehicle owners? In monopoly-like structures such as single wagonload traffic, market-based mechanisms do not work.
How high do subsidies (A-fonds-perdu contributions, loans, funds) have to be in order to compensate for the unequal cost-benefit transfer, and how can a major shift back to the road during migration be prevented? What happens if subsidies or subsequent financing to the state-owned RUs are almost completely discontinued with the DAK?

Investing in new rolling stock is certainly conceivable or even necessary for many wagon owners. But the real question is how existing fleets can be efficiently converted. In doing so, it is important to take the following aspects into account without disadvantaging players through no fault of their own:

Even with newer rolling stock, there are difficulties in retrofitting a DAK.
The purchase of new cars has become 50 percent more expensive due to increased raw material prices.
The production of new cars with DAK has to be started after the specifications have been finalised. The number of units is limited at the beginning depending on the type of wagon.
Older rolling stock with a simple conversion causes lower additional costs.
Different vehicle owners own identical types. The conversion of the type vehicle must be independent of the keeper and the high one-off costs must be covered.

Track to track with Europe

The majority of those involved agree: only in close cooperation with Europe can we master sustainable migration. The technical and operational challenges of conversion are similar on both sides of the border. Questions about the conversion process up to successful implementation and financing can only be answered if all experts and decision-makers are at the table. Unfortunately, that is only a handful.

Our contribution from Switzerland is to deal with the national circumstances and to prepare the groundwork well. This includes launching pilot transports; the first DAK test trains have been running in Switzerland since April 2023. We should gather this experience and incorporate it into the pan-European project.

We would like to show that efficient and sustainable innovation at European level is only possible together, using the following examples:

Coordinate workshop capacities: Coordination between the countries and wagon keepers must be ensured in order to have the wagons to be converted in operation (national and international relations) routed to the nearest or best possible workshop and returned again.
Align funding requirements. The prerequisite for funding is usually an entry in the vehicle register and/or a registered office in the respective country. However, as wagons are not always used in that country but move throughout Europe, funding must be secured for wagon keepers in all countries at the time of migration.
Coordinate migration timetable. Early migration leads to new interfaces in rail freight transport. Specifically, a wagon converted and funded in Switzerland cannot run in Germany as long as the DAK migration has not started there and the corresponding import and export transports have not been coordinated. In addition, the vehicle owner can only use his fixed assets to a limited extent.
Bring decision-making bodies together: The technical solutions are adopted in the specified bodies of the EU and then adopted by Switzerland. Integrating these resources into the EU project would be more expedient than having Switzerland set up its own organisation.

In order to contribute to the overall realisation at EU level, we in Switzerland must concentrate on the preparatory work with all the companies concerned and actively push ahead with our test phases and pilot transports. We cannot afford any teething troubles with the products and specifications.

Basis for a fundamental system change

The DAK is not a technical undertaking, but the beginning of the necessary digitalisation and integration of rail freight transport into a sustainable logistics chain. With the DAK, elements such as automatic brake testing, automatic recording of the wagon sequence, train integrity control or electro-pneumatic braking are added in addition to the coupling process.

In order for the DAK to unfold its full technical effect and give rail freight transport the necessary market dynamics, we have to work on the following aspects before the start of migration:

Redefine operational processes
Adapt regulatory requirements and regulations and simplify timeframes
Prepare and adapt infrastructure and sidings
Train affected groups for migration and operation
Automate inspections and maintenance
Automate transport information for shippers
Effectively protect digital data from unauthorised access

We at the VAP also aim to launch a data platform and exchange data in the sense of an eco-data system. We are convinced that the DAK will only bring the necessary and large-scale added value to the railway sector with the exchange of data. We are therefore very pleased that despite initial scepticism from the sector, the FOT has taken up this aspect. It also intends to include freight transport in the planned Mobility Data Infrastructure (MODIG). In our next blog on the DAK, you can read about the extent to which the DAK contributes to an innovative, self-sufficient and customer-oriented rail freight transport system and how the letter K can therefore be translated primarily as connectivity.

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30.05.2023 | Financing Freight Transport Industry Innovation Politics Automation, DAC, Data platform, Digitisation, Traffic shift

by blaettler_redaktion | May 30, 2023 | Financing, Freight Transport Industry, Innovation, Politics

We have supported the digital automatic coupler (DAK) since its beginnings. That is why we are involved in the international umbrella organisation of wagon keepers UIP, the European DAC Delivery Programme (EDDP) and the Swiss DAK migration...

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Dr Peter Füglistaler: “In principle, I welcome new market participants seizing their opportunity.”

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The Federal Office of Transport (FOT) promotes the sustainable development of freight transport and the efficient interaction of all modes of transport within the framework of Swiss policy. It is responsible for licensing, financing and safety supervision in rail transport, cableways and chairlifts, buses and shipping. Thanks to favourable framework conditions, it should be possible to operate rail freight services on a self-financing basis. In addition, the federal government can grant investment contributions for technical innovations in rail freight transport. The FOT controls and checks the subsidy payments in freight transport within the framework of a controlling system. Dr Peter Füglistaler has been Director of the FOT since 2010. Before joining the FOT, Peter Füglistaler held various positions at the Swiss Federal Railways (SBB). In an interview with the VAP he answers questions about rail freight transport.

VAP: Mr Füglistaler, SBB Cargo does not seem to be coming out of restructuring/subsidy mode. At the same time, federal finances are very tight. Can rail freight customers sleep easy, will SBB Cargo be able to turn the corner?

Dr Peter Füglistaler: The Confederation has made it clear that it wants to develop freight transport further - taking into account energy and climate policy goals and in the knowledge of the great importance of rail transport for Switzerland's security of supply. The Federal Council is also prepared to modernise rail freight transport technically and organisationally and proposes targeted financial support for this purpose. Nevertheless, it is important that shippers also play their part in shaping the future.

The sugar beet contract was lost, Coop successfully runs its own RU, now also in the WLV system. Gravel companies are building up their own EVU. How do you assess this market development from the owner's point of view?

I can only speak here as the director of the financing and supervisory authority. In principle, I welcome it when the market plays and new market participants seize their opportunity. SBB Cargo, for example, also has to assert itself in the market and look at its own economic viability.

The pressure to settle, keyword "Major Accidents Ordinance", has an impact on the transport of dangerous goods. What is the FOT doing to ensure that dangerous goods transports continue to be possible within the existing framework in order to secure self-sufficiency and safeguard Switzerland as an industrial location?

The FOT regularly reviews the risks of dangerous goods transports and, if necessary, implements measures at an early stage in dialogue with the parties involved. A good example is the joint declaration by industry, transport companies and authorities on risk reduction in the transport of chlorine. Such early recognition and joint action makes it possible to continue transporting dangerous goods safely by rail.

While Europe focuses on the DAK, SBB is more interested in the AK - without the D. Is this also your perception and would you support this position of SBB?

I don't see this separation at SBB at all. Like BAV, VAP and VöV, SBB is of the opinion that digital functions are needed to make rail freight transport safer, faster, more flexible and thus more reliable and cheaper. With the support of the FOT, SBB Cargo has set up a test train to test and optimise the power supply and data transmission in goods trains. The results are being incorporated into the work at European level, where SBB is actively involved, as are all the other railways in Europe. Switzerland will not be making any extra moves as far as digital automatic coupling is concerned. However, we will not be able to wait if the work in Europe is delayed. Because by waiting, we risk the achievement of nationwide rail freight transport. As soon as the technical specifications in the TSI standards are fixed, we want to start.

There are many calls for the industry to speak with one language. Now the industry has jointly realised the "Vision 2050", but unfortunately this was not reflected in the design of the consultation for nationwide rail freight transport. Was the voice too quiet? What is the FOT's expectation?

The vision was drawn up by the FOT's accompanying group for the further development of freight transport by rail. The most important associations and players in Swiss rail freight transport are represented there. But the thing is: despite this vision, the associations have expressed very heterogeneous ideas and in some cases not very realistic wish lists for the future of Swiss rail freight transport as part of their statements on the consultation process.

How would you describe the VAP?

The VAP is an important voice in the Swiss freight transport industry, which in turn is existential for the country's security of supply.

What strengths do you attribute to the VAP?

The VAP has its strengths in bundling the interests of the players and in its good relations with the political decision-makers.

What else would you like to see from the VAP?

In the future it will be important to present the interests of the shipping industry even more pointedly to the outside world. The VAP can strengthen its position in this respect.

To whom would you recommend cooperation with the VAP?

Rail freight transport does not work without sidings and freight wagons. That is why cooperation with the VAP is recommended to everyone who wants to operate rail freight transport successfully.

Dr Füglistaler, thank you for the interesting interview.

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17.05.2023 | Financing Freight Transport Industry DAC, Digitisation, FOT, Vision

by blaettler_redaktion | May 17, 2023 | Financing, Freight Transport Industry

The Federal Office of Transport (FOT) promotes the sustainable development of freight transport and the efficient interaction of all modes of transport within the framework of Swiss policy. It is responsible for licensing, financing and safety...

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SBB should take responsibility instead of 3 billion financial package

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In our blog post «No stabilisation of the SBB despite CHF 3 billion in additional federal funding», we expressed our position on Motion 22.3008. In this post, we summarise the voice of the industry and interest representatives in response to the Federal Council's proposals in the report of 16 December 2022. The business community rejects the financial injection of 3 billion Swiss francs to the SBB and instead calls for corporate responsibility.

This is what it's all about:

SBB confronted with poor results in long-distance traffic due to pandemic
Economy rejects financial injection of 3 billion Swiss francs and calls for entrepreneurial solution
A clear "no" to the misappropriation of the HVF
Change of system for loans welcomed
Market liberalisation in long-distance transport divides the economy

Motion 22.3008 «Support for the implementation of SBB investments and a long-term vision in Covid-19 times» demands that the Confederation take over SBB's deficits in long-distance transport. In its report of 16 December 2022, the Federal Council sets out its proposals for financing SBB. It proposes a one-off capital grant of an estimated 1.25 billion Swiss francs and wants to reduce the track access charges for long-distance traffic with a further 1.7 billion Swiss francs. This subsidy is to be secured financially by crediting the full proceeds of the performance-related heavy goods vehicle charge LSVA (federal share) to the rail infrastructure fund. The aim of the measures is to compensate for SBB's losses in long-distance traffic from 2020 to 2022 and to comply with the upper limit of its net debt.

No to the financial injection, yes to the waiver of vault loans

The business community - represented by Economiesuisse, SGV, CFS, Astag and VAP - and the pro-business parties FDP and SVP reject both the proposed cash injection and the misappropriation of the HVF for the benefit of long-distance transport by a clear majority.

They are equally united in welcoming the system change in the granting of loans and call for the abandonment of vault loans. A majority sees the capital market as the solution for financing in the commercial sector. A minority can also imagine certain federal loans from parliament for this purpose. Overall, transparency in the commercial and subsidised sectors should be increased.

Entrepreneurial responsibility demanded

Instead of the Confederation assuming SBB's losses as a result of the Covid 19 crisis at the taxpayer's expense, the state railway should bear entrepreneurial responsibility. To this end, it has various market-based measures at its disposal to bring operating costs and investments in line with supply and prices. Realistic examples are cost savings, price increases or the sale of real estate not required for operations.

Designing a train-path pricing system that is fair to the polluter.

SVP, Economiesuisse, SGV, CFS and VAP reject a reduction of the train path price for long-distance traffic. The FDP and Astag can imagine a shared solution between the federal government and the SBB. The Swiss train-path pricing system is not designed in a way that is fair to the polluter; freight transport is burdened too heavily. The stakeholders agree that the HVF should not be misused to solve this problem. Instead, the Confederation should continue to use the federal share of the HVF to steer and increasingly for the decarbonisation of road, rail and shipping.

Disagreement on market opening

The freight transport-related associations Astag, CFS and VAP are calling for a migration strategy to open up the market in long-distance transport in line with the European Union (EU). Here, the other business representatives and parties close to the economy show a greater willingness for realpolitik demands. Whether this Swiss realpolitik can be maintained for long on the European stage remains to be seen.

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Positions in wording

You can find our complete hearing response of 7 March 2023 as a download on our website:

VAP consultation response

You can download further consultation responses here:

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16.05.2023 | Financing Operations Politics HVC, Subventions

by blaettler_redaktion | May 16, 2023 | Financing, Operations, Politics

In our blog post «No stabilisation of the SBB despite CHF 3 billion in additional federal funding», we expressed our position on Motion 22.3008. In this post, we summarise the voice of the industry and interest representatives in response to...

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Freight Transport Forum: Multimodality and the Future of (Rail) Logistics

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The Freight Transport Forum, which took place on 20 April 2023, addressed the future of logistics, multimodality and, in particular, the steps needed to modernise Swiss freight transport in a digital and dynamic world. Top-class speakers informed the audience about the latest research results, developments and challenges in practice as well as new legal framework conditions.

The three introductory speeches by representatives of the business community, Sara Udavri (IKEA Supply AG), Titus Bütler (Swiss Post) and Rainer Deutschmann (Migros-Genossenschafts-Bund) clearly demonstrated the business community's commitment to sustainable logistics. One lever for this is the shift of transports into multimodal logistics chains, in which energy- and space-efficient modes of transport such as shipping and rail should also play a leading role. This is difficult in a dynamic world with traditionally less flexible partners and limited infrastructure capacities and involves considerable supply risks. However, based on the findings of research, presented by Dr. Matthias Prandtstetter (AIT Austrian Institute of Technology) for the provision and use of data and artificial intelligence, solutions are emerging to be able to organise increasingly dynamic and resilient transport chains. The data exchange structures that are necessary for this are already active in the field of CT, as exemplified by the DX I hub presented by Christoph Büchner (DX International) with government support from Germany, or are in the process of being created due to the new legal basis in Switzerland, presented by Monika Zosso (Federal Office of Transport BAV). Dr. Peter Füglistaler (Federal Office of Transport FOT) outlined how Switzerland intends to integrate the rail freight transport system into multimodal logistics and transfer it to the digital world of tomorrow.

In Europe, a negative development can be observed despite EEC Directive 91/440: Declining modal split and high subsidies for state railways, little customer orientation and innovation, as in many places in Europe competitors in rail freight transport still play a subordinate role. A fundamental restructuring of the rail system is therefore inevitable in order to find a way out of the subsidy trap. In doing so, the system must be made sustainable and risk-optimised through the implementation of automation and digitalisation by means of the DAK as the first step without alternative. However, this must be followed by the further development of the system, especially in wagonload traffic, in order to reduce the risk of failure for the customers and the owners of the state railways operationally and financially and to promote customer orientation and innovation. One possible solution is to split the system into a network provider of several players with a system integrator and a neutral last mile provider outside the transport market (see blog article «Outsourcing the last mile and making it non-discriminatory»).

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Review of the Freight Transport Forum: The most important points in detail

MULTIMODALITY - MODERNISING SWISS FREIGHT TRANSPORT

Against the backdrop of the current debate on the financing of rail freight transport by the federal government, the Freight Transport Forum dealt with the challenges of multimodality in logistics.

Welcome

In his welcome address, Frank Furrer pointed out the thread running through the VAP's forums, from safety in the area of conflict between costs and quality and new forms of cooperation in wagonload traffic in 2019, through politics in the green rush and the actual innovation potential of automation and digitalisation in 2022, to the current forum, which deals with the future of logistics and multimodality. The fundamental renewal of the rail system and the harmonious and powerful interplay of all modes of transport are necessary to make optimal use of the available capacities of the various infrastructures, to ensure a secure supply of Switzerland and also to create a place for rail in logistics. All this is in the interest of Switzerland as a place to live and do business. Since EU Directive 91/440, i.e. well over thirty years ago, the states in Europe have been trying to lead their own railway companies to success. Despite large subsidy programmes in UCT, a declining share of rail freight transport in the modal split can be observed and rapidly increasing subsidies to the state railways are necessary. There is no alternative to modernising and fundamentally restructuring the system. It will once again cost the states a great deal of money and demand a lot from the industry. What it could look like will be discussed together today.

Multimodality - On the Revision of the Freight Transport Act

Dr. Peter Füglistaler, Director of the Federal Office of Transport, presented the Federal Council's proposal for the revision of the Freight Transport Act. This focuses quite strongly on measures to strengthen multimodality, as there are practically no monomodal transports by rail. A redefinition of the transhipment platforms, which are to enable more multimodality and bundling, especially as city hubs, and their financial and spatial planning support are an essential improvement of the framework conditions. A transhipment bonus is intended to provide incentives to shippers to increasingly combine different modes of transport in their logistics chains. For the director of the Federal Office of Transport, the Digital Automatic Coupling DAK is a key factor for success and less future than urgently needed reality. The state is happy to help on the way to this new reality, but the initiative must come from the economy.

Multimodality - On the needs of business - IKEA

Sara Udvari, Category Manager Logistics at IKEA Supply AG, emphasises the importance of sustainability in the company's supply chain. The vision of creating a better everyday life for people includes responsibility for the environment. As IKEA's products often make a long journey through the supply chain, it is important to find sustainable solutions. To be climate positive by 2030, IKEA focuses on reducing greenhouse gases, improving energy efficiency and supporting suppliers. In transport, the aim is to reduce greenhouse gas emissions by 70%, while in storage the target is to reduce CO2 emissions by 80%. To achieve these goals, IKEA is focusing on three key areas: increasing efficiency, replacing fossil fuels with intermodal solutions and electrification, and rethinking the way products are delivered. IKEA is already committed to intermodal transport and is currently at 46% intermodal solutions globally. Fact-based CO2 calculation is an important part of IKEA's sustainability strategy. Preset calculations only give average values, so fact-based tools should be used to get a realistic calculation of the carbon footprint. IKEA aims to further develop multimodality in order to find even more sustainable solutions. A prerequisite for this is dynamic transport chains and a corresponding organised constant exchange of data. Cooperation with partners who share the same values is central to this.

Multimodality - On the needs of the economy - Migros

Rainer Deutschmann, Head of Safety & Transport, is committed to a sustainable supply chain at Migros. The focus is on multimodal goods logistics that combine different means of transport such as rail, truck, autonomous driving and Cargo Sous Terrain (CST). Together with economiesuisse, VAP, Astag and IG DH, the role that the various means of transport should play in sustainable freight logistics is being worked out. Although Migros is fundamentally opposed to subsidies, a limited subsidy in the area of technology transfer is advocated as long as it does not distort competition and the benefits reach the customer. In order to make goods logistics more sustainable, the focus is on reducing the number of kilometres driven and increasing automation. Good multimodality requires a complete redesign of the railway. CST is in the implementation phase and is already well advanced. Switzerland's largest warehouse in Ebikon also serves as a test site for autonomous driving. For trucks, several drive technologies are still being investigated, such as biogas, electric or H2. In order to select the most efficient means of travel with the most suitable drive, Migros evaluates data from GPS tracks. Rainer Deutschmann's commitment shows that companies can and must live up to their responsibility towards the environment. Cooperation with various partners and the use of new technologies are key success factors.

Multimodality - On the needs of business - Post Office

Titus Bütler shed light on multimodality in Swiss Post's transports and the needs of its customers, who expect fast, reliable and affordable deliveries. Swiss Post strives to meet these needs by ensuring frequent and reliable transport, offering competitive prices and providing important data. There are 45 postal trains daily with a punctuality rate of 94.4%. However, the truck is about 25-40% faster from ramp to ramp compared to the train, even if the truck still has to pile up the goods. This has led to a decline in the rail share. Nevertheless, Swiss Post continues to rely on rail and is therefore trying to build infrastructure to speed up rail transport, such as letter centres with ramp tracks and its own rail terminals (kV) at the three large parcel centres. Since Swiss Post has to fulfil a basic service mandate, the acceleration of rail transports must also be supported in the framework conditions. Approaches for this are qualified express routes, prioritisation of time-critical freight traffic next to passenger trains (key words: priority departure of the fast goods train before the suburban train at the node), acceleration of shunting work including brake tests and the use of fixed bi-modal drive compositions.

Modernisation of freight transport in Switzerland and Europe through multimodality

Jürgen Maier has summarised facts on the modernisation of freight transport in Switzerland and Europe through multimodality on the basis of information from the umbrella organisation UIP - INTERNATIONAL UNION OF WAGON KEEPERS. Surveys show that multimodal logistics are in demand and that rail is regarded by politicians as the backbone of multimodal freight transport. However, for rail to turn this opportunity into reality, a Europe-wide system change is necessary. Especially in WLV, the processes and organisation have remained unchanged for 100 years. A holistic view is required that includes ports, modular systems, digital platforms, intelligent infrastructure, digital networking in the train network, consistent spatial planning and integration into city logistics. The future is digital, and the technologically innovative Digital Automatic Coupler (DAC) project, which is currently being tested by wagon keepers and freight railways, is a key step in this direction.

Modernisierung des Güterverkehrs in der Schweiz und Europa durch Multimodalität

Jürgen Maier hat anhand von Informationen der Dachorganisation UIP - INTERNATIONAL UNION OF WAGON KEEPERS Fakten zur Modernisierung des Güterverkehrs in der Schweiz und Europa durch Multimodalität zusammengefasst. Umfragen zeigen, dass eine multimodale Logistik gefragt ist und die Schiene in der Politik als Rückgrat des multimodalen Güterverkehrs betrachtet wird. Damit die Bahn diese Chance in die Realität umsetzen kann, ist allerdings ein europaweiter Systemwechsel notwendig. Vor allem im WLV sind die Prozesse und die Organisation seit 100 Jahre unverändert. Eine ganzheitliche Betrachtung ist erforderlich, die Häfen, modulare Systeme, digitale Plattformen, intelligente Infrastruktur, digitale Vernetzung im Zugsverband, konsequente Raumplanung und Integration in die City-Logistik einschliesst. Die Zukunft ist digital, und das technologische innovative Projekt "Digital Automatic Coupler (DAC)", das derzeit von Wagenhaltern und Güterbahnen getestet wird, ist wegweisend. The "C" in DAC can also stand for "connected". Automated and networked systems are necessary for a thriving economy and society in the future. Jürgen Maier emphasises that cooperation at the political, strategic, operational and technical levels is important to achieve the goals.

Panel discussion

In the panel discussion that followed, there was agreement that for the WLV to exist, its comprehensive reorganisation is necessary, as was also made clear in the consultation responses on the further development of freight transport. It was mentioned in passing that this political debate was initiated by VAP President Josef Dittli with his motion and that the VAP has contributed a lot to the industry's united stand on this issue. The aspect of an overall vision that includes the topics of energy and food policy was interesting. In surface freight transport there is no modal shift target, there is a free choice of transport mode. This makes it all the more important to make rail transport more attractive in order to develop a competitive alternative and supplement to road transport, because the road would not be able to absorb the loss of all WLV. The DAK offers a first step towards increasing efficiency and thus offers an inevitable prerequisite for the fundamental transformation of WLV.

There was also a debate on whether transport always has to be faster and how to reconcile the competitive advantage of fast transport with sustainable logistics and an aligned supply chain. The participants agreed that all stakeholders involved must participate in a networked redesign to find a sustainable solution for the future. The discussion ended with the conclusion that prioritisation, reduction of process inefficiencies and digital networking are the keys to on-time, low-cost and fast delivery.

The future of (rail) logistics

With the Federal Mobility Infrastructure Act, the federal government plans to create a public data platform to simplify multimodal solutions and network all the players involved. In the afternoon, speakers from the federal government, academia and business highlighted in their presentations how the federal government is approaching the topic and what requirements the shipping industry has for multimodality.

The future of logistics

The presentation by Dr. Matthias Prandtstetter dealt with the future of logistics and the need to act to achieve climate neutrality. It was stressed that just switching to e-trucks is not enough and alternative logistics solutions must be used. Rail should be established as a real alternative to road, as it is more energy efficient and allows for strong bundling. Synchromodal transports were presented as the concept of the future, where ships and railways form the basic supply and trucks serve as feeders and back-up solutions. Transport decisions are made in real time and by the system, similar to the digital internet, which is called the physical internet. The importance for the railways lies in digitalisation, reliability and flexibility, as well as the equivalence of freight and passenger transport.

Federal law on the federal mobility data infrastructure

Monika Zosso holds the co-leadership of the Directorate Business Section as well as the project management "Data for an efficient mobility system" at the Federal Office of Transport. In her presentation, she introduced the Federal Mobility Data Infrastructure Act (MODIG). Mobility data is to be considered as a system-relevant infrastructure to make the mobility system more efficient, to satisfy individual mobility needs, to operate infrastructures more efficiently and to promote innovations. MODIG shall facilitate innovative solutions for all actors in the mobility ecosystem and enable the spatial data infrastructure for mobility. The National Data Networking Infrastructure Mobility (NADIM) supports the operation and further development of MODI and provides technical support, standardisation, expert support, consolidation and integration of data. This solution is provided by the state without any commercial benefit being sought. Possible use cases in the field of logistics are transport and route planning for all modes of transport, whereby an application for this should be provided by the industry. Exchange with the freight sector is necessary and desirable for this.

CT4.0 - Digital data hub for combined transport

Christoph Büchner, Co-Director at DX Intermodal in Frankfurt, was pleased to be able to show an innovation from Germany, as the EU normally looks rather enviously at Switzerland. His presentation on the topic of KV4.0 dealt with the goal of the Federal Ministry of Digital Affairs and Transport BMVD to create a common data hub for the exchange of data within the intermodal supply chain. The KV4.0 data hub is intended to enable an end-to-end information chain and transparency so that the data is understood by everyone in the same way, and to avoid digital isolated solutions. The data hub supports various message types and is marketed by DX Intermodal GmbH and is internationally positioned with project partners. Currently, 16 players are already connected to the platform and are testing it. It is a data hub, not a platform, and DXI has no access to the data. The KV4.0 project is a promising step towards the digitalisation of intermodal supply chains and can contribute to reducing the competitive disadvantages of combined transport compared to road haulage.

New innovation approaches from practice - unfortunately dropped out. Jens Engelmann made a spontaneous input on optimised transport options with artificial intelligence.

Panel discussion

In the concluding panel discussion, the afternoon's topics were discussed in greater depth, in particular the importance of planning data and real-time data in the future as well as the concept of the physical internet. Here, goods independently find their way through an intermodal transport network, which reduces empty runs and enables better utilisation of capacities. Standardisation on an EU-wide level was also discussed to achieve harmonisation of language in data platforms and enable network optimisation with AI. One participant stressed that AI is not intelligent, but that the algorithm must have the right data and definitions to achieve good results. Data security was also an important aspect, with data sovereignty always remaining with the sender of the data in the models presented. The possibilities that arise with digitalisation, the correct handling of data and artificial intelligence are also very great for transport logistics.

Summary of the Forum and Farewell

At the end of the forum, Dr. Frank Furrer summarised the findings of the day. The customers have shown that rail is not folklore, but a possible instrument to achieve environmental and supply policy goals. The self-image of the members of the VAP is to promote the shift of industry to rail. The VAP advocates for better framework conditions in politics and for simplification of the often unnecessarily complicated regulated railway system in its expert advice to its members. A more dynamic world demands adaptable transport chains and redundant approaches to meet needs. For this, rail freight, which has remained unchanged for the last 100 years, needs a fundamental redesign. We need networking of all modes of transport, including underground and across borders. For the future, transport logistics needs a mobility ecosystem that enables data exchange and networking. The challenge here is harmonised interfaces. Two years ago, the VAP submitted a funding application for the SGV data platform, which was rejected, citing MODIG. However, it should not be overlooked that the project was developed for passenger transport and that, for example, no trucks are yet planned on MODIG. The VAP wants to bring goods onto the railway. To achieve this, the railway must perform well, satisfying all providers, customers and politicians, in cooperation and competition, using the capacities in a targeted way. It makes sense to start small but think big.

We look back on a successful Freight Transport Forum, where meeting and exchanging ideas was not neglected either.

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12.05.2023 | Events Freight Transport Industry Innovation Digitisation, EU, Industry, Multimodality

by blaettler_redaktion | May 12, 2023 | Events, Freight Transport Industry, Innovation

The Freight Transport Forum, which took place on 20 April 2023, addressed the future of logistics, multimodality and, in particular, the steps needed to modernise Swiss freight transport in a digital and dynamic world. Top-class speakers informed...

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Improvement of freight transport: it is high time to do something

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Representatives of the industry and interest groups had until 24 February 2023 to comment on the consultation draft entitled «Improving the framework conditions for freight transport in Switzerland». The LITRA, UTP, CI TCNA, ASTAG and VAP have jointly submitted their views (blog Rail freight transport in the territory: the industry develops a joint solution). Here is a summary of the key elements of the responses from other stakeholders.

The issues at stake:

Abandoning wagonload traffic (TWCI) would be fatal.
Funding must not maintain the status quo.
Digital Automatic Coupling (DAC) and the data platform must be promoted.
Non-discriminatory access to the market must remain possible.
Innovative approaches at organisational level, cooperation between players
Focus on customer benefit.

The Federal Council invited industry representatives and political parties to submit their views on the consultation project entitled "Improving the framework conditions for freight transport in Switzerland" by 24 February 2023. Many responses were received. Below we compare the statements of the representatives of certain interest groups and draw a conclusion. The Federal Council will incorporate the feedback into its message to Parliament in a second step.

Do not abandon the TWCI

With the exception of the SVP, the responses were in favour of variant 1, a further development of V1 or a completely new variant. The respondents consider the abandonment of the TWCI to be fatal. They fear the loss of security of supply, capacity shortages on the road, additional work and expense in logistics and greater efforts to meet climate compatibility.

Do not maintain the status quo through funding

Many respondents agreed with partial funding as proposed. Several responses suggested that funding should be from existing funds - preferably from the IFF - rather than from new credit. However, several respondents expressed concern that the funding is underestimated and therefore serves at most to maintain the current state. They therefore call for an increase in funding that will achieve the modal split change they are aiming for. There is a consensus that the funding should allow for modernisation and customer orientation, so as to ensure financial autonomy in the future.

Advancing digitalisation and automation

A majority is in favour of modernising rail freight transport by means of the CPD. They approve of federal funding in the form of time-limited financing until the DAC is completed.

According to the majority of responses, digitalisation also includes the interconnection of freely accessible data platforms and the simplification of cooperation between market players that goes with it.

Preserving a non-discriminatory market economy

Some voices call for a transfer mandate for freight transport, others insist on a free choice of means of transport in domestic traffic. On the whole, respondents want non-discriminatory support for different types of traffic and modes of transport. The free market economy must be preserved. Innovative approaches at the organisational level and cooperation between market players will make TFM more attractive to customers.

Preventing distortions of competition in the TWCI

The majority did not support SBB Cargo as a monopoly in the TWCI. The respondents propose adjustments to prevent distortions of competition, such as organisational and financial separation of the TWCI from the block train and cooperation between the market players.

Improving customer benefit

A need mentioned by several interviewees is that the overall design should systematically focus on improving customer benefit. This includes sufficient and properly allocated infrastructure capacity and an appropriate market system that promotes innovation and attractive offers. With regard to train path prices, the respondents would like to see a reduction - for example, on a European scale.

An underestimation of the need for action

The many responses highlight one thing: the need for action in rail freight transport is much greater than the Federal Council has shown. The two alternative solutions merely offer a choice between two lesser evils instead of a comprehensive solution. In order to have a factual debate on the financing alternatives, the respondents would like to receive clear facts about SBB Cargo's finances.

The overwhelming majority of respondents deplored the fact that there was no coherent overview, rather than just the TFM and shipping. They cited the HVF and the forthcoming revision of the Federal Act on a Heavy Vehicle Fee (HVF), as well as the Federal Act on Mobility Data Infrastructure (MVDI).

The DETEC evaluation is published here: https://www.fedlex.admin.ch/eli/dl/proj/2022/69/cons_1

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04.05.2023 | Financing Freight Transport Industry Politics Confederation, DAC, Multimodality, Wagonload traffic

by blaettler_redaktion | May 4, 2023 | Financing, Freight Transport Industry, Politics

Representatives of the industry and interest groups had until 24 February 2023 to comment on the consultation draft entitled «Improving the framework conditions for freight transport in Switzerland». The LITRA, UTP, CI TCNA, ASTAG and VAP have...

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Driving service regulations: Please simplify and harmonise internationally

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The Federal Office of Transport (FOT) is further developing the Swiss Driving Service Regulations (FDV2024) as part of the 2024 amendment cycle. Systematic changes are central. Here is a statement from the perspective of the shipping industry.

This is what it's all about:

Further development of the driving service regulations from 2024 in force
Systemic simplification for railway employees required
Consistent application of the TSI OPE additionally increases interoperability
Railway industry should take responsibility for the rules on driving services
VAP wants more entrepreneurial leeway for siding operators

For more than 20 years, uniform train service regulations have been in force in Switzerland, which are binding for all railway undertakings. They are essential for railway operations, as they define safety-relevant activities and cooperation measures and specify the tasks, competences and responsibilities of all those involved in railway operations. The FOT works closely with the railway industry to further develop the driving service regulations and update them every four years. This amendment cycle makes sense, as it takes into account both the daily experiences from operations and the technical developments in the railway industry. However, it also has negative side effects: For example, the TSO have grown into a jungle of regulations that is difficult to keep track of and that urgently needs to be streamlined and aligned with the interoperability regulations. The responsible companies must be granted more entrepreneurial freedom. The current revision is scheduled to come into force on 1 July 2024^[1]

Amendment cycle 2024 with important sub-projects

We at the VAP welcome the systematic further developments of the driving service regulations proposed by the FOT in the conceptual sub-projects (cf. Figure 1). We also suggest that the fundamental innovations be implemented consistently and quickly.

With sub-project 1 "STRUCTURE", the FOT wants to systematically structure the driving service regulations in order to make them more comprehensible and uniform for users. The full implementation of this unification will require several rounds of amendments. It usually makes sense to combine structural harmonisation with material adjustments.
With sub-projects 2a, 2b and 2c "Application", the FOT aims to create the conditions for a systematic digital use of the driving service regulations. Each individual regulation is assigned to a scope of application or an option. It is now specified who performs which function. As soon as this sub-project is realised, regulations can be clearly filtered according to areas of application and assigned to functions. This will massively increase efficiency in the creation and in all applications of regulations, as it allows for digital usage options.
Within the framework of sub-project 3 "Impact", the FOT is required to find a user-friendly strategy to ensure the safe transfer of responsibility to the railway undertakings during ongoing operations. According to TSI OPE (see box), the railway undertakings are responsible for operating regulations; this should also apply in Switzerland in the future. The ongoing development of the TSI OPE will also make it possible to gradually abolish the existing national rules of the rolling stock regulations and to retain only mandatory national regulations that have to be notified to the European Railway Agency ERA as Notified National Technical Regulations (NNTV)^[2].
Sub-project 4 "MATERIAL" includes a number of content-related adaptations that update the running service regulations.
Regulating cooperation between all stakeholders

Far-reaching changes are on the horizon for the further development of the driving service regulations as of 2024. We are convinced that railway operations cannot be classified as complex per se. It needs clear rules for the cooperation of all those involved - especially because the division of labour, automation and specialisation in railway operations are increasing. Therefore, in our view, the following aspects should be included:

Aim for simplification

There is a need for uniform, comprehensible and addressee-appropriate regulations that apply across companies. Employees should have all the necessary rules for their respective functions and be able to work consistently freed from unnecessary ballast.

The operating regulations should be formulated on a risk basis, and the railway companies must develop simple and cost-effective solutions tailored to them within a defined overall framework in order to produce competitively.

Use digitalisation

With function-based filters, digitalisation enables a massive increase in efficiency in the use of the driving service regulations. Anyone carrying out a safety-relevant activity needs to know the regulations relevant to it - but only these.

Ensuring entrepreneurial freedoms

We at the VAP strive for feasible solutions for sidings, as strict compliance with the regulations defined for railway operations is not always possible here. For sidings in particular, we recommend a risk-based approach to ensure more entrepreneurial freedom. Specific regulations are needed to make the operation of sidings safe and cost-efficient for operating companies and employees.

Ensure interoperability

Interoperable railways that operate on different infrastructures and across borders in several countries have different requirements than regional railways and railway sidings that only operate locally. In view of the different conditions at stations and sidings, the operating regulations must be designed differently, comprehensibly and concentrated on the essentials within the framework of a uniform overall structure, depending on the traffic and infrastructure.

In the standard gauge sector, the operating regulations are becoming increasingly harmonised internationally with the further development of the TSI OPE. The number of remaining national regulations must be kept to a minimum in order to improve practical applicability. All countries involved are required to abolish national regulations that are no longer needed. Consistent application of the OPE TSI will lead to more uniform rules in cross-border traffic in the long term and to the gradual disappearance of hurdles.

Assume responsibility

The OPE TSI assigns responsibility for the operating regulations to the railway undertakings. Consequently, the FOT must hand over its sovereignty over the operating regulations to the railway industry. The Swiss railway industry should actively assume responsibility for the entire operating regulations and their further development. The VAP welcomes this transfer of responsibility of the FDV to the railway industry. It is to be combined with the upcoming innovation steps. In the railway sector, a cross-company solution for uniform overarching operating regulations must be found. From the point of view of the VAP, a cooperative collaboration model would be appropriate, in which the FOT has the coordination task and develops and agrees on operational regulations in the form of a guideline together with the technical experts of the railway industry (thus Art. 3a GüTV according to the draft of the Federal Council of 2 November 2022). After publication, these guidelines can be used by the individual companies for the preparation of their driving service regulations.

TSI OPE 2019/773
This abbreviation stands for the European Union's implementing regulation on the Technical Specifications for Interoperability "Traffic Operation and Management", issued in 2019. According to this regulation, rail should regain market share thanks to barrier-free train journeys across national borders and contribute to the reduction of CO2 emissions. This requires, among other things, a comprehensive Europe-wide harmonisation of operating rules. Until now, different national regulations have been applied in different countries. The EU is driving harmonisation forward with the further development of the OPE TSI. In it, it defines the responsibilities for companies, but does not provide for any officially issued driving service regulations, as is currently the case in Switzerland. This remains the responsibility of the railway undertakings. In the interests of interoperability, they must adapt the service regulations to the requirements of the OPE TSI. Switzerland has also committed itself to the application of the OPE TSI via the Joint Committee (CH-EU land transport agreement).

Sporty timetable

The FOT has published the following timetable for the further development of the driving service regulations:

Implementation step	Deadline
Publication of FDV2024	by the end of November 2023
Entry into force of FDV2024	1 July 2024
Intermediate cycle FDV2025 (Tram and TSI OPE sub-projects)	at the end of 2025
Next regular cycle	as of mid-2028

^[1] https://www.bav.admin.ch/bav/de/home/publikationen/vernehmlassungen/abgeschlossene-vernehmlassungen/weiterentwicklung-fdv-a2024.html

^[2] https://www.bav.admin.ch/bav/de/home/rechtliches/rechtsgrundlagen-vorschriften/nntv.html

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28.03.2023 | Interoperability Operations Politics Digitisation, FOT, Operating regulations, Sidings

by blaettler_redaktion | Mar 28, 2023 | Interoperability, Operations, Politics

The Federal Office of Transport (FOT) is further developing the Swiss Driving Service Regulations (FDV2024) as part of the 2024 amendment cycle. Systematic changes are central. Here is a statement from the perspective of the shipping industry....

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Uphill and downhill journey with a clear gain in altitude

Electrification: a century ahead

Integration - a rejection of market orientation?

Accompanied combined transport (Rolling Road, Rola)

23.032 National Roads Payment Framework 2024-2027, 2023 Expansion Plan for National Roads, Commitment Credit and Amendment to the Federal Decree on the National Roads Network

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The technology raises questions

Cost-benefit transfer can bring about a reverse shift

Track to track with Europe

Basis for a fundamental system change

VAP: Mr Füglistaler, SBB Cargo does not seem to be coming out of restructuring/subsidy mode. At the same time, federal finances are very tight. Can rail freight customers sleep easy, will SBB Cargo be able to turn the corner?

The sugar beet contract was lost, Coop successfully runs its own RU, now also in the WLV system. Gravel companies are building up their own EVU. How do you assess this market development from the owner's point of view?

While Europe focuses on the DAK, SBB is more interested in the AK - without the D. Is this also your perception and would you support this position of SBB?

There are many calls for the industry to speak with one language. Now the industry has jointly realised the "Vision 2050", but unfortunately this was not reflected in the design of the consultation for nationwide rail freight transport. Was the voice too quiet? What is the FOT's expectation?

How would you describe the VAP?

What strengths do you attribute to the VAP?

What else would you like to see from the VAP?

To whom would you recommend cooperation with the VAP?

Dr Füglistaler, thank you for the interesting interview.

This is what it's all about:

No to the financial injection, yes to the waiver of vault loans

Entrepreneurial responsibility demanded

Designing a train-path pricing system that is fair to the polluter.

Disagreement on market opening

Positions in wording

Review of the Freight Transport Forum: The most important points in detail

MULTIMODALITY - MODERNISING SWISS FREIGHT TRANSPORT

Welcome

Multimodality - On the Revision of the Freight Transport Act

Multimodality - On the needs of business - IKEA

Multimodality - On the needs of the economy - Migros

Multimodality - On the needs of business - Post Office

Modernisation of freight transport in Switzerland and Europe through multimodality

Modernisierung des Güterverkehrs in der Schweiz und Europa durch Multimodalität

Panel discussion

The future of (rail) logistics

The future of logistics

Federal law on the federal mobility data infrastructure

CT4.0 - Digital data hub for combined transport

Panel discussion

Summary of the Forum and Farewell

The issues at stake:

Do not abandon the TWCI

Do not maintain the status quo through funding

Advancing digitalisation and automation

Preserving a non-discriminatory market economy

Preventing distortions of competition in the TWCI

Improving customer benefit

An underestimation of the need for action

Amendment cycle 2024 with important sub-projects

Aim for simplification

Use digitalisation

Ensuring entrepreneurial freedoms

Ensure interoperability

Assume responsibility

Sporty timetable

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