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VAP General Assembly of 19 August 2022

VAP General Assembly of 19 August 2022

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Our General Assembly made it clear: 2050 is fast approaching. On site and virtually, numerous VAP members and guests followed the statutory part with a memorable opening speech by President Josef Dittli. A special highlight was the speech by Federal Councillor Simonetta Sommaruga on the importance of rail freight transport for Switzerland.

General assembly, association, freight transport - after these words most people are mentally gone. Today, reading on is recommended. Because on the occasion of our general assembly, it was not only about statutory matters of the shipping industry. In her guest speech, Federal Councillor Simonetta Sommaruga gave a noteworthy signal to the logistics industry: «For the Federal Council it is clear: we want to further strengthen the potential that rail has for freight transport.»

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Memorable things about then, today and the day after tomorrow
The opening speech by VAP President Josef Dittli gave the participants valuable food for thought about everything that was, is and should be in rail freight transport. He said that rail freight had played a major role in ensuring that Switzerland survived Corona without any damage in terms of supply, because routes with little passenger traffic suddenly allowed it to operate as it should be able to in normal times. Dittli described the digital automatic coupler as the epitome of digital transformation in rail freight transport, because it stands for the kind of innovative further development that we urgently need. For example, so that all freight railways can establish cooperative and flexible network transport across the board together and without disadvantage. The President looks to Europe with concern. In his opinion, Switzerland must not miss the connection to the European railway sector and the EU innovation programmes under any circumstances.
Landmark decision imminent
We were very pleased that the Minister of Transport, Simonetta Sommaruga, agreed to give a guest speech at our General Assembly. In her speech, she emphasised that the Confederation wants to further strengthen the railways and pay more attention to domestic transport, which is also of great importance for the supply of Switzerland. "We must improve and further develop the system," said the head of DETEC. She said that the Federal Council would send a bill on this subject for consultation in the autumn. "We are facing a groundbreaking decision. That is why we should not lose sight of what is the recipe for Switzerland's success, what has always made our country strong: That we tackle the necessary changes best together, that we take responsibility together: Railways, industry and, of course, the Confederation." The VAP is happy to respond to her invitation to involve ourselves in the discourse, not least with its contribution to the discussion "Rail Freight Traffic 2050" and the film "Customer-oriented, Innovative, Profitable - Rail Freight Transport of the Future".
Elections successfully held
Of the items on the agenda that were put to the vote in the statutory part, all were accepted. We welcome the following new members to the Board: Titus Bütler, Bernhard Hoffmann, Bernhard Kunz. We congratulate all of them on their election or re-election and look forward to a constructive cooperation in the Board.[/et_pb_text][/et_pb_column][/et_pb_row][/et_pb_section][et_pb_section fb_built="1" _builder_version="4.16" _module_preset="default" locked="on" global_colors_info="{}"][et_pb_row _builder_version="4.16" _module_preset="default" global_colors_info="{}"][et_pb_column type="4_4" _builder_version="4.16" _module_preset="default" global_colors_info="{}"][et_pb_post_nav prev_text="Vorheriger Artikel" next_text="Nächster Artikel" _builder_version="4.16" _module_preset="default" global_colors_info="{}"][/et_pb_post_nav][/et_pb_column][/et_pb_row][/et_pb_section]
23.08.2022 | Events Freight Transport Industry ,

by | Aug 23, 2022 | Events, Freight Transport Industry

Our Gene­ral Assem­bly made it clear: 2050 is fast approa­ching. On site and vir­tual­ly, num­e­rous VAP mem­bers and guests fol­lo­wed the sta­tu­to­ry part with a memo­rable ope­ning speech by Pre­si­dent Josef Ditt­li. A spe­cial high­light was the speech by Fede­ral Coun­cil­lor Simo­net­ta Som­ma­ru­ga on the importance of rail freight trans­port for Switzerland.

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Power shortage (part 2): Prepare now for later

Power shortage (part 2): Prepare now for later

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Should an electricity shortage actually occur in Switzerland due to the geopolitical crisis and supply bottlenecks, it is essential that freight transport customers can continue to be served. This means that the transport companies must clarify their energy needs in the event of a shortage and answer some key questions today.

The Swiss railways play a decisive role in coping with the high demand for both passenger and freight transport. They depend on a secure supply of electrical energy.

Ensuring supply via rail

If at some point the available traction current is no longer sufficient for all scheduled trains, journeys would have to be cancelled accordingly. The question is: which ones? We at the VAP are firmly committed to ensuring that our members can continue to serve all freight transport customers. The population and the economy depend on reliable transport chains. That is why freight trains must continue to run as long as possible even in a power shortage situation - as they did, by the way, in the thinned-out timetable during Covid-19.

Political leadership needed

The Swiss railway system is almost exclusively electrically powered. Most of the required traction current (16.7 Hz) comes from the country's own hydroelectric power plants. Shifting transports from rail to road when there is a shortage of traction current is not very promising. In the event of a serious bottleneck, fossil fuels would also become scarcer. In order to maintain functioning transport chains, the companies involved in rail transport also need industrial electricity (50 Hz). Here, too, security of supply must be ensured. Security and reliability are required: The transport sector and the freight railways must be able to rely on the political leadership in the event of a crisis. Because even then, goods trains have to roll as long as there is demand. We want to strengthen this awareness among decision-makers.

Energy shortage not excluded

Let's not fool ourselves: An unfavourable coincidence of really negative developments could manoeuvre Switzerland into a serious energy shortage situation as early as next winter. As representatives of the electricity and gas industries explained at the Economiesuisse webinar on 9 August 2022, energy supply is highly complex and dependent on many influences.

The Confederation assumes responsibility

The Confederation is aware of its responsibility. It takes measures to secure the energy supply and prepares for critical scenarios of an acute power shortage. Depending on the situation, these measures range from voluntary, industry-specific
industry-specific savings appeals to prescribed management measures (quota system).

Determine demand and savings potential

If you think about your own energy needs now, you will be prepared for an actual electricity shortage and less likely to be surprised. So it is time to assess your energy needs, reserves, alternatives and savings potential. This assessment helps to decide how, in the event of an electricity shortage, to reduce consumption in line with higher-level targets and still contribute to the supply of essential goods. Concrete questions in the company are, for example:

  • Which activities require how much energy, what is their importance in production?
  • What is the most effective energy-saving potential?
  • How large are the reserves, how much energy can be dispensed with and for how long?
  • Where can we switch to other energy sources and how quickly?
  • Is communication in the production chains good? Are the contacts up to date?
  • What restrictions do we implement to meet a quota?
Cooperation and communication

Companies should be open about these considerations. After all, it is not possible to predict which scenarios will actually occur at which point in time. The players in the sector can maintain the supply of important goods as well as possible if they cooperate across companies and communicate actively. That is why we at the VAP, as representatives of the shippers, are already actively involved in various committees and working groups.

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22.08.2022 | Freight Transport Industry Sustainability , , ,

by | Aug 22, 2022 | Freight Transport Industry, Sustainability

Should an electricity shortage actually occur in Switzerland due to the geopolitical crisis and supply bottlenecks, it is essential that freight transport customers can continue to be served. This means that the transport companies must clarify their energy needs in...
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«We want to be faster and better than the others in the future as well.»

«We want to be faster and better than the others in the future as well.»

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In June 2022, the takeover of the family business WASCOSA by Swiss Life and Vauban was announced. We wanted to know more about the background to this sale and the vision of WASCOSA from the former owner and future Chairman of the Board of Directors Philipp Müller.

Mr Müller, the news of the sale of your successful family business came as a surprise. What will change?

Philipp Müller: Less than you might think at first glance. With this step we have secured the future of WASCOSA. Of course there will be a change from a family-run to an investment-driven company. But the spirit of WASCOSA will remain. We want to continue to act faster and better than others, to be successful as a team and to put customers' interests before our own. These goals are demanding, but doable.

What prompted you to take this step?

The succession plan and securing the future of the company. Neither of our children was interested in succeeding me. So we had to find an external solution to this question. Eight years ago, we had already hired a CEO from outside the family, Peter Balzer. In addition, our market is currently undergoing an enormous shakeout. Of the ten largest car rental companies in Europe, we are the only ones who have not experienced a merger or takeover. Those who are still in the game are constantly getting bigger, making major long-term investments and taking high financial risks. We simply needed more financial strength for WASCOSA to be able to survive as an SME in this market. We found these strong financial partners in Swiss Life and Vauban.

What other solutions were on the table?

At first we considered a minority shareholding by third-party shareholders. However, this did not result in an optimal solution for the parties involved. Selling to a competitor was never on the table. In the end, long-term cooperation with a strong financial partner proved to be the most sustainable.

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«WASCOSA has established itself from a small, unknown rental company to a successful supplier of freight car systems throughout Europe through innovation, customer proximity and agility.»

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What experiences from the past will shape the future of the company?

WASCOSA has established itself from a small, unknown rental company to a successful provider of freight car systems throughout Europe through innovation, customer proximity and agility. We want to maintain this latter position. One example of our innovative strength: there is currently a strong trend towards modular freight car concepts. We introduced such concepts 15 years ago. Now that the trend is catching on, we are ready for the market. In the last 60 years of our company, an uncompromising customer orientation has made the difference in our daily business. We want to keep it that way too. It is in the interest of the new owners that WASCOSA remains at its core what it has always been: an innovative and customer-oriented company.

How will you master this change process?

The participation of Swiss Life and Vauban as third-party shareholders was derived from an intensive strategy process with around 15 employees. After the decision was made, we introduced the new shareholders to the company at a one-day event. Throughout the entire strategy process, we wanted to avoid uncertainty, mistrust and false assumptions on the part of management and employees. We succeeded in doing so, and we are doing everything we can to ensure that we also succeed under the new ownership. CEO Peter Balzer and I will still be on the Board of Directors. This is a strong message with regard to continuity and the future of WASCOSA.

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«The DAC is a key project with enormous potential to move freight wagon transport forward.»

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Where do you see the most urgent need for action in rail freight transport?

There are different starting points. We need sufficient capacities on the network, i.e. more train paths. In addition, country-specific obstacles should be removed. And finally, rail freight transport is dependent on targeted financial support to get innovations rolling, for example the digital automatic coupling (DAC).

Speaking of DAC: what do you think about it?

It is a key project with enormous potential to move freight wagon transport forward. However, we have little influence on this highly political topic. We have been working on the electrification of freight wagons for several years. Here, of course, the DAC gives us an additional boost.

Is the real added value of the DAC recognised by the industry?

Our industry is not too keen on innovation and also not very future-oriented. The automation of coupling by the DAC has arrived. I am not so sure about its potential for digitalisation. As always, it probably first needs someone to lead the way and make the efficiency gains clear.

You have been involved in the VAP's Executive Committee (GLA) for years. How do you describe the work of the VAP?

The VAP is characterised by a high level of competence and a pleasant working relationship. The association's activities are driven by the cause and not by the ego of individuals. The VAP is the leader in some areas. This is shown by the high level of participation at home and abroad in events such as the forums. This interest proves that the VAP takes up political, economic or legal issues proactively and constructively. I found the get-together at the GLA very positive. In the dialogue with SBB, the association shows staying power. Here, passenger transport comes first, then infrastructure, then real estate and only then rail freight. That makes it all the more important to keep at it. The patience and constant cooperation of Frank Furrer's team stand out.

What strengths do you attribute to the VAP?

One of its main strengths is the large number of shippers among its members. The VAP networks all the players in freight transport. In addition, it offers the shippers' industry a highly interesting and relevant platform. I think that you can only make successful policy if you represent all interests.

How has the VAP supported you and your WASCOSA?

We have had very good experiences with the VAP. It has even supported us competently and successfully all the way to the Federal Court.

What else would you like to see from the VAP?

That it becomes more visible in the media. The VAP could appear more prominently as an opinion-leading expert on rail transport and thus increase its public profile, just like the TCS or ASTAG.

To whom would you recommend cooperation with the VAP?

Everyone who is interested in rail freight transport. I am thinking above all of associations from other modes of transport. For a long time now it has no longer been just about rail versus road, but about sensible multimodal co-existence.

What has not yet come up in this conversation?

The topic of sustainability. Rail freight transport is one of the most important drivers and carriers of sustainable transport. Incidentally, this was also one of the reasons why I took over from my father-in-law at WASCOSA 30 years ago.

 

Mr Müller, thank you very much for the interesting interview.
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22.07.2022 | Competition in rail freight transport Freight Transport Industry , , , ,

by | Jul 22, 2022 | Competition in rail freight transport, Freight Transport Industry

In June 2022, the take­over of the fami­ly busi­ness WASCOSA by Swiss Life and Vau­ban was announ­ced. We wan­ted to know more about the back­ground to this sale and the visi­on of WASCOSA from the for­mer owner and future Chair­man of the Board of Direc­tors Phil­ipp...
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Economic advantages of a competitive freight railway

Economic advantages of a competitive freight railway

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Freight transport plays a crucial role for the national economy as it enables the exchange of goods and services. In view of the challenges such as limited road capacity and climate change, the shift of freight transport to rail is becoming increasingly important. Here we explain the economic benefits of a modal shift.

Limited road capacity:

The road infrastructure is limited and is already reaching its limits in many regions. Due to the increased use of HGVs in freight transport, traffic on the roads continues to rise, leading to congestion, delays and increased transport costs. Shifting freight traffic to the railways relieves the roads. This enables more efficient use of existing infrastructure and reduces the need for expensive road extensions.

Climate change and environmental pollution:

The transport sector contributes significantly to CO2 emissions and other harmful environmental impacts. Compared to road transport, rail transport is more environmentally friendly, as trains produce on average fewer emissions per tonne-kilometre. In addition, rail transport reduces noise levels and minimises air pollution in urban areas, resulting in an improved quality of life for the population.

Efficiency and economy:

Rail offers high efficiency in freight transport as trains can carry larger loads than trucks. By using goods trains, large quantities of goods can be transported in one go, which leads to an optimisation of transport costs. This allows companies to improve their logistics processes and increase the efficiency of their supply chains. A more efficient freight transport connection leads to lower transport costs, which in turn increases the competitiveness of companies and has a positive impact on the national economy. Through digitalisation, the necessary freight wagons can be efficiently networked, thus avoiding fixed costs.

Safety and accident prevention:

Shifting freight transport to rail contributes to increasing road safety. Compared to road transport, accidents in rail transport are less frequent and generally have a lower impact on life, health and the environment. Reducing HGV traffic on the roads minimises potential sources of danger and increases safety for other road users.

Experienced logistics experts needed

Independent and sector-specific logistics experts are needed who specialise in specific products. The railways should concentrate on operating the trains, while the overall logistics are in the specialised hands of the logistics experts.

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14.07.2022 | Freight Transport Industry Sustainability , , , ,

by | Jul 14, 2022 | Freight Transport Industry, Sustainability

Freight trans­port plays a cru­cial role for the natio­nal eco­no­my as it enables the exch­an­ge of goods and ser­vices. In view of the chal­lenges such as limi­t­ed road capa­ci­ty and cli­ma­te chan­ge, the shift of freight trans­port to rail is beco­ming...
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Electricity shortage: take precautions and develop scenarios

Electricity shortage: take precautions and develop scenarios

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Energy transition, geopolitical crises, supply shortages - these and other factors could lead to an electricity shortage. The large consumers are called upon to develop scenarios for a quota system. We at the VAP are actively working on this.

Electricity is available - that was taken for granted in Switzerland for decades. This is now being called into question: on the one hand, the replacement of fossil fuels by sustainable energy sources will limit the available energy resources in the coming years. On the other hand, geopolitical conflicts and supply bottlenecks may have an additional negative impact on their availability, as the current situation shows us.

Active participation required

Against this background, the Confederation has called on all large consumers to cooperate in the preparations for a possible electricity shortage. If an electricity shortage does indeed occur, the rail sector will have to restrict passenger transport services. Freight transport is to be maintained in line with demand.

Freight transport plays a key role

The railways play a system-relevant role in freight transport with domestic, import and export traffic for the supply of the economy and society. If a massive power shortage occurs, the freight logistics capability should basically remain intact. However, it must adapt to the changed demand.

This is also the great unknown. At present it is not possible to draw up reliable scenarios for the development of demand in the event of an electricity shortage. Certainly, the demand for transport capacity will change noticeably both in Switzerland and in our neighbouring countries. But depending on the sector, it may fall as well as rise.

Viewing rail operations as a system

To ensure that rail freight traffic can continue to roll even in a crisis situation, the sector must react to the changed demand in a timely manner with an adapted transport offer. This is only possible if the entire rail operation is viewed as a system. In other words, all operationally relevant functions must remain functional.

Scenarios in progress

In order to curb energy consumption in the event of a crisis, passenger transport will be guided by the reduced timetables that it has already drawn up and implemented in the pandemic year 2020. In freight transport, possible scenarios are being developed in close dialogue with the logistics sector and with a view to the economic supply of the country. According to the mandate, coordinated scenarios should be available by the end of 2022. We at the VAP are actively contributing our knowledge and experience to this process.

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13.07.2022 | Freight Transport Industry Sustainability , ,

by | Jul 13, 2022 | Freight Transport Industry, Sustainability

Energy transition, geopolitical crises, supply shortages – these and other factors could lead to an electricity shortage. The large consumers are called upon to develop scenarios for a quota system. We at the VAP are actively working on this. Electricity is...
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Investing in the future with the DAC

Investing in the future with the DAC

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The digital automatic coupler (DAC) is much more than what its name suggests. It is the basis for the complete digitalisation and automation of rail freight transport in Switzerland - and thus a far-sighted investment in the future. 

Rail freight 4.0 

We at VAP are committed to a competitive rail freight system in order to ensure that our members have a free choice of transport mode. To this end, we are active at various levels. One is the digital automatic coupling, or DAC for short. With this, European rail freight can reach the next dimension of modernisation.  

The DAC allows automatic coupling, as the name suggests. But that is by far not all. We should rethink Swiss rail freight transport with its cross-system processes as a whole. In this view, the DAC enables a continuous power and data transfer in the train. Such a transfer is the prerequisite for the digitalisation and automation of rail freight transport. It is tantamount to a quantum leap in quality and customer benefit, as all data is available digitally via all interfaces and logistics participants. Digital train control will also lead to a groundbreaking flexibilisation of network use and thus to a significant increase in network capacity. This offers rail freight transport the unique opportunity to play a key role in multimodal logistics. 

Genuine innovation for 100 years

The last real innovation in European rail freight transport was electrification. It was 100 years ago. As a result, the competitiveness of rail freight has steadily declined. With the investment in the DAC, rail freight transport can now catch up on several stages of development at once. Because it offers new functions with groundbreaking advantages (cf. Figure 1). 

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Figure 1: The DAC brings more benefits than the automation of the coupling process.

Rail freight transport as the backbone of supply

Rail freight transport is a central component of the supply of goods. In Switzerland alone, we expect freight transport volumes to grow by 30 percent by 2050. Transport capacities on road and rail are limited. Capacity expansion is mainly possible through improved interfaces of the multimodal logistics chains. And rail freight transport also has a lot to offer in terms of sustainability. Transport accounts for one third of greenhouse gas emissions each year. With the Green Deal in Europe and the long-term Climate Strategy 2050 in Switzerland, politicians have set ambitious goals. Low-emission rail transport is proving to be extremely competitive.

Support needed

Leading rail freight transport into a new era of progress with the DAC cannot be achieved single-handedly. Our industry is dependent on support. This includes, on the one hand, political commitment to ensure seamless coordination between Switzerland and the EU. On the other hand, it requires financial support. Because the industry players cannot bear the high initial investments alone. The added value of the DAC is designed for the long term and distributed among several market participants (cf. Figure 2). In our view, a deliberate start-up financing by the federal government is imperative. But the overriding goal must remain self-sustainability.

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Figure 2: The benefits of the DAC can be seen in the long term and are distributed among several market participants.

Considered retrofitting

We consider it sensible to retrofit the existing fleet of wagons restrictively and to concentrate on young and market-relevant wagons. Wagon owners should only retrofit their wagons if this is cheaper over time than buying new ones. In addition, the Confederation should provide for a scrapping allowance for wagons that have not been written off, the use of which the wagon keeper can decide himself. The fact is that a large number of wagons must be converted in a coordinated manner within a short period of time so that the wagons remain compatible with each other and the DAC unfolds its added value as soon as possible.

You can find more on the subject in this presentation.

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01.07.2022 | Financing Freight Transport Industry Innovation , , , ,

by | Jul 1, 2022 | Financing, Freight Transport Industry, Innovation

The digital automatic coupler (DAC) is much more than what its name suggests. It is the basis for the complete digitalisation and automation of rail freight transport in Switzerland – and thus a far-sighted investment in the future.  Rail freight 4.0  We at VAP are...
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Ensure Switzerland-EU interoperability

Ensure Switzerland-EU interoperability

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On 24 June 2022, the Joint Committee on Land Transport acknowledged the importance of harmonised rules for Switzerland-EU land transport. We think: More is needed for sustainable interoperability. What is needed now is a coordinated transport policy.

In 1999, Switzerland concluded a land transport agreement with the European Union (EU). This guarantees mutual market access for transporters from both sides of the Swiss border. The regulations for cross-border goods transport by rail and road have been harmonised.

Switzerland partially left out

With the NRLA, Switzerland expanded the European rail corridor into a flat railway and successfully implemented its modal shift policy with the Distance-related Heavy Vehicle Fee (HVF) and a ban on cabotage, night and Sunday driving. The modal split in transalpine transit traffic is over 70% in favour of rail, which is considered an international benchmark. However, this pleasing performance record should not hide the fact that, compared to member states, Switzerland does not currently have full market access. The Swiss railway network is not yet an integrated part of the European Interop network.

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Sticking to the Agreement on Land Transport

At its half-year meeting on 24 June 2022, the Joint Committee on Land Transport emphasised the importance of the agreement. However, unresolved political differences between Switzerland and the EU are blocking its further development. Such further development is urgently needed within the framework of the technical pillar of the 4th EU Railway Package.

Since 2019, Switzerland's cooperation with the European Railway Agency (ERA) has been governed by a temporary transitional solution. The Joint Committee discussed a further extension of this transitional solution. This would facilitate Switzerland's procedural involvement in simplified authorisations for cross-border traffic as well as its technical participation in innovation projects for the digitalisation and automation of the railways.

Federal Council in demand

We at the VAP are convinced that Swiss rail freight transport must expand its market access and not miss the boat on European innovation. With this credo, Josef Dittli, member of the Council of States, submitted interpellation 22.3566 on 9 June 2022. He is asking the Federal Council to answer the following questions:

  1. How does the Federal Council intend to ensure the necessary continuation of the rail packages within the framework of the EU-CH land transport agreement?
  2. How does the Federal Council intend to achieve the implementation of the technical pillar of the 4th EU railway package in Switzerland and secure free cross-border rail traffic in the long term?
  3. How does the Federal Council intend to achieve Switzerland's early full membership in the European Railway Agency ERA?
  4. How does the Federal Council intend to secure and complete the Swiss seat in the EU RISC as an important management and decision-making body?
Ensure full interoperability

For the economy in general and for our members in particular, it is crucial that previous achievements are secured in the long term. We consider it absolutely necessary that Switzerland is represented as an equal partner in central European bodies as soon as possible and that transport policy in cross-border transport is coordinated.

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27.06.2022 | Freight Transport Industry Interoperability Politics , , , ,

by | Jun 27, 2022 | Freight Transport Industry, Interoperability, Politics

On 24 June 2022, the Joint Com­mit­tee on Land Trans­port ack­now­led­ged the importance of har­mo­nis­ed rules for Switz­er­land-EU land trans­port. We think: More is nee­ded for sus­tainable inter­ope­ra­bi­li­ty. What is nee­ded now is a coor­di­na­ted trans­port...
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Future of rail freight transport in the area

Future of rail freight transport in the area

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Shaping rail freight transport for the future
The Federal Council's report  Bericht «Future orientation of rail freight transport in the area»[1] of March 2022 provides a welcome opportunity to rethink the Swiss rail freight transport system with its intermodal competition and cross-system processes as a whole. A holistic new conception starts not only with the (start-up) financing of the EMLV or the DAC, but with all processes, incentive instruments, market mechanisms and interfaces of multimodal freight logistics in Switzerland. The goal must be a self-sustaining, market-based rail freight transport system that includes all freight railways without discrimination on the basis of intramodal competition and supports shippers as a reliable partner. In this context, any financing based on the proven model in transit traffic must primarily benefit the customers of all freight railways and offer performance-based, competition-neutral incentives without any discrimination. Only in this way and only with combined forces can innovations and investments by the private sector in rail freight transport develop. And only in this way can rail freight transport in the countryside be made fit for the future.
Federal Council considers long-term financial support
According to the report, the Federal Council wants to maintain single wagonload traffic (SCC) in the future and does not rule out long-term financial support. According to the definition of the Federal Office of Transport (FOT), single wagonload traffic comprises the transport of groups of wagons in unaccompanied combined transport (UCT) and conventional rail freight wagons bundled together for the main run. The Boards of Directors of SBB AG and SBB Cargo AG assess in their Financial Report 2021[2] a subsidisation of their rail freight services as necessary and probable. The Federal Council and the federal companies are thus apparently in agreement that financial support for rail freight transport is necessary in the area. However, they base their assessment of volume and financial viability solely on information from SBB Cargo. The other freight railways, most of which are organised in the private sector, are not included in this assessment. In our view, a new perspective is urgently needed here.
Adopting a new perspective
SBB Cargo has been operating nationwide rail freight services as a monopoly since the 1999 Rail Reform I - with little success, as a review 25 years after the parliamentary decision shows. This must change: The freight railways active throughout Switzerland and their customers can join forces and, under the leadership of the Wagonload Transport Interest Group (IGWLV)[3], redesign rail freight transport in Switzerland.[/et_pb_text][et_pb_image src="https://cargorail.ch/wp-content/uploads/2022/07/Stossrichtungen-aus-Bericht-BAV-vom-31032022.jpg" alt="Abbildung 1, Seite 51 im Bericht «Zukünftige Ausrichtung des Schienengüterverkehrs in der Fläche»" title_text="Abbildung 1, Seite 51 im Bericht «Zukünftige Ausrichtung des Schienengüterverkehrs in der Fläche»" _builder_version="4.16" _module_preset="default" global_colors_info="{}"][/et_pb_image][et_pb_text _builder_version="4.18.0" background_size="initial" background_position="top_left" background_repeat="repeat" global_colors_info="{}"]

Figure 1, page 51 in the report «Future orientation of rail freight transport in the area».

For the further development of rail freight transport in the area, the report presents two directions (Figure 1): one involves the discontinuation of EMLV, the other the financial promotion of EMLV. From the VAP's point of view, this is too narrow a view. A change of perspective is necessary in two respects: First, actors need to redefine their understanding of their roles and rethink their processes. Secondly, a neutral view of the financial situation is needed. For neither the envisaged technical advances (keyword digital automatic coupling DAC) nor the purely internal view of SBB Cargo can bring about a reorganisation. This should also be the focus of the current discussion about the future. The organisational form shown in the report (Figure 2) represents a mental jumping-off point for working out further variants of directions.

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Figure 2, page 50 in the report «Future orientation of rail freight transport in the area».

Fact-based decisions

In order to assess the financing requirements of regional rail freight transport, it is imperative to have an analysis of the economic viability carried out by external neutral experts. If surface rail freight is indeed unprofitable, a distinction must be made as to whether SBB Cargo's monopoly position or the system itself is responsible. The neutral third party must also examine whether economic viability, as required by the Freight Transport Act (GüTG[4]), is currently being pursued at all. Only when a detailed analysis of the current situation is available can parliament decide on appropriate measures.

Limit funding

If financial support proves to be undoubtedly appropriate, it should be considered as temporary financing for a fundamental new concept - not as permanent subsidisation. Temporary start-up funding can support the development of a competitive rail freight transport system until its simultaneous digitalisation and automation and the commissioning of new network elements from the 2035 expansion stage have been completed. Permanent funding, on the other hand, would undermine the market-based incentives for competitiveness and self-sufficiency of rail freight transport and make further development of rail freight transport in Switzerland impossible.

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[1] "Future orientation of surface rail freight traffic", Federal Council report in response to KVF-S postulate 21.3597 of 10 May 2021. In 1999, with Rail Reform I, Parliament transferred the monopoly for the operation of surface rail freight traffic to SBB Cargo AG. Its share of rail freight traffic in domestic, import and export traffic is around 60%. The remaining 40% is carried in block trains via sidings and terminals.

[2] «SBB Financial Report 2021», chapter «Bewertungsunsicherheiten rund um die Coronapandemie und um das Geschäftsfeld Cargo Schweiz», p. 84.

[3] The Wagonload Transport Interest Group (IGWLV) was founded in 2018. It represents the interests of VöV, SBB Cargo and VAP with the mandate to modernise rail freight transport in the area and make it more efficient, in accordance with Art. 3a of the Freight Transport Act. President: Frank Furrer, Secretary General VAP, Vice President: Désirée Baer, CEO SBB Cargo --> Reports on IG WLV

[4]«Bundesgesetz über den Gütertransport durch Bahn- und Schifffahrtsunternehmen (Gütertransportgesetz, GüTG)» Art. 2 Para. 2

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26.06.2022 | Financing Freight Transport Industry Operations Politics , , , ,

by | Jun 26, 2022 | Financing, Freight Transport Industry, Operations, Politics

Sha­ping rail freight trans­port for the future The Fede­ral Council’s report  Bericht «Future ori­en­ta­ti­on of rail freight trans­port in the area»[1] of March 2022 pro­vi­des a wel­co­me oppor­tu­ni­ty to rethink the Swiss rail freight trans­port sys­tem...
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Freight Transport Forum: the industry stands together for progress in rail freight transport

Freight Transport Forum: the industry stands together for progress in rail freight transport

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On 3 May 2022, the popular Freight Transport Forum finally took place again after three years. The most important players and representatives from the shipping industry from all over Europe met to refresh their expertise and exchange ideas with colleagues across companies. The chances of making rail freight transport fit for the future in a joint effort are good!

Interesting approaches

The freight transport master plans and rail freight transport in particular, which were launched in Germany and Austria, provide a comprehensive overview of the political strategies and measures. Something comparable is lacking in Switzerland; instead, there is still a strong focus on the individual modes of transport. The VAP therefore continues to pursue an overall view of freight transport and logistics, in close cooperation with economiesuisse and ASTAG. Austria presents an amendment to the Waste Management Act. This stipulates that transports of waste with a total weight of more than ten tonnes, starting from a defined transport distance (decreasing between 1.1.2023 and 1.1.2026 from 300, 200, 100 km), must in future be carried out by rail or by other means of transport with equivalent or lower pollutant or greenhouse gas potential (e.g. propulsion by fuel cell or electric motor). Similar developments can also be seen in the canton of Zurich, for example in the Ordinance on the Transport of Excavated Material and Aggregates by Rail of 3 February 2021, which requires that a significant proportion of excavated material must be transported by rail - or else a substitute levy is payable. In principle, we welcome such regulations to achieve the environmental goals, but we do not consider a specification of the choice of means of transport by means of gentle coercion to be very effective. Rather, the VAP strives to make the railways fit and attractive for shippers, so that paternalism is not necessary.

We therefore consider the common interest in promoting digitalisation to be very positive. As never before, the players in the shipping industry stand united for progress. It is impressive how the various players networked across Europe have decided in favour of digitalisation and want to use this lever together to make rail freight transport fit for the future. Various presentations showed that the Digital Automatic Coupling (DAC) not only brings considerable relief for mechanical work, but is above all a switch for the connectivity of an entire train. This is the prerequisite for digitalisation, which is so important for rail freight transport and which has long since taken place in other industries. With more efficient and transparent processes, rail can become competitive alongside other modes of transport. The motto is collaboration and coopetition, which we at the VAP Association of Shippers also support.

VAP members can download the speakers' presentations here with their personal login.

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The course of the forum in detail

The morning revolved around the question «Transport policy in the green rush?». Gilles Peterhans, Secretary General of UIP explained the transport policy issues at European level. Malte Lawrenz, Chairman of VPI Germany, showed the transport policy framework for Germany, how priority should be given to rail and what funding is needed to be able to implement the master plan for rail freight transport. Frank Petutschnig, Secretary General VPI Austria, presented the situation in Austria on the same topic, where the focus is on the overall view of freight transport, namely the most efficient choice of transport mode in terms of energy demand per tonne. Désirée Baer, CEO of SBB Cargo, added to the situation of the transport policy framework in Switzerland with her presentation and introduced the Wagonload Transport Interest Group (IG WLV), the platform for cooperation between railways and shippers.

In the subsequent panel discussion it became clear that the course for the future of rail freight transport has been set for innovation and that the next step is to define how the investments will be financed. It became clear that the innovations affect all players and that a collaborative approach is therefore the right way forward. Cooperation and competition - or coopetition - are two other buzzwords that are not only desired by the rail actors, but also in the interaction between rail and road.

The afternoon was divided into the two exciting key topics «Innovations & possible implementation» and «Digitalisation with concrete measures». Jürg Lütscher, expert in innovation and regulation at the VAP, spoke about the automation of rail freight transport in Switzerland. He emphasised the importance of optimising processes and interfaces in the course of innovation, the so-called interoperability. Ralf Marxen, Head of External Technical Affairs at Deutsche Bahn AG, spoke about the path to the intelligent goods train: «From Shift2Rail to Europe's Rail». He pointed out important milestones for innovation, with the Digital Automatic Coupling (DAC) taking on the key function for digitalisation and enabling, for example, automated processes and monitoring, as well as precise customer communication, thus raising the service level of the transport of goods by rail many times over. Stefan Hagenlocher, Managing Director of HWH and TIS Project Manager, who was connected live via video channel, showed what the Technical Innovation Circle for Rail Freight Transport (TIS) requires for digital and competitive rail freight transport. He clearly communicated that there will be no complete automation of rail freight transport without DAC and that standardisation of the technical aspects and a coordinated migration strategy are essential.

The two wagon hire companies Niko Davids, Chief Digital Officer, VTG AG, and Christoph Becker, Head of ECM II and Safety Management at Wascosa AG, demonstrated their digitalisation strategies to strengthen the competitiveness of rail freight transport. Their message too - especially as the two competitors were already sending out a signal with their joint appearance: «Collaboration and coopetition: digitalisation is not a project for one individual! Only through active and open cooperation will there be a benefit for the sector!»

Jörg Bisang, Head of Product Management ZKE, impressed with the possibilities that digitalisation of technical vehicle control with «Wayside Intelligence» already brings today, and called on RUs and wagon keepers to make use of these possibilities.

In the concluding panel discussion it then also became clear that everyone wants to focus together on the migration of the DAC, in the sense of interoperable innovation. This cooperation concerns the entire railway system, which is why it is important to work together on this not as competitors, but as an innovation team that exchanges ideas about their goals. Quick and courageous decisions can enable efficient implementation.

We look back on a successful Freight Transport Forum, where everyone enjoyed finally being able to meet and exchange ideas in the «real world» again.

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30.05.2022 | Events Freight Transport Industry Innovation Interoperability , , , ,

by | May 30, 2022 | Events, Freight Transport Industry, Innovation, Interoperability

On 3 May 2022, the popular Freight Transport Forum finally took place again after three years. The most important players and representatives from the shipping industry from all over Europe met to refresh their expertise and exchange ideas with colleagues across...
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4th EU railway package: Making the most of the innovation boost

4th EU railway package: Making the most of the innovation boost

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Climate protection is at the top of the political agenda in Europe. A high demand for mobility of people and transport of goods has been leading to massive climate-damaging emissions in our intensively industrialised region for a long time. On the way to net zero, policymakers expect the rail sector to consistently exploit its advantages and make a substantial contribution to more resource-efficient logistics. Thanks to innovation, we have the chance to make the production of freight transport more efficient, ergo more cost-effective and more customer-friendly, and on top of that, we increase the availability of train paths on our existing rail networks.

Railway sector must digitalise

The conditions for meeting these political expectations are actually good. Europe has a dense rail network on which the railways can move large masses with low energy and space requirements compared to other modes of transport, and the important centres are all connected. However, many standards and working methods in the railway sector are massively outdated. And the specific characteristics of the individual countries sometimes diverge diametrically. This is a major reason why the increase in performance demanded by the rail sector has so far failed to materialise. The rail sector can only convincingly fulfil the high political expectations - to take on the key role in the implementation of climate policy - if it fundamentally renews itself. To do so, it needs a system-wide innovation push and harmonised sovereign rules in line with the state of the art.

EU-wide harmonised interoperability

This is where the technical pillar of the 4th EU Railway Package comes into play. It aims at a systematic harmonisation in international standard gauge traffic. The member states are called upon to apply the interoperability standards consistently and to harmonise the corresponding approval procedures internationally. In this way, the existing hurdles for cross-border traffic will be removed and the way opened for joint European innovation steps. This makes the technical pillar decisive for successful innovations in the European rail sector.

These comprise four thematic fields and will significantly improve the market position of rail transport in the coming years:

  • Internationally harmonised sovereign regulations
  • Cross-border compatible technical systems
  • Internationally harmonised processes for safety-relevant activities
  • Joint activities for system-wide guided further development
  • Automation becomes marketable

Europe's Rail Joint Undertaking (EU-Rail) has initiated an important cross-European development with the European Freight Digital Automatic Coupler Delivery Program (EDDP). This is intended to enable digitalisation and automation in freight transport. The development work should be so far advanced by 2025 that digital automatic couplers are available ready for series production for the upcoming migration of rolling stock.

Switzerland in the middle

From both an economic and a geographical perspective, it makes sense for Switzerland to participate actively and consistently in the ongoing EU activities - even more so in the context of the tug-of-war over the institutional framework agreement. The triggered revision of the Swiss Railway Act (EBG) for the autonomous adaptation of our sovereign regulations to the established Interop and Safety Directive of the 4th EU Railway Package is a welcome impetus for actively tackling the envisaged innovation packages now. The Swiss railway sector should and will use this innovation push to its advantage as soon as possible, in order to remain a competitive partner in the highly competitive transport sector in the future.

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28.04.2022 | Innovation Operations , , , ,

by | Apr 28, 2022 | Innovation, Operations

Climate protection is at the top of the political agenda in Europe. A high demand for mobility of people and transport of goods has been leading to massive climate-damaging emissions in our intensively industrialised region for a long time. On the way to net zero,...
mehr