In the spring, the Council of States’ Committee for Transport and Telecommunications (KVF‑S) took up the total revision of the Goods Transport Act (GüTG) and triggered ground-breaking discussions on Swiss domestic goods transport in Parliament. Together with other stakeholders, we at the VAP will help shape this debate. Our aim is to find a workable compromise and to emphasise the interests of our members.
That’s what it’s all about:
- Good news for parliament
- First proposals from the KVF‑S
- Lively dialogue between the stakeholders concerned
- Challenges for the economy and European logistics as a whole
- Pain threshold reached
- This is the way forward
Good news for parliament
On 9 February 2024, the Swiss Federal Council published its dispatch on the Freight Transport Act (total revision of the Federal Act on the Transport of Goods by Rail and Shipping Companies). In our view, particular attention should be paid to the following financial aspects
- Operating charges: In order to maintain single wagonload transport (EWLV) at the current nationwide level during the conversion phase, the Federal Council plans to subsidise it financially on a degressive basis for a limited period of eight years. At the end of this period, the aim is to achieve self-sufficiency. It is requesting CHF 260 million for the first four years.
More on this in the freight transport factsheet. - Incentives for shippers: The plan is to introduce unlimited transhipment and loading contributions and to compensate for the uncovered costs of the ordered freight transport services for a total of CHF 60 million per year.
Initial proposals of the KVF‑S
The KVF‑S, as the preliminary advisory committee of the First Council, adopted the total revision of the GüTG this spring after consulting the industry, including the VAP. The discussions in parliament over the coming weeks and months will be groundbreaking for the future of rail freight transport across the country. In its detailed deliberations, the committee examined numerous points. The majority of the committee is of the opinion that the total revision of the GüTG is suitable for ensuring and improving sustainable interaction between the various modes of transport for Swiss transport policy. It suggests making the following changes to the content:
- Explicit strengthening of competition in freight transport
- Clear regulation of RailCom’s responsibility for reviewing and enforcing the non-discriminatory non-discriminatory provision of EWLV services
- Specification of the content of the guidelines for rail freight transport (basis for the service agreement in the EWLV)
- Transfer of authority to extend certain provisions (in particular compensation) from the Federal Council to Parliament
The committee is expected to finalise the detailed discussion with additional information from the administration at its next meeting. The matter will then go to the plenary session of the Council of States.
Lively dialogue between the stakeholders concerned
Over the past few weeks, we have held discussions – with the support of our members – with the stakeholders of the Wagonload Transport Interest Group (IG WLV), the Federal Office of Transport (FOT) and the SBB Cargo subsidiary of Swiss Federal Railways (SBB). Alexander Muhm, CEO of SBB Cargo, presented the rough concept for a transformation towards self-sufficiency to the VAP’s Executive Committee. Muhm’s presentation triggered an intensive discussion between the parties involved and further talks on the possibilities and risks.
Challenges for the economy and European logistics as a whole
A look at the statistics shows that the transfer figures in Switzerland and Europe are stagnating or even shrinking slightly. There are many reasons for this. In Germany, there is great uncertainty about potential investment programmes and the timing of a noticeable economic upturn. Italy and France are struggling with modest growth figures and high levels of debt. This, combined with consumer sentiment, is having a direct impact on companies and their financial situation.
In logistics, in addition to the closure of the Suez Canal or natural disasters, there are other enormous challenges such as major construction sites (e.g. on the German rail network) and corresponding diversion traffic or higher track prices. All of this is fuelling operating costs and putting pressure on the competitiveness of the railways. The state of overall European logistics is important insofar as the majority of goods used in Switzerland originate from abroad and influence the EWLV in and through Switzerland.
Pain threshold reached
Since our foundation, we have been committed to attractive, competitive and customer-oriented rail freight transport and thus to the best possible modal shift to rail. We are committed to this goal either as a partner to numerous freight transport stakeholders or with our own ideas and projects. In transport policy, we advocate sufficient capacity on all infrastructures, favourable logistics locations and sensible framework conditions.
In view of global competition and the current framework conditions for the Swiss economy, the shipping industry as our membership does not have to or cannot afford massively higher costs on the railway. Our members can no longer cushion the impact of mistakes such as the lack of (investment) strategy in the area of rolling stock over the last 20 years, the ongoing dismantling of infrastructure facilities (dismantling of tracks, construction of investment properties) or insufficient integration into overall concepts from the perspective of users and customers. The consequences of such mistakes, such as massive price increases (beyond inflation), are fatal for the economy and society. The competitiveness of rail compared to road is dwindling and the optimisation of the modal split is being thrown into disarray. In addition, increasing cost sharing for the operational use of service points can send the wrong signals.
For our members, the pain threshold has long since been reached. We are prepared to provide significant support for the further development and transformation of rail freight transport. Provided that those responsible ensure complete transparency regarding costs and their breakdown and take measures within a fair, compatible and harmonised framework.
The way forward
We are taking the findings from the numerous discussions with the KVF‑S and other stakeholders as an opportunity to initiate numerous activities within our membership and organise further coordination meetings. Anyone who would like to talk to us about logistics as the backbone of the Swiss economy is cordially invited to join the dialogue.
