The Federal Council released its message on the Goods Transport Act to the Parliament in January. It aims to modernize the comprehensive single-wagon load transport (EWLV) and establish the foundation for its economic viability. Despite various reservations, the Federal Council proposes investment subsidies, temporary operating compensations, and incentives for shippers.
Key Points:
- Federal Council aims for economic viability
- EWLV to undergo fundamental restructuring and modernization
- Support for EWLV operation during the modernization phase
- BAV criticizes industry guidelines
- Overview of the proposal
- What’s next
Federal Council aims for economic viability
On January 10, 2024, the Federal Council adopted the message on the Goods Transport Act (in German) for Parliament. We, from VAP, welcome the continued pursuit of the favored Variant 1. With this proposal, the Federal Council intends to modernize rail freight transport technically and organizationally, strengthen multimodal transport chains, and better integrate shipping. The overarching goals are to enhance supply security nationwide, promote multimodality, and contribute to the federal environmental and energy targets. This involves securing current area coverage, gradually increasing the share of rail freight transport, and laying the groundwork for economically independent operation.
EWLV to undergo fundamental restructuring and modernization
The basis for this is a comprehensive restructuring of the EWLV, or network traffic, with associated technological modernization (especially digitization), integration into the Swiss logistics system, and the establishment of non-discriminatory intramodal competition. The latter is expected to significantly improve the quality and efficiency of logistics services and simplify future innovations. The proposal allocates investment funds of CHF 180 million for the introduction of digital automatic coupling (DAK). Additional investment funds are earmarked for digitized process optimizations, data exchange platforms, and similar initiatives.
Support for EWLV operation during the modernization phase
To maintain current area coverage, the operation will be financially supported for eight years during the modernization phase. Allegedly uncovered costs will be covered, and compensations will decrease in line with the progress of the restructuring, determined in multi-year performance agreements with all freight railways involved in network traffic.
BAV criticizes industry guidelines
To ensure the success of this transformation and stable EWLV operation during the restructuring phase, the industry has proposed guidelines for specific measures and support criteria. However, the Federal Office of Transport (BAV) criticizes these as insufficient and demands further revisions. It particularly highlights the lack of perspective for a comprehensive redesign to enhance efficiency and utilization, foreseeing a tendency towards structural maintenance and further service reduction. The VAP understands the BAV’s reservations, as the guidelines represent a compromise between shippers and freight railways, with significant concessions made by VAP in the interest of the cause. Substantial revisions are now necessary, especially from the perspective of freight transport customers as users of logistics services.
We are prepared to significantly support further development. A comprehensive operational control system is seen as a crucial prerequisite for this transformation, serving as an evaluation tool for the effectiveness of measures and incentives, along with the establishment of a digital platform. The transformation should be methodically structured and implemented in a targeted manner as a project.
Overview of the proposal
- Investment subsidies: The Federal Council allocates CHF 180 million for the introduction of DAK, covering approximately one-third of the restructuring costs. The conversion of rolling stock must be coordinated across Europe and is expected to be completed by 2033. DAK is anticipated to substantially improve the productivity and quality of rail freight transport.
DAK Factsheet (PDF, 971 kB) - Operating compensations: To maintain EWLV at the current comprehensive level during the restructuring phase, the Federal Council proposes to financially support it for eight years on a degressive basis. By the end of this period, economic viability should be achieved. For the first four years, it requests CHF 260 million.
Freight Transport Factsheet (PDF, 712 kB) - Incentives for shippers: Permanently planned are handling and loading contributions, along with compensation for the uncovered costs of the ordered freight transport service, totaling CHF 60 million per year.
Read the complete message on the Goods Transport Act.
What’s next
- In the first half of 2024, open points between BAV and the industry will be discussed, and guidelines will be supplemented and clarified accordingly.
- Within this framework and following the approval of the revised law, a tendering process for various service packages within network traffic is expected to start by the end of 2024.
- Negotiations on potential performance agreements are planned for 2025, allowing any support measures to take effect in early 2026.
For further details, refer to this joint press release from VAP, LITRA, ASTAG, IG Kombinierter Verkehr, and VöV.
