German rail operator Kombiverkehr’s business has suffered from adverse business circumstances in 2023. According to the company, its overall situation has become ‘acute’. It mentions falling demand, strikes, reduced quality and cost pressures as factors complicating performance.
Kombiverkehr states that it transported 19 million gross tonnes of goods by rail throughout the year. Over 800,000 truckloads of freight were shifted from road to rail transport. At the same time, the company saw a decline in both international and domestic transport consignments. Internationally, the number of consignments decreased by 17,5 per cent to approximately 630,000 truckloads. Domestically, consignment volumes reached almost 187,000 truckloads, down 10,1 per cent from the previous year.
A multitude of issues
The company explains the downturn in business results from various adverse factors. For example, the rail sector has been struggling with a decline in demand for its services due to a stagnating European economy. The war in Ukraine, broader geopolitical tensions and high inflation have negatively impacted European economies.
Moreover, the German rail network is continuously hindered by protracted infrastructure works that reduce the quality of rail services. According to rail organisation Die Güterbahnen, rail companies are faced with a lack of diversion routes and delays in renovation works that force continuous rerouting of trains. Kombiverkehr states that rerouting has increased its cost pressures.
It also suffered from rail strikes in France and Germany, weather struggles in the Alps, and the temporary closure of the Swiss Gotthard tunnel.
“These negative factors have even intensified in some areas and led to an acute situation overall,” according to managing director Armin Riedl. Kombiverkehr had already adjusted its transport prices in early 2023 and introduced energy charges following high energy costs. The company’s measures ‘negatively impacted its competitiveness and caused the price gap between road and rail to widen further’.
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Positivity and caution about EU directives
Kombiverkehr also points out that EU regulations are of huge importance to the future of intermodal transport. The Frankfurt-based operator is positive about the re-issuance of the EU directives on Weights and Dimensions and Combined Transport but also reacts positively to the internalisation of external costs in the transport sector. ‘We see an opportunity for a level playing field in which each mode of transport can utilise its specific advantages within the framework of a functioning market,’ says Kombiverkehr.
At the same time, the operator is concerned about the EU’s plans getting ‘stuck halfway’. The late introduction of new regulations may create an imbalance between road and rail. To prevent this, the EU would need a holistic approach that coordinates the revision of the Combined Transport directive with the Weights and Dimensions directive. Kombiverkehr calls for all external costs to be included in the calculations of emissions and efficiency, and not just carbon dioxide.