The Swiss SBB Group brought its finances back to the black in 2023 for the first time since 2019. Strong passenger transport performance led the Group’s recovery. Cargo performance was still in the red for 2023, despite the closing gap of losses (-40 million francs against -191 million francs in 2022). At the same time, overall transport performance decreased by 7.5 per cent.
SBB indicated that the main drivers behind the poor performance of SBB Cargo were “price pressure, the structural deficit in single wagon traffic and the general economic slowdown”. It should be noted that SBB Cargo International also recorded lower volumes compared to 2022, reporting a 0.8 per cent drop. In this case, cross-border infrastructure restrictions, for instance, the Gotthard Base tunnel closure and disruptions in Germany, played a big part in the slow-down.
It may be surprising that despite worsened performance and dropping volumes, SBB Cargo managed to substantially reduce its losses last year. However, one should not forget that this improvement is somehow artificial, considering a substantial write-down (around 130 million francs) in the company’s book value last year.
Single wagonload key negative factor
SBB Group’s statement that the structural deficit of single wagonload transport (SWL) drove last year’s poor performance is indicative of the ongoing debate in Switzerland about this transport segment. In an exclusive interview with RailFreight.com last October, an SBB Cargo spokesperson noted that “SBB intends to eliminate the structural deficit in freight traffic with the support of the Confederation in single-wagonload traffic”.
In doing so, the first step was to return the company to state hands to provide easier access to
state funds for SWL. The next step would be to simplify SWL’s structure to facilitate the funding process by streamlining the needed investments accordingly and providing a clear focus when applying for them. The Swiss Railway Group insisted on this approach during its latest financial report, recognising that SWL’s deficits need to be addressed as soon as possible and that the Swiss government will have a big role to play in that.
‘Deal with the problematic child’
VAP, a Swiss shipper’s association, agrees that SWL conditions need to improve substantially. However, it does not agree with SBB’s approach. VAP believes that SBB Cargo continues to be the Group’s “problematic child” and thinks that direct state involvement and subsidisation of SWL will not do the trick. Additionally, it does not agree with SWL’s restructuring.
Instead, the shipper’s association argues for a different take on the situation that will involve increasingly less state involvement. “We are calling for targeted, degressive and temporary bridging funding for a sustainable transformation of the SWL towards self-sufficiency. Only in this way can the SWL modernise and grow,” said the organisation.
