In a bid to combat the crippling impact of skyrocketing track access charges, European rail operators are calling for urgent short-term support measures. The clarion call comes amidst a flurry of criticism following Germany’s recent hefty price hike program, among others.
Apart from Germany, which will increase TACs by 16 per cent, Sweden and Portugal are also in a similar course planning increases of 40 and 8 per cent, respectively. Rail freight operators ring the alarm, claiming that those short-term price hikes contradict the long-term planning they try to implement, thus jeopardising existing transport contracts with customers.
As a result, ERFA, the operators’ representative body, underscores that the EU and Infrastructure Managers should no longer use modal shift as their green and sustainable political banner, considering that their policies have a direct negative impact on rail operations, pressuring the already fragile market even more.
Also read: Rail industry lambasts DB’s largest ever track price increase programme
“Rail transport contracts are mostly set for 2-3 years, and Railway Undertakings and customers need multi-year stability regarding TACs to plan joint transport concepts. This is the basis for modal shift. Many contracts for 2025 have already been set long before railway undertakings were informed of any increases. This means contracts must be renegotiated, as rail freight undertakings cannot absorb costs,” stressed the association.
Neele Wesseln, Managing Director of the association Die Güterbahnen, underlined the impact of increased TACs in Germany. She claimed that the phenomenon is especially critical there, considering the country’s transit role and the fact that higher TACs do not correspond to the network’s quality.
Short-term support
To tackle the situation, political will is critical, according to Wesseln. She says so because, as ERFA also underlines, everything is currently at stake with higher prices, and the situation needs to be reversed. ERFA invokes Article 34 of the SERA Directive, which “provides the legal basis for the setting of charges, allows for time-limited compensation scheme for the use of railway infrastructure for the demonstrably unpaid environmental, accident and infrastructure costs of competing transport modes”. In simple words, ERFA asks for short-term financial support to balance short-term increases.
Back to the same discussion
The pressing need for collective action to tackle track access charging disparities has been a recurring theme in the industry. As highlighted in previous analyses, a unified approach is essential to mitigate the adverse effects on rail freight competitiveness.
Also read: Why a collective track access charging approach matters
The urgency for intervention is further underscored by the recurrence of TAC escalations across Europe. With charges on the rise, operators are grappling with mounting operational costs, exacerbating concerns over the sustainability of rail freight services.