‘A fairer rail freight market means fewer state-owned companies’

“There is no reason for the member states to act indirectly as market participants via state-owned, integrated companies”. This was stated in a joint paper by UIRR, ERFA, Die Güterbahnen and RailGood, which set out what they think are the most important measures for rail freight transport in Europe between 2024 and 2029. According to them, Member States should focus on infrastructure tasks and ensure safety and market fairness rather than having their own rail freight operator.
The four associations’ joint paper is addressed to the upcoming Council of Transport Ministers of the European Union and the political groups running for the European Parliament in this weekend’s European elections. Not having state-owned rail freight operators would be a revolution in the European sector. These entities own the largest market shares in their countries and often have international subsidiaries that also have a strong presence.

The joint paper, however, did not only focus on the role of Member States and state-owned rail freight operators. Other key points in the papers revolve around a more prominent role for rail in intermodality and a more harmonised infrastructure utilisation across the Old Continent.

Rail at the centre of intermodality

The main themes in the joint paper concerning intermodality are a more level playing field with other transport modes and better coordination on an EU level. For example, the four associations are asking for safety-relevant requirements for the road freight transport industry to match those of its rail counterpart. This would be achieved by “establishing minimum checks and corresponding penalties for infringements” when it comes to load weight and security as well as driver regulations.

Another way of ensuring fairer competition between road and rail, the four associations are claiming that “​​Infrastructure and environmental impact costs should be charged and used to expand the rail infrastructure”. In other words, they propose the creation of an EU-wide scheme for road tolls to fund rail infrastructure upgrades and expansion. Moreover, subsidies and tax exemptions for environmentally harmful fuels such as diesel and kerosene should be phased out.

Another issue highlighted in the joint paper is the one regarding Track Access Charges (TAC), which are increasing in many EU countries, and infrastructure closures. Concerning TAC, the associations said the should be set in a multimodal context in a multiannual framework. Moreover, there should be compensation schemes for interruptions of traffic along relevant rail lines. Railway closures are often a spine in the thorn for the rail freight industry as rerouting is not always an option and, when it is, it is often an expensive one.

Compensation schemes and a clear ERTMS strategy

Regarding infrastructure, the focus of the four associations is to improve the internationality of rail freight across the EU. However, the directives proposed in the joint paper are a little vague. The document stressed that rail infrastructure planning should be harmonised between passengers and freight and that predictive maintenance processes should take place on a European level. Moreover, it stated that “infrastructure managers should be regulated and incentivised to limit customer inconvenience when planning track work”.

Another key aspect analysed in the joint paper is the deployment strategy for the European Rail Traffic Management System (ERTMS). The four associations are asking for a shift from the technology push and focus on feasible implementation strategies. In other words, it is time to halt the constant update of ERTMS versions, which is causing significant headaches to the rail freight industry in Europe. To do this, the paper said that “the EU must gain more control over the Member States”, harmonise funding and simplify approval processes for a proper ERTMS rollout.

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