The German government is cutting its spending on rail freight track access charge subsidies. Even if an increase in the infrastructure budget accompanies the subsidy cut, the rail freight industry remains critical. Wagon owners see the measure as a risk to Germany’s industrial base.
Following earlier critical statements from the industry, the Association of Freight Wagon Owners in Germany (VPI) has also shared its view on the subsidy cut. Germany’s plan includes shrinking funding for single wagonload (SWL) operations. This is the point VPI is particularly concerned about.
The SWL system, VPI explains, connects industrial sites throughout Germany to the rail network and enables transport in areas where block trains are not economically viable. “For many industrial companies, single wagonload traffic is essential for transporting goods by rail. Those who cut funding here not only jeopardise climate-friendly transport but also weaken Germany’s industrial base,” warns VPI Chairman Malte Lawrenz. Industries could lose access to rail transportation, were Germany to withdraw SWL subsidies.
No changes before the renewed TAC system
VPI argues that Germany should refrain from reducing subsidies for the time being. First, Berlin should come up with a new track access charge system. It is obliged to do so following a European Court of Justice ruling in March. The rail freight sector has argued for a system based on the marginal-cost principle, which is the standard in most countries. Such a format could reduce charges for rail freight by up to 54%, according to an INFRAS study.
“As long as no track access charge reform has been implemented, the existing subsidies must not be reduced”, VPI Chairman Lawrenz stated. “Otherwise, the costs for rail freight transport will continue to rise — at precisely the wrong time”.
Germany is aiming to implement a new TAC system by 2027.
