Europe’s rail freight challenge: infrastructure alone is not enough

Europe has ambitious plans to shift freight from road to rail, but the results so far have been disappointing. According to the recent 2026 CER Economic Study on the European Rail Freight Sector, rail’s share of EU inland freight transport fell from 18.8% in 2014 to 16.6% in 2024. This decline reflects a combination of factors, including the limited prioritisation of rail freight, extensive infrastructure maintenance and renewal works in Germany, broader economic pressures and the greater flexibility of road transport operators to adapt to changing market conditions. Reversing this trend will require further investment in railway infrastructure, particularly in missing cross-border connections. But infrastructure is only part of the answer. Rail must also offer the reliability, cost and flexibility that businesses expect from their transport providers.

For the Baltic states, the challenge is particularly significant. The CER study estimates that the region lost approximately 27 billion tonne-kilometres of Russia-linked transit between 2014 and 2024. These volumes are unlikely to return. Russia had already been redirecting freight through its own ports, including Ust-Luga, long before the latest geopolitical developments.

The Baltic freight market therefore cannot simply return to its previous model. The question is how to develop new freight flows and connect the region more closely to European supply chains. Rail Baltica offers an opportunity to do exactly that. Establishing a continuous European-standard-gauge connection can help overcome one of the region’s longstanding infrastructure limitations. But the economic benefits will depend on how effectively this new connection is used.

This story was originally published by RailFreight.com. Read the full story at RailFreight.com →