Carload Traffic on Rail Has a Chance

At the Freight Transport Forum 2024 in Zurich, rail experts discussed the situation in rail freight transport. The comprehensive carload traffic has a very high market share in domestic transport across Europe. In export and import traffic, however, it is declining despite long distances. The reasons for this are market isolation and outdated production structures. The motto is exclusively state railways, exclusively in their home market. Carload traffic is understood as a system traffic.

(Pressebox: Zurich/Uitikon) However, a transformation of carload traffic into an automated, digitally connected, and internationally opened rail system is possible. The states offer political and financial support to the rail sector for this purpose. On May 7, 2024, leading figures from the European transport and logistics industry gathered at the Freight Transport Forum in Zurich to discuss the future of rail freight transport.

The event began with a welcome from Frank Furrer, Secretary General of the VAP, Association of the Transporting Economy. Dr. Peter Füglistaler, Director of the Federal Office of Transport (BAV), provided an overview of the current legal framework and challenges in Swiss freight transport. He believes: “The temporary financial support for carload traffic is for him a last attempt to save domestic freight transport on rail.” The DAK is the necessary means for this, which, with a 30% subsidy to the holders, is a nice offer.

Peter Westenberger, Managing Director of The Freight Railways in Germany, presented the digital rail and the VDV Charter from a German perspective. He called for financial support for carload traffic exclusively through the service routes, i.e., the reactivation or increase in volume at as many service points as possible. For competitors, it is very difficult, as the data situation is extremely opaque. Mag. Claudia Nemeth from the Federal Ministry for Climate Protection, Environment, Energy, Mobility, Innovation, and Technology (BMK) in Austria explained the instruments and strategies of Austrian transport policy with regard to rail freight transport and compared per capita investments in Switzerland, Germany, and Austria. She noted that Germany has room for improvement. Austria relies on active monitoring of measures and has submitted its first report at the end of 2023 and hired a specialized employee. Together with German Transport Minister Wissmann and Federal Councillor Rösti, Austrian Minister Leonore Gewessler supports the rapid introduction of the DAK.

Construction Sites and High Track Prices Threaten Rail Freight Transport

Ueli Maurer, Head of Intermodal Network at Bertschi AG, provided valuable feedback from a business perspective. Waiting for the DAK is impossible in light of the progress on the road; it must be implemented immediately. The current construction sites, which are still completely inadequately coordinated internationally, as well as energy and track prices fundamentally threaten the marketability of rail freight transport. He further demanded that infrastructure operators pass on the savings from complete closures to rail freight transport as compensation for their additional costs.

In the subsequent panel discussion, Westenberger spoke about the current chaotic construction site situation and the associated additional costs and called for an improvement in the quality of rail freight transport. Nemeth agreed but expressed optimism about the future of rail freight transport: “The current challenges are like a small child learning to walk: There are setbacks, but it will get better.” Füglistaler emphasized the necessity of corridor renovations and stressed the need for investments in infrastructure. Dr. Jens Engelmann, who moderated the panel discussion, raised the question of the effectiveness of funding measures and discussed the various approaches to supporting rail freight transport.

Füglistaler and Nemeth defended the role of state railways and warned against excessive criticism of them. The conclusion of the discussion by Engelmann: The rail contributes significantly to sustainability and must continue to be promoted, but challenges such as capacity bottlenecks and the costs of technological innovations must also be addressed.

Current Status of the Digital Automatic Coupler

Gilles Peterhans, Secretary General of the International Union of Wagon Keepers (UIP), shed light on the current status of the digital automatic coupler (DAK). He emphasized the difference between technical retrofitting and the associated transformation of the archaic rail freight transport. This is to be seriously redesigned to be competitive and transferred into a completely new rail system. Gregor Ochsenbein, Deputy Head of the Program Data for an Efficient Mobility System at the BAV, and Jürgen Maier-Gyomlay, Head of AK Logistics / IG WLV at the VAP, highlighted the importance of data ecosystems for efficient logistics.

Peter Sutterlüti, CEO of Cargo sous terrain AG, presented the concept of Cargo Sous Terrain (CST). The purely privately financed logistics solution is exclusively available for piece goods. The interplay of underground main runs and above-ground fine distribution has the potential to be a significant complement to rail and road. Stefan Kirch, Co-Founder and member of the management board at NEVOMO, presented the potentials of magnetic rail technology for a more effective and capacity-stronger freight transport solution. In particular, autonomous driving of freight cars in large-scale connecting tracks with a multitude of loading and unloading stations as well as consolidation points for shipping and receiving offers extraordinary savings potential.

Panel Discussion on Logistics in 2035

The event culminated in another panel discussion that addressed the future of logistics in 2035. In addition to the voluntary data release, the challenges of digital transformation, particularly regarding costs and collaboration with various stakeholders, were discussed. In conclusion, it was emphasized to be open to innovative solutions and not to be deterred by problems. Frank Furrer summarized the event with the both optimistic and challenging statement: “Everything is possible, as long as all industry players move forward pragmatically and with compromise in united forces.”

Photo: © VAP/cargorail