THE Swiss government is to provide SFr 260m ($US 322m) of funding over the next four years to support single wagonload freight traffic. The money is tied to a service agreement that was tendered by the government earlier this year. Swiss Federal Railways (SBB) was the only bidder.
The service agreement is based on the revised Freight Transport Act (GüTG), with which parliament decided earlier this year to fund single wagonload traffic for a limited period of eight years, divided into two tranches. The funding for the first four years will be used to reduce the impact of price increases on customers. It will also support SBB's existing investment in the automation and digitalisation of single wagonload traffic to ensure its future viability.
The government aims for single wagonload traffic to become economically self-sufficient within eight years. To do this it will have to reverse current heavy losses. In 2024, SBB Cargo Switzerland, the wholly-owned subsidiary of SBB, recorded a loss of SFr 81m on single wagonload services.
New operating model
The service agreement includes a new model to enable simpler, more efficient, robust and economical operation of single wagonload traffic. It is due to be introduced from the timetable change on December 13 next year. The goal is to run as many long, fast connections as possible through Switzerland, based on existing customer contracts and estimated volumes. Service points with insufficient demand will no longer be served by SBB Cargo, but will remain open to all operators as public infrastructure facilities. On the basis of current volumes, SBB estimates that around 98% of current single wagonload services will continue to run.
Last month, SBB Cargo announced that it had renewed a number of single wagonload agreements with long-term contracts for up to 10 years with major customers, including Migros (food retail), Fenaco (agricultural), Stahl Gerlafingen (steel) and Schweizer Salinen (salt). Deals have also been agreed with SIPRO (steel), Colas Switzerland (construction), and Mobilog, the logistics subsidiary of AMAG (automotive). Negotiations are continuing with customers in the chemical, construction, steel, food, and timber sectors.
SBB Cargo Switzerland currently transports approximately 11 million tonnes by single wagonload services, using more than 500,000 wagons and estimates that single wagonload freight removes up to one million lorry journeys from the Swiss road network. The operator is aiming to improve efficiency by procuring modern locomotives and rolling stock. However, earlier this year SBB Cargo revealed that it would be making job losses, with around 80 positions to be cut by the end of 2025.
“The investment [from the Swiss government in single wagonload freight] means that SBB will continue to offer the Swiss economy a nationwide range of climate-friendly rail services in the future," says Alexander Muhm, SBB’s head of freight transport.
