Italian rail freight associations urge minister to unlock subsidies
The three biggest Italian rail freight associations, FerMerci, FerCargo, and Assofer, are urging the Italian minister of transport Matteo Salvini to implement the FerroBonus initiative, a rail freight incentive that was approved eight years ago. Since summer last year, the subsidies have not been granted. RailFreight.com interviewed Giuseppe Rizzi, managing director of FerMerci, to better understand the problem.
The incentive, which is available for companies offering intermodal transport services, has not been paid for the period between August 2022 and August 2023. Moreover, the service cannot be applied retroactively. This is where the problem starts, explains Rizzi. There is a lack of information from the Ministry about the proper activation and a growing frustration from the industry.
The FerroBonus initiative
The FerroBonus initiative was approved by the EC in November 2016 to support the modal shift from road to rail. According to the Italian Ministry of Transport, the measure was addressing particularly the south of Italy, where road transport is still prevalent. The incentive is available for companies offering intermodal transport services as well as multimodal transport operators. The main requirement for companies applying for the incentive is that they have to agree to keep rail freight volumes significant and try to increase them.
The measure was extended until 2026 by the previous government coalition. Moreover, the European Commission intervened and approved the FerroBonus in Italy until the end of 2027. The Ministry’s delays in implementing this measure are worrying the associations. The money for the incentives has already been allocated. Further hold-ups, according to the three parties, would have a serious impact on the sector.
What’s needed from the Ministry
The ministry needs to approve the measure with an Implementing Decree to unlock the money. Without it, payments would not start before at least June or July, Rizzi said. “We don’t understand the ministry’s slowness”, he commented, saying that it is a bureaucratic issue. “One of the possible solutions to at least partly alleviate the burden on rail freight companies would be for the ministry to pay the money for next year now”, Rizzi explained.
He also highlighted that the resources will not get lost because the money for the incentives has already been allocated. However, they would be delayed one year, which would still leave a hole for companies.
Lowest amount since 2018
For the period 2023-2027, the funds for the FerroBonus are set at 22 million euros per year. This is the lowest amount since 2018, as Fermerci told RailFreight.com in mid-March. One of the main complaints brought up by Fermerci is the difference in state incentives between the road and rail freight sectors. To put this on context, 25 million euros were allocated as state subsidies for the road sector just for the period between 3 October and 16 November 2022. On the other hand, the rail industry is getting 22 million on a yearly basis for the next three years.
Also read:
- Italian province keeps incentivising rail freight in Brenner area
- Switzerland to partly finance new rail terminal in Milan
- Construction of key infrastructure for Scan-Med corridor in Italy started
You just read one of our premium articles free of charge
Want full access? Take advantage of our exclusive offer