German states call for compensation to rail freight amid renovations

Image: Shutterstock. ON-Photography Germany

The upcoming German rail renovations could cause a reverse modal shift. Expected disruptions and additional expenses will likely reduce the competitiveness of rail and make road transportation more attractive. German states have taken note and are appealing for proper compensation for the rail freight sector.

Germany is planning large-scale renovation works on its rail network, which will lead to major disruptions for rail freight. The German states are demanding that the funding of replacement and diversionary routes are included in the construction costs. German rail freight association Die Güterbahnen reacts supportively to the states’ appeal, which may be referred to a ‘mediation committee’.

Reverse modal shift

The German rail freight association points out that an expected reduction in trains and loading capacities are set to increase prices drastically from next year onwards. Moreover, detours and the following costs for personnel, energy and vehicles will likely exacerbate the situation.

In turn, the already troubled competitiveness of rail freight compared to road transportation will take a turn for the worse, says Die Güterbahnen. A reverse modal shift may follow as companies switch back to truck transportation. This will hurt Germany’s stated goal of shipping 25 per cent of goods via rail by 2030.

“If your telecommunications provider required you to book a tariff that was 30 percent more expensive and had less capacity twice a year for five months at your own expense because of line renewals, you would be looking for alternatives at full speed. That’s what happens to freight railways and their customers – only the alternative is not another rail network, but the road”, managing director of Die Güterbahnen Neele Wesseln says.

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Author: Dennis van der Laan

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German states call for compensation to rail freight amid renovations | RailFreight.com

German states call for compensation to rail freight amid renovations

Image: Shutterstock. ON-Photography Germany

The upcoming German rail renovations could cause a reverse modal shift. Expected disruptions and additional expenses will likely reduce the competitiveness of rail and make road transportation more attractive. German states have taken note and are appealing for proper compensation for the rail freight sector.

Germany is planning large-scale renovation works on its rail network, which will lead to major disruptions for rail freight. The German states are demanding that the funding of replacement and diversionary routes are included in the construction costs. German rail freight association Die Güterbahnen reacts supportively to the states’ appeal, which may be referred to a ‘mediation committee’.

Reverse modal shift

The German rail freight association points out that an expected reduction in trains and loading capacities are set to increase prices drastically from next year onwards. Moreover, detours and the following costs for personnel, energy and vehicles will likely exacerbate the situation.

In turn, the already troubled competitiveness of rail freight compared to road transportation will take a turn for the worse, says Die Güterbahnen. A reverse modal shift may follow as companies switch back to truck transportation. This will hurt Germany’s stated goal of shipping 25 per cent of goods via rail by 2030.

“If your telecommunications provider required you to book a tariff that was 30 percent more expensive and had less capacity twice a year for five months at your own expense because of line renewals, you would be looking for alternatives at full speed. That’s what happens to freight railways and their customers – only the alternative is not another rail network, but the road”, managing director of Die Güterbahnen Neele Wesseln says.

Also read:

Author: Dennis van der Laan

Add your comment

characters remaining.

Log in through one of the following social media partners to comment.