SBB: “Financial situation remains tense” as freight incurs losses

Swiss rail operator SBB recorded a half-yearly profit of 50,8 million francs (54,4 million euros), but stresses that the financial situation at the company remains tense. The profit was not thanks to SBB’s freight department, which incurred a loss of 42,6 million francs (45,6 million euros).

The first half yearly financial result for freight in 2024 amounted to minus 42,6 million francs. During the same period in 2023, it incurred a smaller loss at 18 million francs (19,3 million euros).

SBB attributes the downturn to lower volumes in both national and international traffic. “Individual sectors such as the construction industry caused the decline in national traffic. In international traffic, the economic situation, especially in Germany and Italy, the restrictions in the Gotthard Base Tunnel and the increasing construction activity on certain routes in Germany were the reasons for the lower result”, the company says in a press release.

Moreover, the year-long closure of the Gotthard Base Tunnel, staff shortages and low locomotive reliability led SBB Cargo to record a fall in punctuality. It declined by more than five percentage points, to 87,1 per cent.

The rail operator says that it wants help from the Swiss federal government to put more freight on the rails. “The structural deficit in SBB Cargo’s single wagon load transport is to be eliminated. The renewal of rolling stock, digitalization and automation as well as fair prices will help in this.”

SBB pursues financial stabilisation

The financial situation “remains tense”, according to SBB. “For sustainable financial stabilisation, the SBB needs an annual profit of around 500 million francs. Net debt is still too high at 11,6 billion francs.” The rail operator says that the press to save and improve efficiency remains high, as it is not on track to meet debt target set by the federal government.