Spain’s eco-incentives all go to private operators

The Spanish Ministry of Transport granted 21.8 million euros to seven private rail freight operators. This is part of an initiative which saw Spain implementing rail freight eco-incentives instead of raising road tolls to boost the modal shift. The state-owned operator Renfe Mercancias got nothing.

This is the second call (out of three) for such funds, which will total 74.6 million euros. The amounts given to each company range from 37,000 to 11.1 million euros. The seven beneficiaries are Captrain España, Continental Rail, Medway, CSP Logitren, CEFSA, Low Cost Rail and Go Transport Servicios, the Spanish Ministry specified.

The funds will compensate the companies “for rail traffic carried out between 1 January and 31 December 2023”. The calculations of how much each company would get are based on various criteria, including wagon occupancy, type of locomotive used and the increase in traffic compared to the average of the previous two years. Renfe Mercancias, who was the largest beneficiary of the first call, did not receive any funds as it is struggling to increase volumes.

Spain’s eco-incentives

The first call was put out in December 2023, included 26 million euros which were divided among the same seven companies and was meant to cover expenses for the year 2022. The third and, so far, final call for eco-incentives will entail 23.5 million euros and “will be published soon” and will be based on traffic carried out during the 2024 calendar year.

The introduction of these subsidies was a consequence of a diatribe between Spain and the European Commission on how the country could boost the modal shift to rail, a prerogative to obtain funds from the Recovery and Resilience Facility. The Commission was asking for the introduction of road tolls to make rail freight more competitive. However, Spain did not like the proposal and countered it by suggesting the introduction of this eco-incentives scheme.