The subsidies from the EU to make up for the lack of track access charges paid can be considered a success. Although track access charges were waived or reduced in five countries since March 2020, infrastructure managers witnessed only a 1 per cent decrease in the total revenue they received from freight services in the year 2021.

The average track access charge paid per rail freight company in Europe even increased by 8 per cent. While nine countries 20 countries showed an annual decline of their freight track access charges, nine countries experienced an increase. This was concluded in the 11th Market Monitoring Report of the Independent Regulator’s Group (IRG).

State subsidies

This loss of revenue would have been much more substantial if it were not for the state subsidies. Since 7 October 2020, EU member states are permitted to provide state aid in the form of track access charges waivers or reductions. The measure came in place to support companies throughout the pandemic. However, it was extended in April last year until 31 December 2023, although the negative impact of the pandemic on the performance of rail is more or less negligible.

This decision was taken as flexibility in charging was starting to be considered a way of supporting rail freight in general. In the past two years, track access charges were waived or reduced in several countries, among them the Netherlands, Austria, Belgium, France, Italy, Luxembourg and Germany. Although it is not certain what happens after 2023, the year 2022 shows a positive trend.

Charges at an historic low

European infrastructure managers recorded decreases of the track access charges from railway undertakings on the one hand, but higher public subsidies on the other hand, leading to a relatively small decrease of their total revenue from TAC, the report reads. The 1 per cent decline for freight is even less significant when compared to the drop in revenue for passenger services: 5 per cent.

The track access charges paid by the freight industry went up by 0.2 billion euros from 2020 to 2021. However, it must be noted that compared to 2019, there was a significant drop in the charges paid, even when subsidies are included. Compared with the pre-corona year, charges in 2021 were more than 30 per cent lower.

Not back to normal, back in balance

The figures indicate that despite the subsidies, the situation is far from being back to pre-corona levels. The year 2020 was a corona year as well, and track access charges paid were at the lowest in five years, according to figures of the 10th Market Monitoring Report of the IRG.

What the new figures also indicate, is that the measures were implemented more successfully. In the beginning, the railway undertakings received support from their respective governments but not in all cases infrastructure managers were compensated. This compensation led in some countries to a drop in revenue for infrastructure managers.

It must also be noted that these figures represent and average, and the difference in approach among EU member states is large. For example, in Austria track access charges were fully waived and compensated for by the government. In other countries, like Greece or Norway, there are no subsidies in place and the track access charges increased considerably, leaving no support for railway undertakings.

Extension beyond 2023

There are voices advocating for a permanent support measure for rail freight in the form of subsidies. The Community of European Railway and Infrastructure Companies (CER) emphasises the absolute necessity of investment in infrastructure yesterday in the European Parliament, and it believes that that track access charges are key to creating a level playing field for all transport modes.

“Modal shift remains key to transport decarbonisation. Rail stands out with low externalities, being the most sustainable and energy-efficient transport mode. track access charges are key to creating a level playing field amongst modes and lowering them must come hand-in-hand with proper compensation to the infrastructure managers”, said CER Executive Director Alberto Mazzola.

In the last Delegated Regulation ((EU) 2022/312), the Commission was empowered to adopt delegated acts to prolong the reference period until 31 December 2023. It remains to be seen whether this possibility will indeed be utilised.