The German rail freight association Die Güterbahnen wants to reinstate the 350 million euro track access charge (TAC) subsidies. Earlier, the sector got a disappointing surprise when TAC subsidies were cut to 179 million euros annually. However, the German association also says that subsidies should ideally not be necessary.

The German government has decided to prolong TAC subsidies until at least 2028, but the exact amount of the future subsidies remains unclear. As track access charges will grow substantially, rail freight association Die Güterbahnen is hoping for subsidies to grow accordingly.

“For the upcoming 2025 federal budget, we are calling for track access charge subsidies to be raised to 350 million euros per year again, as was the case before 2024. However, if the price increases come as they are currently threatening, even 350 million euros would only be a drop in the ocean”, a spokesperson of Die Güterbahnen says.

A surprise subsidy cut

Track access charges in Germany stand to grow by 16 per cent in 2024 and may even grow by 50 per cent by 2026. It is a major financial burden on the German rail freight sector. To make matters worse, the sector got an unwelcome surprise as the German government decided to reduce TAC subsidies from 350 million euros to 179 million euros for 2024.

“The decision to cut the amount for 2024 to just 179 million euros came as a surprise to us and it was only raised by another 50 million euros under great pressure from us”, explains the spokesperson of Die Güterbahnen. For 2024, rail freight thus secured 229 million euros in TAC subsidies.

Ideally no TAC subsidies at all

Ideally, however, TAC subsidies would not be necessary at all, according to Die Güterbahnen. “Our basic principle is that the track access charge system should function in such a way that state subsidies are not necessary in the first place”, the association explains.

“We are committed to changing the track access charge system asap. It is not sustainable to keep an obviously poorly functioning system running and then to keep adjusting it with subsidies. However, as a reform of the track access charge system will take time, we see no alternative but to raise the track access charge subsidy to at least 350 million euros again in 2025.”