RAIL FREIGHT INDUSTRY CALLS FOR AFFORDABLE ENERGY
In response to the ongoing crisis in European energy markets, which has a significant impact on all sectors, the European railway sector has called on the European Commission and Member States to develop a strategy to protect the European Union’s modal shift objectives and to ensure uninterrupted affordable energy supply for rail transportation.
In a statement issued this week, the Community of European Railway and Infrastructure Companies (CER) and the European Rail Freight Association (ERFA), note that the EU Green Deal climate neutrality target foresees a stronger role for railways, as defined in the modal shift goals of the EU Sustainable and Smart Mobility Strategy. Whilst rail transport can contribute significantly to these goals, the sector’s modal share is at serious risk due to energy price developments. Energy amounts to approximately 10-20% of rail undertakings’ cost base and traction electricity prices in rail freight and passenger doubled for the period 2021 and 2022 with some countries even experiencing a tenfold price increase.
According to CER and ERFA, railway operators will not be able to maintain their ticket prices and shipping rates unless support measures, such as price caps for energy and state aids are introduced. The sector representatives therefore call on policy makers to adopt a multimodal approach in support measures and avoid competition distortion between modes of transport.
Source: CER