On 23 May, ERFA held an event on the need to find a better balance between extensive works on the European railway network and ensuring a sufficient quantity and quality of capacity remains available for rail freight. It is a critical topic as without upgrading the network, it will not be possible to double rail freight by 2050, whereas without a focus on short-term capacity management, it will not be possible to increase rail freight volumes by 50% by 2030.

The European Union has established a target of growing rail freight by 50% by 2030 and doubling volumes by 2050. To double volumes by 2050, it will be essential that a long-term and ambitious infrastructure development strategy is agreed upon during the TEN-T trialogue negotiations between the European Commission, European Parliament and European Council. ERFA, representing private and independent rail freight companies, has established a position outlining the key deliverables which should be secured.

As of 2021, challengers to national incumbents now account for a majority of the European rail freight market, with a market share of 51%. In 2010, the market share of challengers was still at 25% and incumbents were dominating the market. This achievement reflects the success of opening national rail freight markets to competition and highlights the need to ensure European legislation is adapted to meet the needs of new entrants.

On 29 March, leading European rail freight associations, rail freight CEOs and the chair of the European Parliament's Transport and Tourism Committee, Ms. Karima Delli, endorsed a joint declaration on the need to accelerate modal shift in the transportation of freight. The joint declaration predates a 2020 joint declaration which identified the need to act to deliver modal shift. Leading voices in rail freight are now calling for ambition from European policy makers over the coming months.

At European and national levels, discussions are ongoing on the development of financing systems to support single wagon traffic. ERFA recognizes that financial support for single wagon traffic can play an important role in achieving the modal shift targets set out in the European Sustainable and Smart Mobility Strategy, but such aid must focus on last mile services and not distort competition with other rail freight services.

The past 12 months have proven to be extremely challenging for the rail freight sector. Rail freight has been exposed to unprecedented increases in energy costs and been confronted with a difficult situation due to ongoing infrastructure works throughout the European network. Some successes have been achieved, but more has to be done to put rail freight on the right path to achieve the modal shift objectives set out in the European Sustainable and Smart Mobility Strategy.

On 01 December, ERFA, along with other European railway associations, issued a joint statement on the need for the EU Council to adopt an agreement on a joint approach regarding the TEN-T Regulation which is in line with the ambitions laid out by the European Commission?s proposal. For rail freight to be able to achieve the targets agreed upon in the European Sustainable and Smart Mobility Strategy, it is important that infrastructure is developed in a timely manner and which will facilitate increased rail freight volumes.

For rail freight to be able to meet the objectives set out in the European Sustainable and Smart Mobility Strategy, it is essential that railway capacity management moves towards a system that is European, digital, flexible and secure. Rail freight undertakings must be able to book capacity which is in line with their business models and allows for flexibility to meet customer needs. Along with FTE (Forum Train Europe) and ALLRAIL, ERFA has agreed a common vision on how this can be achieved.

The functioning of European supply chains is being put at risk by increasing energy prices. There is a significant risk of a collapse of supply chains which rely heavily on rail freight for transportation due to unsustainable energy and transportation costs. The informal meeting of the Council of European Transport Ministers of 20-21 October should agree that Regulation (EU) 2022/1854 on an emergency intervention to address high energy prices will be applied to traction electricity used by freight trains.

The revision of the Train Drivers Directive will play an important role in ensuring rail freight can achieve its modal shift objectives. With the closing of the public consultation on the revision of the Directive, it is important that the European Commission adopts an approach which ensures the train driver certification process ensures a high level of safety of operations whilst also introducing greater flexibility and ensuring that language requirements do not become a bottleneck to the good functioning of the European rail freight market.

The impact of dramatically increasing energy prices in the rail freight market has the potential to not only reverse modal shift, but also to fundamentally change the composition of the European rail freight sector. Many smaller and medium sized railway undertakings are at risk of leaving markets or even bankruptcy depending on the evolution of energy charging policies. It is essential that measures are taken which support rail freight and ensure 20 years of market opening is not undermined.

On 06 July, the European Commission proposed a Council Regulation introducing rules to simplify procedures for State Aid to green transport. The adoption of the Regulation will enable the Commission to declare certain categories of State Aid to greener modes of transport compatible with the internal market and allow for the European Commission to introduce adopt a Block Exemption Regulation for certain aids. ERFA believes this will have a positive impact on modal shift, but raises the importance of the upcoming revision of the State Aid Guidelines for Railway Undertakings.