European Rail Freight Sector Faces Crisis as Operators Issue Urgent Calls for Policy Support

Europe's rail freight industry confronts mounting existential pressures as operators sound alarm over deteriorating competitiveness, with the sector navigating an increasingly fragile situation whilst EU institutions face criticism for insufficient response to the unfolding crisis.

The past weeks have witnessed escalating distress signals from numerous European rail freight players highlighting the sector's precarious position. Industry representatives warn the crisis approaches breaking point as operators contend with structural disadvantages versus road transport, inadequate infrastructure investment and regulatory burdens that undermine commercial viability.

The challenges come despite ambitious EU sustainability targets. The bloc's Sustainable and Smart Mobility Strategy aims to increase rail freight traffic 50 per cent by 2030 and double volumes by 2050. Yet achieving these objectives requires rail transport becoming more affordable, reliable and accessible—precisely the areas where operators currently struggle most.

Rail freight faces fundamental competitive handicaps. Whilst road haulage benefits from extensive publicly funded motorway networks and limited operational restrictions, rail operators must pay infrastructure access charges whilst navigating complex cross-border capacity allocation procedures managed by national infrastructure managers operating under differing frameworks and timetables.

The scheduling of international rail services proves particularly challenging. Each infrastructure manager allocates capacity based on national frameworks, creating coordination difficulties for cross-border freight operations that form the backbone of European supply chains. Capacity planning occurs annually, limiting flexibility for operators seeking to respond rapidly to market demands.

Industry observers note the disconnect between political rhetoric supporting modal shift from road to rail and practical policy measures. Rail freight operators contend with rising energy costs, labour shortages and aging infrastructure whilst receiving comparatively modest public support versus the indirect subsidies road transport enjoys through free infrastructure access.

The European Network of Infrastructure Managers plays a coordination role, yet national infrastructure managers retain primary responsibility for capacity allocation, reflecting member states' determination to maintain control over domestic rail policy despite cross-border traffic growth.

Without substantive policy intervention addressing structural competitiveness gaps, operators warn Europe risks undermining its own decarbonisation ambitions whilst sacrificing a strategic industrial sector.