Austria is getting a new government. Three political parties have agreed on a coalition agreement that will form the basis of Austria’s policies for the next four years. Importantly, rail freight has managed to claim a dedicated section in the government programme. Which policies will Austria be pursuing for the sector in the near future?
One of the challenges for the new government will be to make rail freight more appealing. In order to do that, it very much looks beyond Austria’s borders. For instance, the coalition plans to show “greater commitment” towards a single European railway area.
Austria will pursue deeper cooperation with Germany and Italy, European rail harmonisation, and an expansion of the “Brenner without Borders” project. The latter aims to reduce barriers on national borders for freight trains, making international rail freight faster and more competitive.

As part of the effort to achieve greater harmonisation in Europe, the new coalition wants to ensure that Europe introduces ETCS in a coordinated way across all member states. That should allow trains to operate with a sufficient number of available locomotives, the coalition agreement says. In line with those European ambitions, the new government also wants to boost domestic capacity by speeding up ETCS implementation in Austria.
What about the money?
Rail freight policy would not be complete without a plan on funding. The highlight of the new coalition agreement is perhaps a plan to exempt rail (both passenger and freight) from paying energy taxes. Energy prices have risen dramatically in recent years. A cancellation of energy taxes for rail should provide financial relief and increase the sector’s competitiveness.
Furthermore, the incoming government plans to maintain current federal subsidies for rail freight. Those should ensure that Austria keeps up with the desired modal shift to rail.
To add to that, the coalition agreement makes sure to specify that funding programmes should be long-term, attractive and unbureaucratic. By contrast, this is one of the main complaints of the Austrian rail freight sector’s German counterpart, which is displeased with the lack of long-term funding plans.

Inducing a modal shift
Additionally, there are tangible plans to promote a further modal shift from road to rail. Austria wants to increase inter-agency controls in road transport, implement strict measures against competition law violations, undeclared work, safety-related offences and wage and social dumping.
While being harsher on the road, the new government intends to guide businesses to switch from the road to rail. It introduces the idea of relocation coaches, which could provide technical and legal support.
On top of that, the coalition agreement mentions that Austria could provide “tailored logistics support and investments for the shipping industry as a pull factor in highly manipulated and shorter transport routes.”
– Acceleration of the expansion of the northern access route to the Brenner Pass.
– At the EU level, the weight limit for the use of craneable semi-trailers should generally be increased to 41 tonnes.
– Faster and more efficient rail freight transport through digitalisation, for example, digital coupling.
– Reduction of bureaucratic and legal hurdles in rail transport. The aim is to evaluate national regulations concerning technical specifications in individual states and to standardise them internationally.