This is how Switzerland will fund deployment of Digital Automatic Coupling

Switzerland is one of the countries in the forefront when it comes to the implementaion of Digital Automatic Coupling (DAC). In a recently published document, the Swiss Federal Council specifies how funds will be allocated for this project, for which 180 million francs (192,6 million euros) have been assigned.
When it comes to rail wagons, the funds will be distributed according to their age. For wagons built after 2010 and registered before 1 January 2026 there will be 10,000 francs (10,700 euros) per item. For wagons manufactured between 1995 and 2009, the Swiss Federal Council will make available 5,000 francs (5,350 euros) per unit. The situation is slightly different for locomotives. If they are deployed for at least five years after being equipped with DAC, the subsidy will cover 75,000 francs (80,200 euros) per locomotive.

In total, Switzerland plans to equip around 15,000 wagons and 520 locomotives with DAC. The financial support included in the new revision should cover between 30 and 40% of the total costs. The funds will be managed by an organisation that needs to be created specifically for this purpose, the Swiss Federal Council added. Companies interested in applying for the subsidy will have to provide the Swiss Federal Office of Transport (FOT) with a list of the vehicles and their year of manufacture.

The revision of the law of transport

With this revision, Switzerland did not only set out specifications for the DAC implementation, but also laid out guidelines for subsidies in the context of transshipment terminals. These concern facilities within and outside the Swiss borders, which will be eligible for the scheme if their tracks handle at least 720 full wagons or if they can handle 5,000 TEUs every year.

Projects for the renewal of existing terminals can get up to 40% of the costs covered through this scheme, while it goes up to 50% for the construction of new transshipment facilities and 80% for terminals considered of national importance. It needs to be mentioned that the FOT, charged with distributing the funds, can claim them back if the beneficiary facilities do not reach a certain volume threshold within five years.

Moreover, Switzerland will allocate some funds to subsidise combined transport operations. Operators will be able to get 40 francs (roughly 43 euros) for every wagon used in combined transport provided that each track handles at least 720 units for a maximum of 8,000. In case of new terminals, the threshold of 720 wagons per track will only enter into force after six years from the opening.

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