Amid the chaos currently surrounding single wagonload (SWL) in Switzerland, one thing will not change: SBB Cargo will continue to be the sole provider of these services, at least until 2029. The country will provide around 260 million francs (278 million euros) over the next four years for compensation as well as investments.
Switzerland had launched a bidding process to sign new service agreements last spring “aimed at concluding one or more service agreements for future SWL operations and securing the related financial support from the Confederation”. However, only SBB Cargo presented an offer, thus winning the bid and remaining the sole provider of these services in Switzerland.
Financial allocation
The agreement also highlights how funds will be deployed to support SWL over the next four years. The 260 million francs will be spread roughly equally throughout the period, with a little over 64 million francs (68,5 million euros) each. The main difference is that five million francs of the funds for 2026 will be used for investments, while all the rest will be allocated for compensation.
What changes?
The new agreement brings in a few requirements for the state-owned operator. “For example, with the new funds, cross-subsidies will no longer be possible”, the FOT specified. In other words, the company will have to reinvest its (possible) profits in the development and modernisation of the SWL segment.
Moreover, SBB Cargo will have to be more transparent. They will have to report quarterly to the FOT, making key parameters on transport performance public on the Office’s website. A semi-annual report will be also published on the development of the SWL offering portfolio. Finally, SBB Cargo will have to keep a detailed financial account on the segment which will be presented yearly to the FOT.
SWL in Switzerland
Despite winning this concession, the situation regarding SWL at SBB Cargo seems to be a rollercoaster ride. On the positive side, the company said it renewed various contracts with shippers (including Migros, Vigier, and Stahl Gerlafingen), some up to ten years. “This means that over 95% of customers will continue to rely on SWL in the long term”, it said. On the other hand, however, the company is planning to close three terminals in Chiasso, Brig and Buchs and firing 40 people. Five more might follow the same fate, costing the job to at least 25 more workers.