Rail operators in Spain can now apply for state aid amounting to 15,000 euros per diesel locomotive. The scheme is a response to the high fuel prices. Applications opened on Thursday 14 May and will continue until 29 May.
Spain introduced support schemes for the transport sector already in April, but initially left out rail freight. Madrid only set up a similar aid programme for rail freight after rail freight association AEFP appealed to the transport ministry.
“We cannot afford for its [rail freight] market share to continue declining if we want to reach a total ratio of 10% in four years and roughly match the European average, which stands at 17%”, transport minister Oscar Puente commented earlier on the state aid measure.
Temporary EU-sanctioned measure
In total, Spain has allocated 3.15 million euros to support diesel-powered rail freight operations. With 15,000 euros available per diesel locomotive, that equals 210 locomotives eligible for support.
Before Madrid can transfer the aid to the affected rail freight companies, the European Commission still has a say on the legality of the measure. The aid can only cover up to 70% of the added fuel costs (rather than the usual 50%) based on the temporary aid framework METSAF. It can also not exceed 50,000 euros.