Rail operators in Romania are losing a 33% intermodal discount for infrastructure charges this December. This is the result of objections from the country’s rail regulator CNSDF, which found major legal shortcomings in the scheme.
Losing the intermodal discount could be considered a substantial setback for the rail freight industry in Romania. Intermodal is widely seen as the main growth driver in Europe. Since 2018, intermodal operators in Romania have had the opportunity to get a 33% discount on their operations from the national rail company Romanian Railways (CFR).
The support scheme is not an ordinary subsidy, as seen in countries like Germany. Rather, CFR supports intermodal operations through foregone revenue by simply charging less. The discount funds do not come from the state budget.
Problems arose with the eligibility conditions for the discount scheme. CNSDF, as well as the rail freight association OPSFPR, believed that the conditions effectively led to discrimination between operators.
Second, eligibility for the discount depended on operators’ total traffic in train-kilometres. As long as their intermodal segments performed better (compared to a previous period) than the overall performance of the company, they would remain eligible. An example: an operator whose intermodal traffic shrinks by 10% and whose total traffic shrinks by 5% would not be eligible, because intermodal traffic performed worse compared to total traffic.
Yet, an operator whose intermodal traffic shrinks by 40%, but whose total traffic plummets by 50% would still be eligible, because intermodal performed better than overall traffic. CNSDF concluded that CFR’s discount scheme did “ not reward or reflect exclusively performance in the intermodal segment”, since it was also dependent on other factors.
| Hypothetical case | Intermodal traffic change | Total traffic change | Eligible? |
|---|---|---|---|
| 1 | −10% | −5% | No |
| 2 | −10% | −20% | Yes |
| 3 | −3% | −2% | No |
| 4 | −40% | −50% | Yes |
Lastly, the discount rules do not say how an operator that skipped a year is treated when it returns. CNSDF says that an operator found ineligible in one year could reapply for the discount later, creating different assessment conditions for some operators compared to others.
It is unclear if the discount will be reinstated in a different format. The rail regulator required a revision of the scheme, but did not order a blanket abolition of all track access charge discounts.
It also remains to be seen if cancellation of the discount will lead to a drop in intermodal performance. There has not been a “direct correlation” between the discount and the growth in intermodal traffic, according to CNSDF. In total, CFR granted the equivalent of around €10 million in discounts since 2018.
The Romanian rail freight association OPSFPR tells RailFreight.com that it continues to pursue support measures for rail freight, despite the cancellation of the intermodal discount. “Intermodal terminals should take an active role in this work through the organisation. Their participation would enable them to stay informed from an early stage, help shape proposals and advance their interests alongside rail freight operators.”