Rail Freight at a Crossroads: CER and ETF Call for Urgent EU Action to Boost Competitiveness

CER and ETF warn that regulatory gaps, funding shortfalls, and digitalization challenges threaten rail freight’s competitiveness in Europe. Urgent EU action is needed to support its future.

Despite its clear environmental and efficiency advantages, rail freight continues to struggle against road transport, which remains the dominant mode of freight movement across Europe. In the joint press release, CER and ETF emphasize that long-standing regulatory imbalances must be addressed to allow rail to compete fairly.

The organizations are calling for the full implementation of EU policies such as the Eurovignette Directive and the Fit for 55 package, which aim to ensure that transport pricing reflects its true environmental and societal costs through the "polluter pays" and "user pays" principles. According to CER and ETF, rail will continue to face an uphill battle in competing with road transport without stricter enforcement of these policies.

Investment Gaps Threaten Rail Freight Modernization

Sustained, long-term funding at both EU and Member State levels is essential to modernizing rail freight infrastructure and rolling stock. While some progress has been made, CER and ETF argue that current funding levels are insufficient to meet the increasing demand for rail freight services.

To address this, in their joint statement, the organizations urge the EU to increase financial support within the Multiannual Financial Framework (MFF) and allocate additional resources from Emissions Trading System (ETS) revenues to accelerate rail decarbonization. Without stable financial backing, rail freight risks falling behind in the transition to a more sustainable transport system.

Safeguarding Single Wagon Load and Combined Transport Services

Single Wagon Load (SWL) and Combined Transport (CT) services are essential components of a sustainable European freight network, yet both face significant financial and operational pressures. CER and ETF warn that without targeted state aid and policy adjustments, these services could decline, leading to higher external costs such as increased congestion, emissions, and accidents. Given their importance in reducing the EU’s transport sector emissions, the organizations call for new financial support mechanisms that acknowledge the societal benefits of these services.

Digital Transformation: The Key to Rail Freight Efficiency

Digitalization is another game-changer for the railway sector, and CER and ETF are urging faster deployment of key technologies to improve efficiency, safety, and competitiveness.

Among the most critical innovations are:

• European Rail Traffic Management System (ERTMS) – enabling seamless, interoperable rail operations across Europe.
• Digital Automatic Coupling (DAC) – improving capacity and logistics efficiency in freight transport.

However, successful implementation requires coordinated investment and workforce training. CER and ETF stress that digitalization efforts must go hand in hand with proper upskilling programs to prepare railway workers for the industry’s evolving technological landscape.

Cross-Border Cooperation and Capacity Management

The fragmentation of rail freight regulations across EU Member States remains a major challenge to the sector’s growth. To build a truly European rail freight network, CER and ETF call for:

• Stronger cross-border coordination in rail capacity management.
• Harmonization of technical and operational standards to simplify international freight movement.
• Clearer frameworks for competition and fair access to railway infrastructure.

A more unified and streamlined approach is needed to maximize rail freight’s contribution to the EU’s climate neutrality and market integration goals.

Industry Leaders Demand Action

Rail industry executives and union leaders are urging EU decision-makers to prioritize rail freight in policy reforms and funding allocations.

CER Executive Director Alberto Mazzola pointed out that the joint statement reinforces the objectives of CER’s Manifesto On Track for Europe. He stated, "Our agreement with ETF highlights not only the success of social dialogue but also our shared commitment to improving the conditions for rail freight to thrive."

ETF Secretary General Livia Spera spoke about the importance of workers in rail freight’s success. She said, "Rail freight’s success relies on its workers. Social dialogue is crucial to ensuring fair wages, secure jobs, and safe working conditions. Investment in infrastructure must go hand in hand with investment in the workforce—sustainable transport cannot be built on precarious employment or cost-cutting at workers’ expense."

EU Social Dialogue Railway President Matthias Rohrmann stressed that now is a decisive moment for rail freight. He stated, "To achieve the goals of the new EU Commission's ‘Mobility at the Heart of Europe’ strategy and meet climate targets, we must set the right course at both European and national levels—now!"

EU Social Dialogue Railway Vice President Giorgio Tuti reinforced the need for fair working conditions in the sector’s transformation. "To achieve a real modal shift, we need fair working conditions, secure jobs, and worker involvement in shaping the sector’s future. Without skilled, well-supported workers, investments in infrastructure and technology will not be enough to meet Europe’s climate and transport goals."

Source: CER and ETF Joint Statement