Europe’s Energy Shock Exposes Transport Weakness as UNIFE Calls for €100bn Rail Investment

Europe is heading into another energy shock, and the pattern is becoming hard to ignore. As costs rise and supply chains come under pressure again, the rail sector is warning that without stronger investment in electrified networks, the same vulnerabilities will keep coming back.

According to UNIFE Director General Enno Wiebe, the ongoing war in the Middle East has exposed once again how vulnerable Europe remains due to its reliance on aircraft and road transport. He argues that policymakers must now prioritise investment in electrified rail—both at EU level through the Connecting Europe Facility (CEF) and within Member States.

€100 Billion Call to Strengthen Europe’s Rail Backbone

Currently, the Connecting Europe Facility, part of the draft Multiannual Financial Framework for 2028–2034, has been allocated €51.5 billion, with only a portion dedicated to rail. However, UNIFE insists that this figure must be increased to at least €100 billion to deliver meaningful improvements across the European network.

These investments would support key priorities, including cross-border and Military Mobility rail projects, early-stage development of a future European high-speed rail network, and the deployment of critical technologies such as ERTMS® (European Rail Traffic Management System) and Digital Automatic Coupling (DAC). At the same time, the sector is calling for rail to be fully recognised as the backbone of European mobility.

Europe’s continued dependence on air and road transport leaves it exposed to repeated crisis cycles, forcing reactive emergency measures instead of long-term resilience planning. Disruptions across airlines, road haulage and maritime freight, combined with rising fossil fuel prices, are already feeding through supply chains and increasing costs for both businesses and households.

Expanding electrified rail, alongside urban metros and light rail, offers a way to reduce this dependency, particularly as energy can be sourced from renewables and nuclear power. Rail already accounts for just 0.3% of Europe’s transport-related greenhouse gas emissions, making it the most environmentally sustainable mode of transport. Despite this, its freight market share has declined from 19.1% in 2012 to 16.4% in 2023, according to Eurostat.

The current crisis also presents an opportunity to accelerate passenger rail growth, which continues to gain popularity and market share across the continent.

"Few Lessons Learned": Wiebe Warns Against Repeating Past Mistakes

"Few lessons have been learned from the energy shocks of the 1970s. As policymakers now need to respond with emergency measures, we could have reduced the economic and social damage of these incoming shocks by investing in rail over the generations," said Wiebe.

"With public demand for better rail infrastructure and an overreliance on air and road freight, an investment of at least €100 billion in the next EU Budget for CEF will help build future resilience and reduce the impact of future energy shocks."

"To deliver these much-needed projects, the European Rail Supply Industry needs more than just the certainty of long-term investment; it needs measures to ensure that it can remain competitive, such as Public Procurement reform and easing regulatory burdens."

Source: UNIFE