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Germany to Continue Rail Freight Subsidies Until 2028 Despite Future TAC Increases

Germany to Continue Rail Freight Subsidies Until 2028 Despite Future TAC Increases
photo: Deutsche Bahn / Public domain/DB Cargo
04 / 07 / 2024

The German transport ministry has announced the extension of track access charge (TAC) subsidies for rail freight until November 2028.

This decision comes as TACs in Germany are set to increase by 16.2 percent later this year and into 2025, with potential further increases by 50 percent by 2026. Despite these projected hikes, it remains uncertain how large the future subsidies will be, as they are still subject to budget negotiations.

“The federal government is keeping a close eye on the development of track access charges and their impact on rail freight transport,” stated Michael Theurer, Parliamentary State Secretary at the Federal Ministry for Digital and Transport. He added, “Despite limited financial resources, we are therefore continuing to work towards adequate track access charge funding in this segment and are making around 229 million euros available for 2024.” The subsidies aim to support the rail freight sector in maintaining competitiveness amid rising TACs, with EUR 229 million secured for next year alone.

The extension of TAC subsidies is seen as a crucial transitional measure until the rail freight sector can achieve greater competitiveness through enhanced digitalization and automation. The German transport ministry has confirmed that while the exact amount of subsidies from 2025 onwards will be determined following ongoing budget discussions, the government is committed to ensuring adequate funding to support the industry.


Source: Trans.Info; DVZ