Can Spain’s EUR 18 Billion Freight Strategy Overcome Border Barriers?

The political will is strong, and the investments are in place—yet Spain’s freight revival still runs into the same old walls. A new strategy aims high, but outdated infrastructure and stalled cooperation at borders may keep rail stuck in the slow lane.

Spain has committed to tripling its rail freight modal share from the current 4% to 10% by 2030, backed by an ambitious strategy involving billions of euros in infrastructure upgrades and international corridor development. But as stakeholders gathered at the UIP Wagon Keepers’ Summit in València, which RAILTARGET previously reported about, it became clear that persistent cross-border issues, technical barriers, and limited SME engagement threaten to stall progress toward that target.

The urgency is boosted by the European Green Deal and broader EU transport decarbonisation goals. Spain's current modal share lags far behind the EU average of 17%, prompting significant concern from policymakers, shippers, and industry leaders. The Spanish government and EU partners have pledged more than EUR 3 billion in funding to unlock key freight corridors, streamline gauge transitions, and develop inland logistics hubs. But many of these plans hinge on effective cooperation with France and Portugal, where political will and technical alignment remain inconsistent.

Infrastructure Investments and Inland Terminals Signal Strong Domestic Intent

Much of the growth strategy centres on the Mediterranean Corridor, where over EUR 18 billion has been committed to support freight and passenger services across Spain’s eastern axis. Major shippers such as Seat in Martorell, Ford in Almussafes, and PowerCo in Sagunt are set to benefit from expanded intermodal capacity, enhanced terminal access, and greater network connectivity by 2030.

Speaking at the summit, Johann Feindert, President of UIP, pointed out the link between reliability and competitiveness in modal shift: "Resilience and competitiveness are close friends… rail must be a go-to solution, not a problem." Nuria Lacaci of the Spanish Shippers Association insisted, "We need to show that all goods can go by train."

A key part of this approach is the construction and upgrade of several strategic inland terminals, many of which are expected to become operational by the end of the decade. These nodes will enable multimodal transfer between sea, rail, and road, enhancing last-mile delivery while reinforcing Spain’s logistics appeal for large manufacturers and exporters.

Political and Technical Hurdles Along Key International Corridors

Despite robust domestic momentum, cross-border connectivity remains a weak link in Spain’s freight network. The Perpignan–Montpellier bottleneck, a longstanding issue in Franco-Spanish rail relations, is unlikely to be resolved before 2040—raising serious concerns about the feasibility of seamless transit through one of the EU’s core corridors. Additionally, gauge incompatibility between Spain’s broad-gauge system and standard gauge in neighbouring countries adds complexity and cost to cross-border operations.

The HSL between Montpellier and Perpignan will open around 2040
byu/Willing-Donut6834 inhighspeedrail

The situation is similar on the Portugal–Spain axis, where dialogue around a Madrid–Lisboa high-speed link is ongoing. According to José Antonio Sebastián, Atlantic Corridor Commissioner, such a connection would allow freight access and fast passenger services using 1,435 mm gauge—but political alignment and funding remain open questions.

"Cross-border infrastructure is the EU's Achilles’ heel," noted several speakers during the UIP event, pointing to delays, divergent national strategies, and a lack of shared urgency as barriers to integration. Even with co-financing from the EU’s Connecting Europe Facility (CEF), execution timelines remain a concern.

Changing Perceptions Among SMEs Is Key to Unlocking Demand

A recurring theme during the summit was the need to engage small and medium-sized enterprises (SMEs) in rail logistics. While large manufacturers are already committed to modal shift strategies, many SMEs continue to rely on road freight, citing cost, complexity, and lack of awareness.

Xavier Jaso of Aecoc, a Spanish industry association, noted: "SMEs do not understand the complexity of rail freight." To address this, the government and rail industry are developing targeted outreach programmes, supported by digitalisation and simplified access tools, to help smaller firms integrate rail into their supply chains.

A related issue is the fragmented nature of service offerings and lack of unified communication between rail providers, making rail seem less accessible and flexible than road alternatives. Summit participants called for greater coordination between terminal operators, wagon keepers, and logistics platforms to create a seamless experience for new customers.

Sources: RAILTARGET; UIP; Railway Gazette International