Germany: Industry and transport veto cancellation of freight and passenger transport in favor of energy transport

The federal government’s plans to prioritize power transfers on the rail network for the next six months and cancel other freight and passenger services if necessary have drawn widespread criticism from industry and rail companies. This follows from the comments of trade associations on the draft of the planned decree on the energy security of transport, according to information from Handelsblatt.

The criticism is not only about the fact that the associations had only 24 hours to evaluate the plans. The Confederation of German Industries, for example, calls the lack of impact assessment “unacceptable”.

“With the rail network already partially congested, it is to be expected that the prioritization of rail transport will result in the cancellation of other rail transport,” the BDI clarifies. “This would lead to significant additional financial burdens for the businesses affected, as they would have to adjust their production processes or, if possible, switch to other modes of transport.”

Likewise, carriers could be exposed to “damage claims” if they have to cancel other orders. However, there is no provision for compensation from the public sector.

Public liability is essential, as is “compensation for lost profits”. Compensation should also be paid if traffic is diverted onto roads. “This must be rectified as a matter of urgency,” the BDI demands.

The state should bear the losses of the transporters

The industry association also points out that in the event of prioritization, “at least the operational capacity of the industry must be ensured”, “without unduly restricting other rail freight and passenger transport”. Companies should be informed at an early stage so that alternative transport can be arranged.

“The organization of these alternative transports is anyway difficult to implement in the context of the already heavily used road market, as well as the reduced possibilities of inland navigation,” the statement continued. “Furthermore, the possibility of a hardship regulation should be created to give priority to selected transports of the highest priority.” In order to create any capacity, the permissible gross weight of trucks should be able to rise to 44 tonnes “where the road infrastructure currently allows”.

The Federal Ministry of Economy and Technology had sent the regulation, which was drafted jointly with the Federal Ministry of Transport, to the associations on Thursday afternoon, giving them only 24 hours to evaluate it. In the face of energy shortages caused by the war in Ukraine and sanctions against Russia, the regulation is to come into force as soon as possible and be valid for six months, in order to supply refineries and power plants with alternative forms of energy, such as coal and transformers if needed.

This is done to ease the natural gas crisis. To this end, the network operator, DB Netz AG, will be able to terminate existing contracts with railway companies for transport slots without being responsible for the consequences.

The associations unanimously share the goal of securing the country’s energy supply. The Association of German Transport Companies, however, criticizes that the regulation “exceeds the original objective.

Energy transport not at the expense of passenger transport

For example, it does not name specific routes on which the special transports will run, but “almost the entire network of main railway lines”. In fact, 31 pages of the plan describe the “energy corridor network”.

The association also emphasizes that “large sections of the population depend on rail passenger transport, especially local transport”. Consequently, a “minimum base load” is necessary. The state must also compensate for any damages suffered by the companies.

This view is shared by the Federal Association of Local Rail Transport. Local transport is a service of general interest and absolutely necessary for workers. As such, the association calls for “equal priority to be given to peak hours between five and nine, as well as between three and seven, with energy transfers”.

The Mofair union, which represents local passenger transport companies, takes a similar line and, like the other unions, speaks of “vagueness” of the regulation and “opaque liability arrangements”. This is even more incomprehensible because a new energy supply strategy has been under discussion for five months.

Mofair criticizes, for example, the regulation that an energy transfer must be notified five days before the planned transfer. This deadline is too short “to enable a suitable replacement service for rail passenger transport to be organised”.

The plan leaves “too many questions unanswered”, he continues, and “leaves the rail sector alone with too many problems – none of which it is responsible for, nor can it solve – and will need significant improvement in a very short time “.