Switzerland tries to keep goods on the railway. 515 million euros for transport through the Alps
August 19, 2026
Switzerland wants to extend financial support for rail freight transport through the Alps until 2035 after the railway's share fell for the fourth consecutive year. BLS Cargo supports the measure and warns that works, line closures and rising costs are causing significant losses for rail operators.
The Swiss policy of shifting freight from road to rail is facing an increasingly visible setback. The Swiss Federal Council proposes to extend financial support for transalpine rail transport until 2035, with the total amount planned for the period 2027–2035 being equivalent to approximately 515 million euros .
The measure comes after several years in which railways lost ground to road transport.
In 2025, trains had a 68.6% share of freight transport crossing the Swiss Alps , marking the fourth consecutive year in which rail transport lost market share to road.
Swiss authorities estimate that a reversal of this trend is not expected before the end of the current decade.
Germany, one of the main problems for freight trains
Among the main causes indicated by the Swiss authorities are the insufficient quality and reliability of rail freight transport on the European north-south corridors , in particular due to works and traffic disruptions in Germany .
Swiss rail freight operator BLS Cargo describes the situation in even harsher terms.
The company points to construction sites, line closures announced shortly in advance, and total disruptions lasting several weeks as factors that generate a high number of cancellations and delays.
According to BLS Cargo, these disruptions have become unacceptable for customers and lead to both revenue losses and operational inefficiencies and additional costs for rail operators .
Added to this are the increase in energy prices and tariffs for the use of railway infrastructure in several countries.
BLS Cargo, at a loss in 2025
BLS Cargo says these issues have had a direct impact on its financial results. The operator recorded a significant loss in 2025 and expects a similar situation this year.
The company's traffic was further affected by the termination, at the end of 2025, of the RAlpin service .
The product represented over 3,000 trains for BLS Cargo in 2025 , and its disappearance caused a significant decrease in the volumes transported by the company in 2026.
The outlook for the coming years remains challenging. BLS Cargo points to upcoming partial and total closures on the Rhine Valley railway in Germany , as well as long-term disruptions expected on the Simplon axis.
Approximately 515 million euros by 2035
To prevent the acceleration of the transfer of goods to the road, the Federal Council proposes to amend the legislation on the transfer of freight transport.
The operating contributions for unaccompanied combined transport , currently scheduled to expire in 2030, would be extended until 2035 .
At the same time, the authorities want to abandon the progressive reduction of subsidies provided for in the current legislation by 2029. From 2030, the amount of support would be gradually reduced.
For the period 2027–2030 , the Confederation would allocate annually the equivalent of approximately 58–63 million euros , and subsequently the funding would reach, on average, approximately 53 million euros per year .
In total, the planned operating support for the period 2027–2035 amounts to approximately EUR 515 million . The funds will come from taxes on petroleum products.
BLS Cargo wants the money to reach the railway operators in full
BLS Cargo welcomes both the extension of funding until 2035 and the decision to maintain higher contributions until the end of this decade.
However, the company demands that the additional funds provided for the period 2027–2030 reach the freight rail operators who actually bear the additional costs .
BLS Cargo's preferred solution would be direct payment of compensation by the Swiss Federal Office of Transport (BAV) to the railway companies.
If financing continues to be provided through combined transport operators, BLS Cargo requests that the full transfer of amounts to railway undertakings be made mandatory by law or regulation.
The company believes that a mechanism based exclusively on the voluntary transfer of these funds would not guarantee that the support reaches the operators who actually bear the costs.
Railways lose ground after years of modal shift policy
The development is all the more important for Switzerland as moving heavy freight from road to rail has long been one of the country's central policies in the field of transalpine transport.
However, the data for 2025 and, according to BLS Cargo, those for the first half of 2026 confirm the continued transfer of traffic in the opposite direction, from rail to road .
Under these conditions, the operator believes that reducing financial support would put even greater pressure on the sector and supports the extension of the financing mechanism until 2035.