500 Billion Euros Demanded for Railway Expansion in Europe

The EU must "now quickly and boldly invest in efficient, modern infrastructure - especially in the rail sector": This is the appeal that Andreas Matthä, ÖBB CEO and President of the Community of European Railway and Infrastructure Companies (CER), and Christian Helmenstein, Chief Economist of the Federation of Austrian Industries (IV), intend to make to EU parliamentarians in Brussels, according to a press release on Tuesday. The financing requirement is estimated at around 500 billion euros by 2030 in the presented paper.

ÖBB & IV Demand More Money for Rail Expansion in Brussels

Investments in EU countries have generally stagnated since 2000. ÖBB and IV are presenting their joint paper on the strategic importance of investments in European rail infrastructure at the EU Parliament today. Matthä and Helmenstein emphasize how crucial the modernization and expansion of the trans-European transport networks (TEN-T) is for the economic future of the European Union. In the next multi-annual EU budget, which will be negotiated from autumn, rail projects and the implementation of TEN-T infrastructure must therefore be prioritized.

"Sustainable and, above all, predictable infrastructure financing is THE decisive lever for the rail sector," emphasizes rail chief Matthä, "More mobility means more opportunities in jobs and education and thus more freedom for everyone." Economist Helmenstein adds: "Investment decisions for rail infrastructure set growth impulses for future generations." In addition to growth spurts for industry and logistics, the two expect a significant reduction in CO2 through the shift from road to rail, as well as a strengthening of supply security through stable logistics chains.

Utilize More Private Capital for Infrastructure Projects

The two authors have explored various financing models from state to public-private partnerships in an essay. They demand that private capital in the EU be used more for infrastructure projects, as is already the case in Anglo-Saxon countries. An "enormous financial potential" could be unlocked if institutional investors (insurance companies, pension funds) were to invest more in infrastructure as an asset class.

According to the essay, all trans-European rail infrastructure projects with a significantly positive capital value should be implemented. This measures the profitability of an investment. There should not be a further increase in national debt. "Strong financial incentives" from the EU could encourage member states to focus their budgets on productivity-enhancing investments. This approach also sends a strong signal to private capital providers and institutional investors.

Austria as "Benchmark for Europe"

Furthermore, the approaches to planning, financing, and implementing rail projects in Austria, Germany, and Switzerland were compared. Austria's framework plan financing (currently 21.1 billion euros for the years 2024-2029) and the expansion of rail infrastructure are particularly seen as a "benchmark for Europe." According to ÖBB, the funds are flowing into major new construction projects such as the new southern route with the Semmering tunnel and Koralm route, as well as the maintenance of around 4,950 kilometers of domestic railway network.

The trans-European transport network (TEN-T) is a network of roads, railways, airports, and water infrastructure in the European Union. The goal of TEN-T is better-coordinated transport connections to create integrated and intermodal long-distance and high-speed routes. According to the EU, the trans-European networks (TEN) in the areas of transport, energy, and telecommunications should contribute to the growth of the internal market and more employment, and strengthen the economic, social, and territorial cohesion in the EU.

Union Vida Points to High Personnel Demand

Gerhard Tauchner, chairman of the railway sector in the union vida, welcomed the expansion appeal from Austria. "But no train runs without people. For the investments to bear fruit, there is an urgent need to make the railway sector more attractive for employees," he said towards ÖBB and IV in a statement on Tuesday afternoon. "For a long time now, there has been a very high demand for personnel in the railways, not only in Austria," Tauchner reminded. There is also a need for targeted and long-term investments in better working conditions. This includes the establishment of a tamper-proof digital system for recording working hours for train personnel, uniformly high training and safety standards across Europe, and better social infrastructure such as sufficient toilets and break rooms.

(APA/Red)

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