SBB Restructures Freight: Swiss Rail’s North-South Focus

Switzerland, October 26, 2024 – Swiss Federal Railways (SBB) is embarking on a significant restructuring of its combined transport (CT) operations, a strategic move aimed at enhancing cost-efficiency and modernizing freight transport across the nation. This initiative, primarily focused on the critical north-south freight corridor, will introduce new services under the “Suisse Cargo Logistics” concept. The restructuring involves strategic service adjustments, infrastructure optimization, and workforce realignment, all part of a larger plan to streamline operations and fortify SBB’s position in the competitive freight market. While the changes necessitate workforce reductions, the overarching strategy includes substantial investments in automation, digitalization, and modern rolling stock to create a more competitive and environmentally sustainable rail freight system for the future. This comprehensive overhaul reflects SBB’s commitment to adapting to evolving market demands and ensuring the long-term viability of rail freight in Switzerland.

Strategic Alignment: The North-South Corridor Focus

The cornerstone of SBB’s restructuring lies in optimizing its operations along the vital north-south freight corridor, a strategic decision reflecting the corridor’s importance for national and international trade. This focus is evidenced by the pilot project scheduled to commence in 2026, connecting Dietikon (ZH) and Stabio (TI). This pilot will serve as a testing ground for the innovative “Suisse Cargo Logistics” model, allowing SBB to fine-tune its operational strategies and assess the model’s effectiveness before wider implementation. Conversely, the east-west axis presents different challenges. The current lack of sufficient terminal infrastructure and express freight routes presents a constraint that needs to be addressed before the east-west corridor can be integrated into the new logistics framework. This strategic prioritization allows SBB to concentrate its resources, leverage existing infrastructure effectively, and ensure a phased implementation approach that minimizes disruptions and maximizes the chances of success.

Operational Adjustments: Service Optimization and Terminal Realignment

Central to SBB’s restructuring plan is a comprehensive review and adjustment of its operational footprint. This involves discontinuing unprofitable services and streamlining its terminal network. Specifically, eight SBB-operated combined transport terminals, identified as financially unsustainable, will be phased out. These terminals include Oensingen, Basel, Gossau, Widnau, Renens, St. Triphon, Cadenazzo, and Lugano. While these terminals will be closed, SBB is ensuring freight transfer to rail remains accessible via third-party terminals. This strategic realignment underscores SBB’s commitment to maintaining service accessibility, even as it optimizes its internal operational structures. By concentrating efforts on core profitable routes and relying on third-party facilities, SBB aims to enhance overall efficiency and reduce operational costs.

Workforce Transition: A Balanced Approach

The restructuring inevitably leads to workforce adjustments. SBB Cargo Switzerland will eliminate approximately 65 full-time positions by the end of 2025, primarily affecting locomotive drivers, shunting staff, and freight train inspectors. These reductions, which follow earlier cuts, reflect the ongoing effort to adapt to evolving operational needs and market conditions. SBB is actively engaging with its social partners to manage these reductions in accordance with collective labor agreements. The approach emphasizes mitigating the impact on affected employees, with a significant portion of the cuts anticipated to be absorbed through natural attrition, retirements, or redeployment within the broader SBB organization. The job reductions will be concentrated in German-speaking Switzerland and Ticino, with no impact on French-speaking regions, further underscoring the regionally sensitive nature of this restructuring.

Investing in the Future: Digitalization, Automation, and Sustainability

Despite the workforce adjustments, SBB is simultaneously investing significantly in the future of its freight operations. The company’s strategy incorporates investments in automation, digitalization, and new rolling stock. The aim is to make rail freight more competitive, improving its market position. These investments reflect SBB’s commitment to long-term sustainability and innovation in its freight division. Automation will streamline processes, reduce operational costs, and increase efficiency. Digitalization will enhance tracking and monitoring capabilities, improving the customer experience and optimizing resource allocation. The introduction of new rolling stock will improve capacity, reduce energy consumption, and make the service more attractive to customers. This multi-pronged approach, balancing immediate cost-cutting measures with forward-looking investments, is designed to ensure SBB Cargo’s long-term competitiveness and environmental responsibility.

Conclusion

In summary, SBB’s restructuring of its combined transport operations represents a pivotal step in modernizing freight transport and optimizing its operational efficiency. By focusing on the strategic north-south corridor and introducing the “Suisse Cargo Logistics” concept, SBB aims to streamline its services and adapt to evolving market demands. While the transition involves the difficult decision of workforce reductions, the company is committed to managing this process responsibly, with an emphasis on supporting its employees.
Moreover, SBB is actively investing in advanced technologies, including automation, digitalization, and new rolling stock, to enhance its competitiveness and environmental sustainability. The pilot project between Dietikon and Stabio will provide invaluable insights for future expansion, potentially extending the new model to the east-west corridor once the necessary infrastructure is in place. This forward-thinking approach, coupled with strategic service adjustments and terminal realignments, positions SBB to maintain its leadership in the Swiss freight industry. The overall strategy emphasizes balancing current operational challenges with long-term sustainability goals, ensuring the enduring relevance of rail freight in Switzerland’s transportation landscape, aiming to reduce freight transport costs by CHF 60 million annually by 2033.

Company Summary:

Swiss Federal Railways (SBB) is the principal railway operator in Switzerland. With a vast network and a strong focus on passenger and freight transport, SBB plays a crucial role in the country’s economy. SBB Cargo Switzerland is the freight division of SBB, handling various freight services, including combined transport, block trains, and single wagonload transport. The company employs around 2,250 people and is actively involved in modernizing its operations and reducing costs, while also investing in future-ready technologies to maintain a competitive edge in the market.