DG MOVE: “We Shouldn’t Give up on Block Trains”

Why It Matters

The EU’s freight strategy will shape logistics competitiveness, influencing supply‑chain costs and the continent’s ability to re‑industrialise amid geopolitical pressures.

Key Takeaways

• Rail freight holds 11% modal share, down while road at 77%.
• Passenger rail grew 5.8% last year, contrasting freight decline.
• Intermodal expands; block trains face pressure but remain strategic.
• EU pushes port‑rail links to boost freight modal share.
• DG MOVE to enact Capacity Regulation and revise ERA this summer.

Pulse Analysis

Rail freight’s dwindling 11% share reflects a confluence of geopolitical and macro‑economic shocks that have reshaped European logistics. The Russian invasion of Ukraine, coupled with soaring energy prices and a lingering economic slowdown, has eroded the competitiveness of long‑haul rail services. Meanwhile, road haulage continues to capture the lion’s share of freight, benefitting from flexible routing and established infrastructure. This divergence has prompted policymakers to reassess the role of rail in achieving climate goals and reducing congestion on Europe’s highways.

Intermodal transport—where containers shift seamlessly between ship, rail and truck—has emerged as the sector’s bright spot, driven by growing demand for efficient, low‑carbon supply chains. Yet Schmidt warned that block trains, which move homogeneous cargo on dedicated routes, should not be sidelined. Their capacity to move large volumes at lower unit costs remains vital, especially as Europe seeks to bring manufacturing back from Asia. Strengthening port‑rail connectivity is essential; without immediate rail transfer, cargo arriving by sea often defaults to road, perpetuating the modal imbalance.

Looking ahead, DG MOVE is accelerating regulatory reforms to revitalize rail freight. The upcoming Capacity Regulation aims to free up network slots for freight operators, while a revision of the European Railway Agency will streamline cross‑border certification and safety standards. These measures, combined with targeted investments in hinterland infrastructure, could restore rail’s appeal to shippers and support the EU’s broader industrial and climate objectives. Stakeholders should monitor the implementation timeline, as early adoption may confer a competitive edge in a market poised for transformation.