SBB Announces Next Steps to Cut Wagonload Costs

Why It Matters

The overhaul is essential for SBB to turn a loss‑making segment profitable, supporting Switzerland’s climate goals and reducing road congestion. Success could serve as a template for other rail operators facing similar cost pressures.

Key Takeaways

• SBB will close 50 of 280 freight terminals for wagonload traffic.
• Around 200 drivers and shunters will be redeployed to busier sites.
• New model aims to keep 98% of freight volume while cutting costs.
• Expected savings target profitability by 2033, offsetting $156 million loss.
• Eliminating wagonload could prevent up to one million extra lorry trips annually.

Pulse Analysis

The Swiss Federal Railways (SBB) is confronting a persistent deficit in its single‑wagonload freight segment, which posted a loss of 126 million Swiss francs last year – roughly $156 million. The federal government has set a 2033 deadline for all rail freight to become profitable, a target that forces SBB to overhaul a business line that traditionally lags behind bulk train‑load services. By reshaping its cost structure, SBB hopes to align with national climate and supply‑chain objectives while preserving the strategic relevance of rail in Switzerland’s logistics network.

To achieve the needed efficiency, SBB will implement a new production model that redeploys about 200 locomotive drivers and shunting staff from 11 low‑traffic locations and shuts roughly 50 of its 280 freight terminals to wagonload traffic. The closures will not affect train‑load services, and the company claims it can still move 98 % of the current freight volume by improving train occupancy. The move also averts an estimated one million additional lorry journeys each year, reinforcing rail’s environmental advantage.

The restructuring signals a broader shift in European rail freight, where operators balance labor costs, terminal footprints, and the push for greener transport. While SBB anticipates hiring 300 new freight employees to replace retirees, the emphasis on flexibility suggests future adjustments as customer demand evolves. If successful, the cost cuts could set a benchmark for other state‑owned railways seeking profitability without sacrificing service levels, and they underscore the growing importance of rail as a low‑carbon alternative to road haulage.