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VDV: Removing the Brake Pads of the Mobility Transition on Rail

Network expansion, energy prices, and staff shortages are the bottlenecks for shifting freight transport to rail. The Association of German Transport Companies is holding politicians accountable.

Too few staff: The shortage of personnel is also an issue in rail freight transport - and the urgency is increasing. (Symbol image: Pixabay)
Too few staff: The shortage of personnel is also an issue in rail freight transport - and the urgency is increasing. (Symbol image: Pixabay)
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Johannes Reichel
von Nadine Bradl

Rail freight transport has, on balance, come through the Corona crisis relatively unharmed. The industry currently has better numbers than before the pandemic. This was noted by Oliver Wolff, the CEO of the Association of German Transport Companies VDV, in Berlin. Nevertheless, these figures are still insufficient for the necessary growth and the achievement of the 2030 climate protection goals, Wolff further remarked.

"There are numerous adjustment screws in network expansion, energy price development, and the shortage of skilled workers that we need to work on to achieve a significantly improved development - both the industry itself and politics are called upon here," appealed the VDV CEO.

In addition, there are external factors, such as in infrastructure expansion, rising construction and material costs, that the industry must accept.

"Our report on rail freight transport has objectively demonstrated that a market share of 25 percent by 2030 is very ambitious but also realistically achievable. Politics and industry must immediately create the necessary prerequisites to achieve the climate protection goals," said Wolff.

Capacity constraints due to construction activities are annoying but necessary

However, with the current and future growth wanted in rail freight transport, the concern of freight railways about performance is also increasing. Especially the increasing construction activities in the German rail network significantly impact the punctuality and reliability of transport under certain circumstances.

From the VDV's perspective, a necessary evil: "The increased construction sites are first and foremost an excellent sign that the country is progressing, that we are modernizing, expanding, and digitizing routes. Nevertheless, we need more stable networks even during construction phases, even if this increases financial expenditure. Because even during construction activities, rail must be a reliable carrier. And that is only possible if, despite construction measures, tracks are used and schedules are maintained," said Wolff.

This requires insight and coordination on all sides. A structural change in construction projects is needed in cooperation with politics. According to the VDV, the performance and financing agreement is not customer-friendly enough. Politics need to revise this so that not only the most economical offer wins but also the most macro-economically beneficial one, ensuring as much as possible is transported by rail at any time. Otherwise, the politically and industry-wide targeted growth of market share in rail freight transport to 25 percent could be missed, said the industry association. Operational quality had recently significantly decreased due to construction activities, extreme weather conditions, and other reasons.

"If the network is not sufficiently available, the effort for capital-intensive transport means, personnel, network usage, and energy increases," emphasized the VDV CEO.

Price increases for diesel and electricity

Electricity and diesel prices are a significant factor in the calculation of passenger and freight transport on the railways.

"This development will not affect everyone equally, but we must be very concerned about individual railway companies in all areas. Those who discuss this under the keyword market cleansing should be told that it is precisely these companies and their capacities that we will sorely miss in achieving the goals of the traffic transition," said Wolff.

The VDV advises an appropriate reaction from the federal government to alleviate the tense situation for the industry somewhat. For example, it should be considered continuing the track price subsidy for long-distance rail transport - currently around 50 percent discount as 'Corona aid' - at a moderate level also for 2022. This would be practically applied climate protection. The deletion of the EEG levy, which the federal government has already promised for all consumers and companies, could also contribute to preventing worse in the current situation. According to the industry association, this applies not only to rail but also to public transport.

 

Staff Shortages Must Not Become a Bottleneck in the Mobility Transition

“While Omicron-related absenteeism rates in the industry due to illness or quarantine are not exceptionally high, structural shortages in skilled labor are becoming increasingly apparent in both freight and passenger rail services, across local and long-distance operations,” explains Wolff.

This is also confirmed by a special evaluation of the VDV industry survey on personnel from November 2021 with around 30 rail transport companies: “The shortage of staff and skilled workers is becoming increasingly severe. We are looking for personnel in all areas, especially in operations, but also in the commercial-technical sector. We are recruiting engineers, IT specialists, and would like to train and hire many more,” says Wolff.

According to data from the Federal Employment Agency (2020), there are only 54 job seekers with the necessary qualifications for every 100 reported job openings for train drivers. This occupation has thus been on the Federal Employment Agency's list of so-called 'shortage occupations' in Germany for years. The situation is somewhat better in other areas, but even here, the available applicants are not sufficient to fill both the vacant and newly created positions. This remains true despite the fact that, even during the crisis, more staff was hired in the freight rail sector in the last two years than in the previous year.

More Hiring in 2020 and 2021 Than in 2019

“Transport companies cannot afford to forego hiring staff even during the pandemic. On the contrary, we are desperately searching,” says Wolff.

The need for action arises partly from demographic changes – according to companies, around 30 percent of employees will need to be replaced due to age by 2030. Additionally, the necessary expansion of services to meet climate protection goals will require significant additional hiring: companies forecast an additional need of about 23 percent by 2030. Over 72 percent of companies hired more staff in 2021 than the year before.

“Compared to the previous year's survey, where the demand for skilled workers had already increased, 62 percent of rail companies now report that the demand has increased once again. Here, the VDV employer initiative supports companies, for example, with its own industry career portal currently listing 8,328 open positions,” concluded Wolff.

Translated automatically from German.
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