Numerous construction sites slow down ÖBB's freight traffic

Dozens of construction projects are disrupting freight rail traffic operated by Austria’s ÖBB, particularly affecting its logistics subsidiary Rail Cargo Group (RCG) and its key customer, Voestalpine. According to RCG board member Christoph Grasl, there are currently or will soon be 37 major infrastructure projects planned along European rail corridors, seven of which are located in Germany alone. These disruptions have forced RCG to reroute freight trains through complex detours across Europe. “It's almost impossible to operate international freight rail transport normally these days,” Grasl said. “You practically have to zigzag through Europe.” He criticized the lack of coordination among European countries, stating that each nation operates independently rather than collaboratively. The impact of these disruptions is especially felt in the daily delivery of 40,000 tons of raw materials to Voestalpine facilities in Linz and Donawitz, essential for maintaining continuous steel production. Approximately 3.1 million tons of this material annually arrives via the Slovenian port of Koper. However, the railway route from Koper to these destinations has become a patchwork of ongoing construction sites. Major works are underway on sections including Koper, Divača, Brezovica, Preseje, Borovnica, Verd, and between Ljubljana and Jesenice. The border station of Jesenice is also undergoing modernization until September 2027, further reducing available track capacity and complicating logistics for international freight trains. To maintain supply despite these challenges, RCG and Slovenia’s freight rail operator SŽ-Tovorni promet have intensified their coordination efforts. During the modernization of the Jesenice border station, interoperable locomotives capable of crossing borders are being used, cutting train stop times from about two hours to just 30 minutes. Alternative routes through the Spielfeld-Strass border station have been developed to handle longer closure periods. Hubert Zajicek, a member of the Voestalpine AG board, emphasized the importance of logistics in ensuring uninterrupted operations. “Logistics has become an absolute success factor,” he stated. “Most of our competitors had to reduce their production due to these issues, but we haven’t had to do that thanks to these reliable solutions.” Looking ahead, Zajicek noted that under the “greentec steel” program, Voestalpine plans to implement further steps toward carbon dioxide reduction in steel production starting in 2027. This transformation will alter supply chains and increase demands on the transportation of raw materials. “These changes will also affect our delivery chains and raise the requirements for transporting raw materials,” he added. Grasl estimates that the rerouting of freight trains will cost his company around €20 million this year, costs that cannot be passed on to customers. As a result, he is calling for compensation for these additional expenses incurred by rail companies. Beyond financial concerns, RCG is using the current situation to push for structural reforms. These include coordinated European infrastructure planning, standardized procedures, simplified border processes, and increased digitalization. “Running a train across Europe should be as simple as driving a truck,” Grasl insisted.