Germany and Italy invest to shift cargo from road to rail

European governments are heavily investing in rail projects, with both Germany and Italy recently announcing substantial investment and subsidies aimed at shifting freight transportation from roads to railways.

The Ministry of Transport in Germany has given its approval for additional funding to address the rail network’s “decades of neglect”, as highlighted by the rail union EVG. Approximately €27 billion (equivalent to $29.5 billion) is being allocated towards grid maintenance and digitisation efforts.

However, the EVG argues that an even greater investment is required. Martin Burkert, the union chair, stated, “To make up for the entire investment backlog, at least another €18bn is still needed by 2027. In principle, there should be a new, permanent, reliable, and adequate financing of rail infrastructure as a political consensus of all parties.”

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