There is also a staggering difference between SBB Cargo’s domestic and international services. In Switzerland, the operator’s volumes have been declining since 2019 and are now below five billion net tonnes/kilometre for the third year in a row, with a 2.9% decrease between 2024 and 2025. SBB Cargo International has also seen its volumes decline since 2021, with a 4.6% drop between 2024 and 2025, but it is steadily above 10 billion net tonnes/kilometre.

‘Only block trains cover their own costs’

Out of the three offer types in SBB Cargo’s portfolio – combined transport, single wagonload and block trains, “only the latter can cover its own costs”, SBB underlined. The combined transport (CT) segment begun its transformation in May, while SWL will be re-organised this year. The transformation of CT has not been the smoothest, as it brought the closure of eight terminals across Switzerland with the consequent loss of dozens of jobs.

While waiting for the renovation of the SWL business, 2025 brought some positive news. The Swiss government approved a four-year scheme for financial support to operators offering SWL services in Switzerland both with compensation and investments. In total, 260 million CHF (287 million euros) will be deployed until 2029 for this initiative and, since SBB Cargo is the sole provider of this services, it will get all of them.

For SBB Cargo, the deal creates financial and operational flexibility. “We are pleased to partner with Nordic Re-Finance under a full‑service leasing structure for our international transport solutions. As lessee and operator, we trust that Nordic Re‑Finance will ensure the continued availability and reliable operation of the locomotives”, commented SBB Cargo International’s Head of Strategic Procurement, Tobias Gras.

Traxx AC1 locomotives are well-established in international European freight operations, according to Nordic Re-Finance, and are known for their reliability and operational flexibility.

Partnership with Infranity

Earlier, in December 2025, Nordic Re-Finance acquired 15 electric locomotives from DB Cargo Scandinavia. The SBB Cargo transaction marks its second fleet acquisition since March 2025, when French investment company Infranity took a majority share in the locomotive leasing company.

Financial allocation

The agreement also highlights how funds will be deployed to support SWL over the next four years. The 260 million francs will be spread roughly equally throughout the period, with a little over 64 million francs (68,5 million euros) each. The main difference is that five million francs of the funds for 2026 will be used for investments, while all the rest will be allocated for compensation.

What changes?

The new agreement brings in a few requirements for the state-owned operator. “For example, with the new funds, cross-subsidies will no longer be possible”, the FOT specified. In other words, the company will have to reinvest its (possible) profits in the development and modernisation of the SWL segment.

Moreover, SBB Cargo will have to be more transparent. They will have to report quarterly to the FOT, making key parameters on transport performance public on the Office’s website. A semi-annual report will be also published on the development of the SWL offering portfolio. Finally, SBB Cargo will have to keep a detailed financial account on the segment which will be presented yearly to the FOT.

SWL in Switzerland

Despite winning this concession, the situation regarding SWL at SBB Cargo seems to be a rollercoaster ride. On the positive side, the company said it renewed various contracts with shippers (including Migros, Vigier, and Stahl Gerlafingen), some up to ten years. “This means that over 95% of customers will continue to rely on SWL in the long term”, it said. On the other hand, however, the company is planning to close three terminals in Chiasso, Brig and Buchs and firing 40 people. Five more might follow the same fate, costing the job to at least 25 more workers.

In order to do that, changes need to be made, also in terms of pricing. When it comes to SWL services in Switzerland, rates are rising rapidly, says shippers’ assocation VAP. That is making the single wagonload business uncompetitive with the road, and will push shippers away from rail, the association argues.

The “horrendous price increases” are a thorn in the side of the association, because a new federal law stipulates that the burden should be carried more evenly between the shippers, SBB and the federal government, VAP says.

Moderate price increases

The law in question, the Goods Transport Act, aims to make single wagonload transport self-sustaining by improving operational efficiency at SBB, raising prices for shippers and with hundreds of millions in investments by the Swiss federal government for the coming eight years.

It was a fair arrangement, and the shippers were ready to take on “moderate price increases”, says VAP. However, the association adds that “the reduction of SBB Cargo’s deficit is happening almost exclusively at the expense of shippers” due to the price hikes of the past months. It is somewhat unclear what these increases amount to, Simon Wey from VAP tells RailFreight.com. They differ per company, with some citing increases of over 50%, others are closer to no increase at all, and others in between those extremes.

Destroying freight on purpose?

Wey says that SBB Cargo may be taking the opportunity to raise prices before they no longer can. It is important to note here that the Goods Transport Act, which would help suppress price growth, will only come into force in January. In other words, SBB might have identified a limited time window to charge more for its services.

VAP warns that shippers are left with little incentive to rely on rail freight transport. “Given the high initial investments, these companies are unlikely to ever return to rail in the future, thus permanently dismantling SWL and thus rail freight transport.” More and more VAP members are indicating that they are turning their backs on rail.

However, that might even be SBB’s goal, Wey theorises. “I do not think that politicians have caught on to this yet”, he adds. According to the VAP representative, SBB wants to get rid of the freight department, because it is constantly making a loss of around 80 million Swiss franc (85,5 million euros) on it. By making it uncompetitive, companies will leave the business, dismantle infrastructure, and it will never return, Wey explains. That would help SBB improve its financial situation, albeit at the cost of freight.

SBB’s point of view

SBB sees it differently. “Everyone is playing their part: the Confederation is providing temporary financial support for single wagonload, customers are benefiting from market-based prices and SBB is increasing efficiency and reducing costs”, the operator says in response to RailFreight.com questions, referring to earlier published statements by the company.

Its framework for the future of Swiss rail freight, dubbed “Suisse Cargo Logistics”, should help manage future growth in freight traffic and realign SWL transport. Among other things, that means that the SWL network is going to be adapted to demand, with new terminals opening and others closing down.

“As of the 2026/27 timetable change (13 December 2026) a new production model will enable SWL operations to be simpler, more efficient, more robust and more economical”, SBB explains. “Service points with too little demand will no longer be offered on the SBB Cargo Switzerland SWL network in future.”

Once the anticipated transport volumes for 2026 are in and the customer contracts are known, SBB will plan the new SWL network, the company says. “As things currently stand, the number of service points will be reduced as of the 2026/27 timetable change, assuming the same transport volumes. Despite this reduction, around 98 per cent of wagons can still be transported based on current volumes.”

All in all, rail should have grown its capacity by 60% in 2050 based on the Suisse Cargo Logistics plan. Switzerland is expecting rail freight to grow by a third by that time, SBB says.

Already abandoning rail

The views of Swiss shippers and the rail operator clearly diverge. VAP sees the destruction of SWL happening in real time, and SBB says that it is working on making single wagonload more efficient. Still, Swiss politics have taken note of the cost developments on the rail freight network. A new parliamentary motion wants to tie SBB Cargo’s maximum price increases to inflation.

“Accordingly, SBB Cargo would have to ensure its viability primarily through more productive and efficient operations, as envisioned by Parliament in the Goods Transport Act”, says VAP. “Unfortunately, SBB Cargo has since created a reality: a significant portion of SWL customers have already turned away from rail.”

For the terminals in Buch and Chiasso, the union claimed, it should be relatively simple to find alternative solutions for the workers. However, for the facility in Brig the situation “looks the bleakest”, VSLF underlined, as there is not much availability of alternative jobs within other SBB companies in the area.

SBB Cargo’s restructuring

The restructuring of the Swiss state-owned rail freight operator aims at turning it into a profitable company. After years of losing cash, SBB Cargo decided to cut off some of the loss-making businesses. First it was combined transport, with eight terminals to be closed and 65 jobs to be cut. Now it might be time for single wagonload transport, another historically unprofitable segment.

SBB Cargo increases losses

The rail freight landscape in Switzerland (and the rest of Europe) is not going through its golden era. The latest figures provided by SBB Cargo say no different. During the first six months of 2025, the company lost four million francs (4,3 million euros) more than the same period last year, according to mother company SBB. This would put this half year’s losses for SBB Cargo at over 46,5 million francs (49,7 million euros), almost a 10% drop.

On a (not so) more positive note, the increase in losses has been contained this first six months. Between the first halves of 2023 and 2024, SBB Cargo more than doubled its losses, from 19 to 42,6 million francs (20,3 to 45,6 million euros). In order to save money and try to turn some profit, the company decided to get rid of eight combined transport terminals, a choice which will cost 65 people their jobs, especially in the Ticino area.

Passenger services thrive

If rail freight is struggling, the situation is completely different for the passengers. An increasing number of people are choosing the train. And, as the traditional Swiss punctuality dictates, an increasing number of trains are travelling on time. Both categories scored highest-ever figures in the first half of 2025, with an outstanding 94.5% of trains arriving on schedule.

Moreover, the protestors will call for maintaining active the rolling highway service connecting Italy and Germany through Switzerland. The accompanied combined transport link between Novara (IT) and Freiburg (DE), is set to cease operations at the end of the year due to too many restrictions along the network. This closure will have a significant impact on Swiss freight traffic, as most of the volumes will go back to congesting highways and roads.

Marching for rail freight

On top of this, participants at the demonstration will ask for higher costs for road freight traffic and public guarantees for investments in logistics infrastructure. The event is organised by trade unions SEV and USS and modal shift advocate Pro Alps. Participants will gather at the train station in Mendrisio and will march to the Covered Market Centre where the people whose job is on the line will have a chance to say their piece.

The protests will take place despite recent somewhat positive news. One of the eight terminals planned to be closed by SBB Cargo, will pass under the control of Swiss Post, which will keep it operational for at least another year. However, not everyone seems too ecstatic about this development, as it might only delay the closure of the terminal and not avoid it. Other than this week’s protest, trade unions will also take the issue in front of the Swiss Parliament on 9 September to highlight its national importance.

SBB Cargo’s new strategy – the closure of eight combined transport terminals – will entail the layoff of 65 people, 40 of which will be in the Ticino area. Other than Cadenazzo, SBB Cargo will leave the intermodal hubs in Oensingen, Basel, Gossau, Widnau, Renens, St. Triphon, and Lugano. The future for the rest of these locations is not yet known, but their closure would be a significant blow for trans-Alpine combined transport.

On top of that, SBB announced an additional 65 layoffs. Those are in addition to an earlier announced workforce reduction of 80 positions. “The majority of the job cuts will affect locomotive crews, shunting personnel, and technical inspection personnel on freight trains”, says SBB. The rail operator cites a focus on combined transport along the high-demand north-south axis and the discontinuation of unprofitable transit trains by DB Cargo as underlying reasons for the layoffs.

North-south pilot

The north-south axis might offer a sprinkle of hope for the future of Swiss rail freight, however. SBB wants to overhaul its freight business, and has come up with a plan for that purpose: “Suisse Cargo Logistics”. It entails infrastructure upgrades and city hubs to boost rail freight. And as part of that initiative, SBB Cargo is launching a first new pilot connection along that axis in 2026. “With the shuttle on the high-demand north-south axis, the connection between Dietikon and Stabio across the Alps will be improved and the new service will be tested”, the company explains.

Such a pilot shuttle is possible because infrastructure allows for it. The same cannot be said on the east-west axis, preventing test operations there. An expansion of the Suisse Cargo Logistics model on that axis, as well as an advancement of the trimodal terminal Gateway Basel Nord, depend on the success of the Dietikon – Stabio pilot, says SBB.

Two more demands concern finances: “a one-off payment into the old-age capital of the pension fund upon retirement” and financial support for those workers who will be relocated. The last demand made by Transfair concerns targeted investments for training, both when it comes to new skills and requalification. “The job cuts by the end of 2025 are already drastic. We therefore call on SBB Cargo to assume its social responsibility and use all opportunities to maintain jobs within the Group”, said Transfair president Greta Gysin.

Single wagonload funds should also go to the workers

The trade union also pointed out that the money allocated to support single wagonload traffic should be deployed to also benefit the workforce, not just the processes. Switzerland recently decided to significantly invest in this segment, notoriously unprofitable, with 280 million euros each year for four years followed by an additional yearly injection of 65 million euros. “We are experiencing a profound digital transformation in freight transport. This transformation can only be successfully mastered if we also take employees into account, if we offer them additional training opportunities and courses to prepare them for the new requirements”, explained Bruno Zeller, Head of Public Transport at Transfair.