Italy to subsidise shunting in ports with 30 million euros over next 5 years

The European Commission has authorised a financial aid scheme to subsidise shunting operations in Italian ports. The measure, welcomed by Italian sector association Fermerci, will allocate 30 million euros over the next five years.

Fermerci’s managing director Giuseppe Rizzi labelled it a “historical measure”, which will hopefully invert the trend of the past few years. Between 2021 and 2024, rail freight in Italian ports decreased by 5% and high shunting costs are a significant factor. “It is the first time that this kind of aid is provided to the sector”, Fermerci added.

A benefit for all

The average cost per train when it comes to shunting operations is estimated at 793 euros for a train of 480 metres in length, according to Italian media including Supply Chain Italy. With the Commission’s decision, Italian port authorities can now assign funds to shunting operators, up to 500,000 euros each every year, thus providing significant cost savings.

The savings made by shunting operators will also favour rail operators requesting these services. The measure, in fact, states that 50% of the contributions will have to be transferred to rail companies. In other words, shunting operators eligible for these funds will be obliged to provide discounts covering half of the total received.

“Now we are just waiting for the inter-ministerial decree to concretely introduce the measure”, the association said. After that, Italian port authorities will be able to proceed, at their discretion but within the parameters, with the distribution of the funds. Hopefully, this initiative will alleviate a situation that, in Italy as in many other European countries, has been struggling for quite some time.