Rail operators across the continent are questioning the future of single wagon traffic. This type of service, which from the very beginning formed the backbone of freight rail, is increasingly faced with the dilemma of rising costs and shrinking margins that threaten its competitiveness. Apparently, no operator is immune from this challenge. Even Switzerland’s FFS Cargo, long known for its widespread and comprehensive coverage, has launched a deep review of its single wagon operations for individual customers.
In 2024, the freight division of the Swiss federal railways recorded a loss of more than eighty million euros. It is worth recalling that SBB Cargo must cover its own operating costs, since freight services are not considered a guaranteed public service, and the real burden on its accounts comes precisely from single wagon traffic.
If Switzerland is at a crossroads, the outlook is no brighter for the German railways. According to information gathered from industry sources, Deutsche Bahn is preparing to make significant cuts to its single wagon services. A key factor is that this type of traffic relies heavily on public subsidies, and there is no certainty that the state will continue to provide support. On top of that, DB Cargo must return to break-even by the end of 2026 to avoid European Commission sanctions over earlier state aid deemed to have distorted the market.
The freight arm of the federal railways finds itself virtually alone in this field, since 90% of single wagon services in Germany are operated by DB Cargo, while all other private rail companies have focused on more profitable segments such as intermodal. For this reason, should DB Cargo scale back or abandon single wagon operations, it would mean the end of this type of service in Germany, with a sharp overall drop in freight carried by rail.
Hazardous goods and chemical products are the first to be left without a viable rail option. No industrial or commercial company would be willing to invest in a rail service with no long-term guarantees. Analysts note that there is no easy way out, since single wagon freight is considered structurally unprofitable due to its disproportionate handling costs: shunting an isolated wagon requires almost the same effort as assembling a full train.
Yet not everyone is ready to give up, and some are moving in the opposite direction. France is preparing to invest almost 160 million euros to modernise and strengthen four marshalling yards that are heavily dedicated to single wagon services. Funding will be split between national and local authorities (50%), the European Commission (35%) and infrastructure manager SNCF Réseau (15%).
The four hubs involved are Woippy near Metz, Le Bourget north of Paris, the Sibelin yard south of Lyon and Miramas north of Marseille. Some works have already been completed, while subsequent phases are scheduled to finish by 2027. These four sites handle nearly 80% of France’s single wagon traffic, which accounts for 24% of all rail freight in the country, representing an annual volume of eight billion tonne-kilometres.
Piermario Curti Sacchi
