Level playing field for freight transport in Belgium
16010
2016
TML examined the need and impact of subsidies for combined and dispersed rail freight transport. TML conducted analyses of the current market, price sensitivity, and the effects of the subsidy and kilometre charge and compared this data with other European countries to determine how the support could contribute to a level playing field for freight transport in Belgium.
As part of a promotion of a modal shift, the Federal Government gives a subsidy to combined (since 2005) and dispersed (since 2013) rail freight transport, as do many other European countries. More information on this subsidy can be found on their website (in Dutch). For combined transport (also known as intermodal transport), the subsidy is granted on the basis of a fixed component (per Intermodal Transport Unit ITE) and a distance-dependent component (per ITE kilometre) and only applies to transport where the entire rail component takes place on Belgian territory. For dispersed transport (also known as single wagon load), a purely distance-dependent aid (per wagon-kilometre) is given, which only applies on Belgian territory (but also for transports that are cross-border).
The aid should make these forms of freight transport more competitive on price with the more flexible road transport. The aid for combined transport almost entirely benefits containers travelling between the Port of Antwerp and the hinterland. For dispersed transport, too, Antwerp is the main hub for shunting movements.
Since April 2016, a kilometre charge for heavy trucks has been in force, which may shift the balance in terms of costs. The current support scheme for rail freight transport also expires in 2016, which made a review of the measure possible. This study examined whether the support is still needed to the same extent and whether a renewal (together with the introduction of the kilometre charge) could help create a level playing field for freight transport in Belgium.
Following tasks were carried out:
As part of a promotion of a modal shift, the Federal Government gives a subsidy to combined (since 2005) and dispersed (since 2013) rail freight transport, as do many other European countries. More information on this subsidy can be found on their website (in Dutch). For combined transport (also known as intermodal transport), the subsidy is granted on the basis of a fixed component (per Intermodal Transport Unit ITE) and a distance-dependent component (per ITE kilometre) and only applies to transport where the entire rail component takes place on Belgian territory. For dispersed transport (also known as single wagon load), a purely distance-dependent aid (per wagon-kilometre) is given, which only applies on Belgian territory (but also for transports that are cross-border).
The aid should make these forms of freight transport more competitive on price with the more flexible road transport. The aid for combined transport almost entirely benefits containers travelling between the Port of Antwerp and the hinterland. For dispersed transport, too, Antwerp is the main hub for shunting movements.
Since April 2016, a kilometre charge for heavy trucks has been in force, which may shift the balance in terms of costs. The current support scheme for rail freight transport also expires in 2016, which made a review of the measure possible. This study examined whether the support is still needed to the same extent and whether a renewal (together with the introduction of the kilometre charge) could help create a level playing field for freight transport in Belgium.
Following tasks were carried out:
- Description of the current freight transport market in Belgium in terms of transport volumes and costs.
- Estimation of the price sensitivity of the various markets.
- Impact estimates of both the existing subsidy (past) and the newly introduced road pricing (future).
- A benchmark of the above data with seven other European countries.
- A projection of the expected impact of a continuation of the subsidy on the markets concerned and on the level playing field for freight transport in Belgium.
