The European Combined Transport (CT) sector witnessed a 4.25% rebound in the second quarter of 2024, marking a recovery from disturbances in the first quarter of the year. This positive performance uptick reflects cautious optimism among industry stakeholders, although future prospects for the sector remain uncertain due to anticipated infrastructure projects during the summer. While policymakers are hopeful about managing these upcoming disruptions, the International Union for Road-Rail Combined Transport (UIRR) maintains a “neutral” business sentiment. Key infrastructure projects that pose potential risks include the Simplon route, the German Passau section, the Rhine Valley, the Sofia-Nis railway, and various works around Budapest.
Ralf-Charley Schultze, Director-General of UIRR, has raised concerns about the potential negative impacts of poorly coordinated infrastructure works on the quality and quantity of services across Europe. He emphasizes the crucial need for the support of policymakers to bolster business confidence, which is essential for the sector’s development. Despite facing these challenges, the CT sector continues to make significant investments in transport and terminal capacities, along with digital solutions that aim to enhance its competitiveness. However, the looming infrastructure works present a glaring threat that could undermine these advancements if not managed effectively.
Impact of Infrastructure Projects on CT Operations
Key infrastructure projects across Europe are set to begin during the summer, posing significant risks to the operations of the Combined Transport sector. The Simplon route, the German Passau section, the Rhine Valley, and the Sofia-Nis railway are some of the critical segments that will undergo extensive work. Additionally, various projects around Budapest are expected to add to the disruptions. These developments threaten to hamper the sector’s operations, potentially leading to increased transit times and operational costs. Such disruptions could adversely affect the quality and reliability of services, making it challenging for the sector to maintain its competitive edge in the transport industry.
The Director-General of UIRR, Ralf-Charley Schultze, has accentuated the need for better coordination of these infrastructure projects. He warns that the lack of streamlined efforts could result in significant setbacks, not just in terms of service quality but also in service quantity. Furthermore, the sector’s ongoing investments in improving transport and terminal capacities risk being nullified if infrastructure works are not managed judiciously. The overall sentiment within the industry remains cautiously optimistic, yet this could quickly swing to outright concern if policymakers do not address the coordination issues effectively.
The Need for Governmental Support
The European Combined Transport (CT) sector experienced a 4.25% rebound in the second quarter of 2024, effectively recovering from the disruptions faced earlier in the year. This positive trend signals cautious optimism among industry players, despite uncertainties due to upcoming summer infrastructure projects. Policymakers express confidence in managing these challenges, but the International Union for Road-Rail Combined Transport (UIRR) holds a “neutral” business sentiment. Key projects posing risks include the Simplon route, the German Passau section, the Rhine Valley, the Sofia-Nis railway, and various areas near Budapest.
Ralf-Charley Schultze, Director-General of UIRR, has voiced concerns about the potential negative impact of poorly coordinated infrastructure works on service quality and quantity across Europe. He stresses the importance of policymaker support to build business confidence, essential for the sector’s growth. Despite these challenges, the CT sector continues investing significantly in transport and terminal capacities, along with digital solutions to boost competitiveness. However, the pending infrastructure projects present a significant threat that could jeopardize these advancements if not adequately handled.
