The SBB makes a clean sweep at SBB Cargo

What the SBB announces in Switzerland as a report on the “Suisse Cargo Logistics” concept is, in fact, nothing less than a major overhaul in the freight transport sector. While “comprehensive reform” might be too strong a term, no stone is left unturned. The previously highly publicized involvement of Swiss Combi (a merger of the major Swiss carriers Planzer, Galliker, Camion Transport, and Bertschi) will be reversed. The current leaders of SBB Cargo are leaving the company or stepping down from their positions. Whether Alexander Muhm, a real estate expert, can pull the freight division out of the mire remains to be questioned.

(Bern) The SBB is specifying the “Suisse Cargo Logistics” concept and strengthening its commitment to freight transport: SBB Cargo AG will again become a 100-percent subsidiary of SBB. The minority shareholder Swiss Combi is selling its 35 percent stake to SBB and will become a strategic partner. Alexander Muhm, the current head of SBB Real Estate, has been appointed as the new member of the executive board for freight transport.

With the repurchase of the shares and the new leadership in freight transport, SBB aims to strengthen and manage freight transport from a single source. The previous segment management for freight transport had a coordinating role on a mandate basis and was not a member of the executive board. Freight transport will now be managed again at the SBB group level. This simplifies SBB’s management structure and prepares for potential state support in single wagon load traffic.

Alexander Muhm has been a member of the executive board since 2019: As head of real estate, he has strengthened the profitability of SBB Real Estate and positioned the division as part of the integrated railway that fulfills its social responsibility. In addition to leading SBB Real Estate, he has shaped the “Suisse Cargo Logistics” concept as a responsible member of the executive board. He is also a board member of Hupac AG. Alexander Muhm will take on his new role starting June 26, 2023.

New Challenge

As the new head of freight transport, he is also the CEO of SBB Cargo AG. He succeeds Désirée Baer, who has led the company since 2020. Désirée Baer has significantly advanced the development of SBB Cargo and consistently oriented the organization towards customer focus and customer solutions. With the changing conditions, she has decided to leave the company and take on a new professional challenge. During her time as CEO of SBB Cargo, customer and employee satisfaction has substantially improved, and quality and productivity have increased.

The new head of freight transport is, in addition to his role as CEO of SBB Cargo AG, responsible for all freight transport subsidiaries of SBB, including the newly established SBB Intermodal AG (see box). This SBB subsidiary is to plan and create a comprehensive terminal infrastructure in Switzerland.

Transporting 60 Percent More Goods by 2050

With this, SBB is specifying the “Suisse Cargo Logistics” concept, which was presented in autumn 2022. Under the motto “For more goods, more rail,” SBB aims to transport 60 percent more goods in Switzerland by 2050 in its core business of freight transport. “Suisse Cargo Logistics” envisions expanding the transshipment network with five terminals for combined transport between Geneva and St. Gallen.

SBB thanks Désirée Baer for her significant and long-standing commitment to SBB, including her role as CEO of Securitrans Public Security AG and previously as a member of the management of SBB Infrastructure. SBB also thanks the former segment manager for freight transport, Nicolas Perrin, for his great efforts.

SBB’s Rail Freight Transport

These are the freight transport subsidiaries of SBB:

SBB Cargo AG: Provides one-seventh of Swiss freight transport with wagon load traffic, full trains, and combined transport, transporting 180,000 tons daily for its customers and relieving the roads of 15,000 truck trips daily, thus reducing the environment’s CO2 emissions by 490,000 tons annually.

SBB Cargo International: Market leader on the North-South axis through the Swiss Alps, connecting the North Sea ports with the main economic hubs in Italy with full trains from loading to unloading, or from terminal to terminal. Shareholders are SBB AG with 75 percent and Hupac AG with 25 percent.

SBB Intermodal AG: The newly established Intermodal AG will act as the builder to advance the expansion of terminal infrastructure in Switzerland, as outlined in the “Suisse Cargo Logistics” concept.

Swiss Combi and SBB Cargo Enter Strategic Partnership

In light of the changing conditions and potential state support for wagon load traffic, SBB and Swiss Combi AG, as a minority shareholder of SBB Cargo AG, have redefined their partnership.

(Bern) Swiss Combi is selling its shareholding to SBB. The price has been kept confidential. The new environment requires a clear separation of shareholder and customer roles. Within the framework of a strategic partnership, the collaboration will remain close.

Three years ago, Swiss Combi AG – consisting of the logistics service providers Planzer Holding AG (40 percent), Camion Transport AG (40 percent), Bertschi AG (10 percent), and Galliker Holding AG (10 percent) – acquired 35 percent of the shares of SBB Cargo AG. The minority shareholders have contributed valuable knowledge from the transport and logistics sector to SBB Cargo AG as a leading company in Swiss rail freight transport.

However, it has since become clear: Wagon load traffic cannot be operated cost-effectively in its current form and thus does not meet the federal requirements for self-sustainability. However, it makes a significant contribution to supply security and a functioning economy and society, and it supports traffic shift and climate goals. The Federal Council has proposed ways to sustainably strengthen rail freight transport in general and particularly single wagon load traffic. The federal parliament will decide on these proposals.

SBB Cargo AG and Swiss Combi AG believe in the future of an adapted offering in wagon load traffic. The involved companies will continue to actively support wagon load traffic and thus the shift policy. Thanks to continued close collaboration, direct access to the needs of the logistics industry is ensured for the freight railway, and transport companies will continue to promote the development of SBB Cargo’s offering in wagon load traffic.

SBB Cargo is open to further strategic partnerships with other key customers. The restructuring of the shareholder base has been coordinated with the owner of SBB AG and still requires approval from the competition authorities.

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