SBB Cargo reports loss of CHF 42.6 million

SBB transported more passengers in the first half of 2024 than ever before. Additionally, construction was underway at several thousand sites on the rail network. The half-year profit amounts to 50.8 million francs, but the financial situation of SBB remains tense. SBB Cargo recorded a loss of 42.6 million francs.

(Bern) In the first half of the year, 1.34 million passengers were traveling daily on SBB trains. This is an increase of 0.7 percent compared to the previous year. Despite this record number of passengers and several thousand construction sites, passenger trains were on time 93.8 percent of the time, more punctual than ever in a first semester. 98.9 percent of connections were guaranteed. In particular, punctuality improved significantly in Western Switzerland and Ticino. The punctuality of shipments at SBB Cargo decreased by over five percentage points to 87.1 percent compared to the previous year. Reasons include the challenging situation at Gotthard, the decreased reliability of freight locomotives, and personnel availability.

SBB aims to become more efficient and productive

In the first half of 2024, SBB made a profit of 50.8 million francs, about half as much as in the previous year. The main reasons are lower revenues in freight transport and higher costs in infrastructure and regional transport (see figures in the box below).

The financial situation remains tense. For sustainable financial stabilization, SBB needs an annual profit of around 500 million francs. The net debt remains too high at 11.6 billion francs. SBB continues to exceed the debt coverage ratio set by the federal government for 2030. The pressure to save and increase efficiency remains consistently high. SBB is committed to its goals: it wants to become more efficient and productive and to comply with the debt coverage ratio of 6.5 set by the owner by 2030.

In March 2024, SBB conducted a situational assessment and outlined a long-term vision for the railway. SBB is in the process of specifying this vision. For SBB, the following is central: the expansion of the rail network is essential to meet mobility needs in Switzerland in the future. Maintenance takes precedence to ensure that the rail infrastructure remains efficient. Additionally, measures are needed to allow even more trains to operate on the existing network. From SBB’s perspective, expansion is necessary where the maximum number of passengers can benefit.

The first half of 2024 in numbers

Passenger transport

The half-year result in long-distance transport increased from 13.7 million francs to 32.3 million francs. This is mainly due to the positive development of demand, especially in weekend traffic. Despite a similarly positive market development, the result in regional transport fell from 18.3 million francs to -5.9 million francs. This is primarily due to increased costs, particularly for scheduled maintenance services for rolling stock, which fluctuate due to maintenance cycles in certain years.

Real estate

The again positive result in real estate had a stabilizing effect, rising from 114.4 to 121.3 million francs. Third-party rental income increased by over five percent. Reasons for this include higher rental income at the stations due to increased customer frequency as well as new rentals of residential and commercial properties.

Freight transport

Freight transport recorded a loss of -42.6 million francs (2023: -18.0 million francs) due to lower volumes in national and international transport. Certain sectors, such as the construction industry, caused the decline in national transport. In international transport, the economic situation, particularly in Germany and Italy, restrictions in the Gotthard Base Tunnel, and increased construction activity on certain routes in Germany were the reasons for the lower result.

 

To transport more goods in an environmentally friendly manner by rail, SBB aims to establish freight transport on an economically sustainable basis with the help of the federal government: the structural deficit in SBB Cargo’s single wagon load traffic should be eliminated. This will be supported by the renewal of rolling stock, digitization, and automation, as well as fair pricing.

Infrastructure

Infrastructure networks reported a worse result than in the previous year due to higher costs, especially for the maintenance of rail infrastructure (2024: -37.8 million francs, 2023: -17.1 million francs). The result from infrastructure energy remained stable at a profit of 48.6 million francs (2023: 48.5 million francs). Reduced energy revenues were offset by a more stable market environment.

Photo: © SBB