Between climate goals and capacity bottlenecks, railways are once again at the center of logistical considerations as a mode of transport. Neglected for decades, freight transport by rail is making a remarkable comeback — and with good reason: Rail is not only climate-friendly, but also has enormous potential to reduce congestion on roads and motorways.

But where do we currently stand? What role can rail play in the modern logistics mix — and what must happen so that the comeback remains more than just a political vision?

Status quo: lots of potential, low utilization

Although around 40 percent of long-distance routes in Germany are electrified and rail is considered the most climate-friendly mode of transport, its market share in freight transport has been dwindling between 18 and 20 percent for years. In comparison, trucks dominate with over 70%.

The reasons for this are manifold:

• Outdated infrastructure and lack of digitization
• High route fees compared to road traffic
• Lack of flexibility compared to the “just-in-time” logic of the truck
• Slow approval processes for new routes and terminals

At the same time, however, political pressure and economic arguments for shifting traffic are increasing.

Why rail is becoming more attractive again

1. Climate goals as a catalyst

The EU and Germany have set themselves ambitious climate goals. CO₂ emissions in the transport sector are to be massively reduced by 2030. Since road freight transport is a major cause, the shift to rail is considered a logical lever — particularly for medium and long-distance transport.

2. Investments in infrastructure & digitization

In recent years, multi-billion dollar programs have been launched to modernize the rail network. Particularly noteworthy:

• Digitalization of interlocking systems and control centers
• Expansion of Freight corridors (e.g. Rotterdam—Genoa)
• Funding of Terminal infrastructure for intermodal transport

At the same time, the European Rail Traffic Management System (ERTMS) introduced gradually — a uniform system intended to make cross-border transport more efficient.

3. Combined traffic is booming

The combination of road and rail is becoming increasingly popular — for example due to Before and after delivery by truck, connected to the main course by rail. New transshipment centers, automated cranes and optimised processes enable a seamless connection between the two systems. In this way, the advantages of both worlds can be combined: flexibility and reach by road, efficiency and sustainability by rail.

Case studies: Who shows the way?

• switzerland: More than 35% of freight traffic there is already handled by rail — thanks to consistent funding and high route charges for trucks.
• austria: With the ÖBB Rail Cargo Group, we are actively investing in expanding cross-border connections, including to southern Europe and Turkey.
• germany: Initial projects such as the “mega hubs” in Lehrte or Munich-Riem show how new efficiency gains can be achieved through smart infrastructure.

What companies should consider

Switching to rail requires planning — but it's worth it. Especially for shipments with:

• Medium to long distances (> 300 km)
• High volume or regular volume
• Non-time-critical delivery windows

In addition, there are Partnerships with combined transport service providers useful to make use of existing networks and know-how.

Challenges remain — but change has begun

Not everything is smooth yet: The punctuality rate in rail freight transport leaves much to be desired, capacities are limited and coordination costs are high. But the direction is right: The railways are talking again — not only in politics, but also in transport practice. The future of logistics is multimodal. And rail is a central part of it.