Market development in Austria
Rail transport makes a significant contribution to the Austrian economy.
Every day, countless people use local and regional transport to get to work or school. Thanks to the excellently developed rail network, metropolitan areas can be reached in no time at all by long-distance trains.
Austria also plays a central role in rail freight transport. Every day, hundreds of thousands of tons are transported on the rail network to supply industrial sites with important raw materials. Austria's strategic location provides rail connections to central European logistics centers such as the ports of Hamburg, Rotterdam, and Koper.
The Austrian rail transport market consistently performs well in European comparisons in both passenger and freight transport.
Competition in Austrian rail transport
While there is fierce competition in the freight transport sector in Austria, in the commercial passenger transport sector this is only really the case on a few routes (Vienna–Salzburg, Vienna–Břeclav, and the Brenner Corridor).
In addition to ÖBB Passenger Transport (ÖBB-PV), Westbahn has been operating its own long-distance service on the Vienna–Salzburg route since the end of 2011 (with selective route extensions to Innsbruck, Munich, Bregenz, Stuttgart, and Saalfelden).
The section between Vienna and Salzburg is by far the busiest in long-distance traffic.
Since December 2017, trains operated by the Czech railway company RegioJet have also been running between Prague and Vienna, and from summer 2020 they will also continue on to Budapest. Initially, these trains were operated on Austrian territory by Graz-Köflacher Bahn, but WESTbahn subsequently took over their operational management. RegioJet now handles the services itself through its Austrian subsidiary.
There are also two providers of local transport services on the Vienna Central Station–Vienna Airport route: ÖBB-Personenverkehr and City Airport Train (CAT).
Public passenger transport follows the principle of direct award. This is carried out by various railway companies, most of which operate in regional local transport, which do not compete with each other for transport service contracts.
The rail passenger transport service is rounded off by small-scale excursion, charter, and nostalgia trips, which were operated by DPB Rail Infra Service, NÖVOG, and WLB (Wiener Lokalbahnen), among others.
internationalization
The railway sector has become increasingly internationalized in recent years.
This is partly because incumbents (state-owned companies) across Europe are trying to regain the market share they have lost domestically in foreign markets. On the other hand, the trend continues toward operating trains that cross several countries themselves, rather than entering into cooperation agreements with other rail transport companies.
Consequently, the number of companies based abroad is also increasing on the Austrian market, while at the same time Austrian companies are expanding their activities to foreign markets.
Last but not least, more and more large European shipping companies and logistics firms are continuously expanding their activities into the European rail freight market in order to be able to offer and organize the entire freight transport chain from a single source.
Passenger transport: Records for passenger and train kilometers
In 2024, rail passenger transport continued its positive growth trend: the number of passengers, passenger kilometers, and train kilometers traveled reached new record levels. Only the average distance traveled per passenger fell slightly to 42.9 kilometers—a decline that is primarily attributable to above-average growth in local transport. Nevertheless, this figure remains among the highest in Europe.
Passenger growth was significantly boosted by service expansions, increased frequency, and new connections. Particularly noteworthy are the commissioning of the Carinthian section of the Koralm Railway and additional services in the Vienna area. There was also an expansion in interregional long-distance transport, for example with new connections between Linz and Graz, Vienna and Villach, as well as additional night train connections and extended WESTbahn routes (e.g., to Bregenz, St. Johann, and Stuttgart). Overall, a record level of 138.5 million passenger train kilometers was achieved. Passenger numbers rose by six percent compared to the previous year to 348.7 million. The total number of passenger kilometers traveled amounted to 15 billion.
Rail freight transport: Stagnation in 2024
In rail freight transport, market data shows that the freight transport market has recorded low single-digit growth in both net and gross tonne-kilometers traveled.
After a significant decline in 2023, net tonnage transported rose slightly again. Rail Cargo Austria remained the market leader in 2024 with a 57.3 percent share of net ton-kilometers – a decline of 0.3 percentage points. Private rail companies (including Ecco-Rail, Lokomotion, and CargoServ) followed in second place with a total share of 27.6 percent. Ecco-Rail achieved the highest individual share among providers not belonging to the ÖBB Group, at 5.56 percent.
The market share of Rail Cargo Austria's competitors increased overall. They already dominated rail freight transport on the main transit routes (western route, Brenner). On the one hand, growing competition stimulated the market, but on the other hand, the performance of rail freight transport could not be improved in a multi-year comparison. In addition to the economic situation, construction-related line closures and poor operational quality (such as signal box malfunctions, switch malfunctions, etc.) also slowed down freight transport in 2024. International construction sites (especially in Germany), construction sites on the Tauern Railway and the western axis (flooding) led to extensive diversions.
Almost one-third of total freight transport performance in 2024 was provided via ad hoc train paths ordered at short notice – and in the case of private competitors, this figure was even over 40 percent. The volatility of rail freight transport and its need for train paths outside the annual timetable increased. It is clear that rail freight transport urgently needs adequate train paths instead of long detours and better predictability of train paths, especially in connection with construction site communication. In the future, the role of freight transport must also be given greater consideration in the construction of new lines.
Passenger transport: Record numbers once again
After years of steady growth, the Austrian rail passenger transport market was particularly hard hit by the effects of the COVID-19 pandemic in 2020. Although basic mobility services were provided almost continuously at that time, demand fell sharply in the meantime. Since then, all performance indicators have developed positively across the board, with particularly strong growth between 2021 and 2022. In 2023, passenger transport once again posted very encouraging results.
The service offering has been significantly improved once again through the expansion and increased frequency of existing connections and the introduction of new routes. In long-distance transport, WESTbahn expanded its services between Salzburg and Innsbruck, which began at the end of 2022, offering five trains per day in each direction between Vienna and Tyrol since September 2023 (one of which was extended to Bregenz in December 2023). ÖBB Passenger Transport also strengthened its long-distance connections between Austrian urban centers, reintroduced trains to neighboring countries (e.g., two daily train pairs on the Franz-Josefs-Bahn between Vienna and Prague via Gmünd), and expanded existing night train connections (including, for example, the Nightjet Munich/Salzburg and Vienna – Milan to Genoa and La Spezia).
At the same time, improved connections between long-distance and regional transport were established and direct connections to more remote regions were created. There were also numerous improvements in local transport in almost all federal states, with mainly more frequent train intervals and longer operating hours as well as additional services on weekends. Overall, all these changes resulted in a record offering of over 132 million passenger train kilometers across Austria (around three percent more than in 2022).
At the same time, demand also developed very well, reaching an all-time high of 328.3 million rail passengers. The increase in the number of passengers was more than 11 percent. This is attributable on the one hand to the revival of long-distance travel and a significant increase in tourist rail travel, and on the other hand to high fuel prices and ongoing parking space management in metropolitan areas. These effects were reinforced by the KlimaTicket, introduced in October 2021, which is enjoying considerable popularity, not least because of the often significant price difference compared to regional network tariffs. According to the Ministry of Climate Protection, around 272,000 people already had a nationwide version of this ticket at the end of 2023.
Rail freight transport: Challenging market environment
The economic situation deteriorated in 2023 compared with the previous year, which subsequently also had an impact on the main indicators for rail freight transport. Both transport performance (net ton-kilometers, gross ton-kilometers) and volume (net tons transported) declined by five and six percent respectively, both in the mid-single-digit range.
In contrast to previous years, there were few restrictions on international goods traffic, but rail freight transport was affected by a number of other factors. On the one hand, there was a cyclical decline in transport demand in Europe due to falling industrial production. On the other hand, the disruptions on the energy markets triggered by the war in Ukraine in 2022 (massive increase in traction current prices combined with a significantly more favorable development of mineral oil prices) continued and, together with the high general price level, had an impact on traction costs and thus on the competitiveness of companies. Last but not least, extensive infrastructure work and construction-related diversions, as well as the sometimes poor quality of operations in neighboring countries (especially Germany), influenced the planning and execution of transport services. Ultimately, there continued to be a shortage of qualified personnel and a Europe-wide bottleneck in the availability of rolling stock (locomotives and freight cars). Due to all these circumstances, the pressure to shift transport to road increased in 2023.
While Rail Cargo Austria reported a decline in figures compared to the previous year, its competitors recorded growth. This enabled them to further expand their market share in all three indicators and exceed the 40 percent mark.
passenger transport
Due to the increase in passenger numbers, passenger kilometers traveled rose by more than 50 percent.
The decisive factors here were, on the one hand, the phasing out of measures against the COVID-19 pandemic and the widespread return to presence at work and school. At the same time, rail services were further expanded through additions to long-distance services, general increases in the frequency of services, and extensions to operating hours in local transport. Noteworthy examples include the resumption of half-hourly service on the WESTbahn between Vienna and Salzburg and its partial extension to Munich and Innsbruck, as well as the expansion of ÖBB passenger transport night train connections, such as the Vienna-Munich-Paris route.
rail freight transport
In rail freight transport, market data showed slight growth rates of 1.4 and 2.4 percent for net and gross ton-kilometers traveled, respectively. In contrast, there was a slight decline of 0.8 percent in net tons transported in 2022. The ÖBB Group (Rail Cargo Austria) held the highest market share in net ton-kilometers by company group in 2022, with 60.8 percent. The second largest group was privately owned railways (e.g., Lokomotion, CargoServ, Ecco-Rail, etc.). Their market share rose from 14.3 percent to 24.7 percent over the last five years.
passenger transport
Due to the increase in passenger numbers, passenger kilometers traveled rose by a good 15 percent. The range of mobility options was greater than ever before due to the gradual return to the regular timetable and its targeted expansion. Long-distance transport, which was suspended at times for extended periods in 2020, increased by 18 percent, resulting in a slight increase in the average journey distance in 2021.
rail freight transport
In rail freight transport, growth rates in the upper single-digit range were recorded for both net and gross ton-kilometers traveled and net tons transported. Rail Cargo Austria and its competitors again reported higher figures, with the gains being greater for railways outside the ÖBB Group. As a result, their market share increased by several percentage points for all three indicators, reaching almost 40 percent for volume and around 37 percent for transport performance.
passenger transport
In 2020, the effects of the COVID-19 pandemic were also clearly felt in the railway sector. Passenger kilometers traveled fell by a good 45 percent, mainly due to the dramatic decline in passenger numbers. As mobility services were largely maintained, at least at a reduced level, the number of train kilometers offered fell by a comparatively moderate six percent. However, long-distance transport in particular was suspended for extended periods. As a result, the average journey distance in 2020 fell to 38.6 kilometers.
rail freight transport
In rail freight transport, there were noticeable declines in both net and gross ton-kilometers (down 7% and 7.4%, respectively) and in net tons transported (down 7.4%). The decline reported by Rail Cargo Austria was offset to a small extent by its competitors (
). As a result, their market share continued to increase for all three indicators, reaching 36.7 percent for volume and around 33 percent for transport performance.
passenger transport
Mainly due to growth in local transport, the number of passengers carried and passenger kilometers traveled rose again. This meant that the respective peak values from 2018 were exceeded once more. As a result, however, the average journey distance decreased by just under half a kilometer from 2018 to 2019, to 42.3 kilometers.
rail freight transport
In absolute terms, rail freight transport declined in terms of both net and gross ton-kilometers (down 2.3% and 0.8% respectively) and net tons transported (down 0.9%). The declines reported by Rail Cargo Austria were largely offset by its competitors. As a result, the market share of competitors continued to grow strongly for all three indicators, reaching 36.4 percent in terms of volume and between 30 and 32 percent in terms of transport performance.
passenger transport
Growth in rail passenger transport in 2018 was significantly stronger than in previous years, mainly due to the expanded local transport offering. The number of passengers carried and the number of passenger kilometers traveled grew considerably, by 6.6 and 4.7 percent respectively, and with a total of 309.9 million passengers, the previous record (290.6 million) was exceeded. However, the average journey distance decreased by just under one kilometer compared with the previous year, to
.
rail freight transport
In absolute terms, net ton-kilometers in rail freight transport increased from 23.494 to 23.734 billion in 2018, exceeding the previous year's record figure. Gross ton-kilometers also rose from a total of 45.973 to 46.639 billion. However, the number of net tons transported fell from 118.8 to 117.9 million. The decline reported by Rail Cargo Austria was largely offset by its competitors in terms of net tons and completely offset in terms of net ton-kilometers and gross ton-kilometers, thereby increasing their market share in all three indicators.and amounted to 33.3 percent (volume) and 30.7 and 28.9 percent (transport performance) respectively.
passenger transport
Rail passenger transport showed only slight growth of 0.6 percent in both passenger numbers and passenger kilometers. This is because there were no significant changes to the transport network or train services in 2017. However, a new record was set with 290.6 million passengers, and passenger kilometers also reached a new record of 12.7 billion in 2017.
rail freight transport
Rail freight transport recorded significant growth in 2017, both in terms of volume (net tons) and transport performance (net ton kilometers, gross ton kilometers). The number of net tons transported rose from 114.9 to 118.8 million tons. Net ton kilometers increased from 22.812 to 23.494 billion, surpassing the previous record set in 2010. The increases were achieved by both competitors and Rail Cargo Austria (RCA), with the former achieving higher growth rates. As a result, the market share of competitors rose to 30.2 percent (volume) and 26.9 percent (transport performance).
passenger transport
The full commissioning of Vienna Central Station in December 2015 had an impact in 2016. The new operating concept, with all long-distance traffic routed to the main station, brought improved transfer connections between long-distance trains on the East/West and North/South lines, a direct connection between Vienna Airport and the main station every half hour, and improved transfer options between local and long-distance traffic. A total of 288.8 million passengers took advantage of the improved service.
ÖBB Passenger Transport carried 2.6 percent more passengers, while its competitors saw a 0.7 percent increase in passenger numbers. Passenger kilometers rose by three percent to 12,579 million passenger kilometers.
rail freight transport
In 2016, the Austrian rail network covered a total of 5,611 kilometers (2015: 5,654 kilometers). Some little-used branch lines were discontinued.
There was slight growth in rail freight transport in 2016. The number of net tons transported increased by 1.9 percent to 114.9 million, while transport performance grew by 1.1 percent to 22,812 million net tons. As in previous years, volume and transport performance at Rail Cargo Austria declined slightly. competitors, on the other hand, recorded growth of 9.6 percent (volume in net tons) and 11.9 percent (transport performance in net ton-kilometers). The market share of competitors thus increased to 29.1 percent (volume) and 26.1 percent (transport performance).