IRG-Rail publishes 13th Market Monitoring Report
Passenger transport market continues to grow in 2023 – decline in rail freight transport.
The annual report published by the Interregional Rail Group (IRG-Rail), the umbrella organization for European railway regulatory authorities, provides a comprehensive overview of developments in the European railway sector. It contains detailed information on railway infrastructure, infrastructure usage charges, market participants, and freight and passenger transport markets. The figures paint a mixed picture: while demand for passenger transport continued to grow strongly, rail freight transport recorded significant losses.
Austria leads EU countries in passenger transport
In 2023, the number of passenger kilometers (pkm) increased by 12% across Europe compared to the previous year. This also meant that the pre-crisis level from 2019 was slightly exceeded for the first time. Both publicly commissioned passenger transport as part of public services and commercial, non-commissioned passenger transport contributed to this growth. Despite continued high inflation averaging 7% in the IRG Rail countries, demand for rail travel remained strong, while general economic activity in other sectors (such as industry) declined.
As in previous years, Switzerland has the highest number of passenger kilometers per capita. Austria ranks first within the EU with 1,597 kilometers traveled by rail per capita. France is close behind (1,542 km), followed at a respectable distance by Sweden (1,261 km). Austria thus significantly exceeded its own record from 2019 (1,507 km).
Weak economy weighs on rail freight transport
Unlike passenger transport, rail freight transport suffered significant losses in 2023. Transport performance (net ton-kilometers) fell by 8% compared to the previous year. Cross-border transport was particularly affected: Europe-wide cross-border transport volume fell by 13%, causing the share of international freight transport in total freight transport to drop to a historic low of 48%.
Cost development: Infrastructure and energy costs influence railway companies
The track access charges levied by infrastructure operators developed unevenly: while they rose in passenger transport, they fell in freight transport, which essentially reflects the development of traffic. Infrastructure operators' expenditure on maintenance and renewal rose by 19% per route kilometer in 2023, with the focus on the latter.
European rail transport companies recorded rising revenues in passenger transport in 2023, which were 9% above the previous year's level and, not least due to inflation, were even 13% higher than in 2019. Despite declining transport volumes, revenues in rail freight transport also rose, which can also be attributed primarily to price increases.
Energy costs saw a contrasting trend: on the one hand, driven by lower oil prices, the cost of diesel fell by 19% in 2023. In contrast, the cost per kilowatt hour of traction current rose by the same amount, which significantly increased the operating expenses of many rail operators.
About IRG-Rail
IRG-Rail was founded in June 2011 as an association of European railway regulatory authorities. The network's 31 members provided their statistical analyses at country level for the report. The aim of IRG-Rail is to further strengthen cooperation between regulatory authorities and to promote the creation of a uniform, competitive, efficient, and sustainable railway market in Europe.
The full report is available on the IRG-Rail website at https://irg-rail.eu/irg/documents/market-monitoring.