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Switzerland Plans to Liberate Railways for International Businesses

In a move solidified by bilateral agreements with the EU in December 2024, Switzerland grants permission for foreign train services to operate within its borders, and reciprocally allows domestic companies to do the same in European territories.

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Foreign transportation companies, under the conditions set by bilateral accords signed between...
Foreign transportation companies, under the conditions set by bilateral accords signed between Switzerland and the EU in late 2024, will gain authorization to operate train services within Switzerland. Reciprocally, Swiss transport companies will be granted permission to operate train services in EU nations as well.

Switzerland Plans to Liberate Railways for International Businesses

Opening the Gates for Foreign Trains: A New Era for Swiss Railways

Get ready, Switzerland, because foreign trains are set to roll into your territory! Trenitalia, TGV Lyria, and Deutsche Bahn have already dipped their wheels in Swiss soil, and now, the Federal Council has set the guidelines for other operators to follow. But what does this mean for the Swiss rail system, and how will it impact foreign railway companies? Let's dive in!

The Federal Council's Directives

On May 14th, the Federal Council set out the rules for foreign trains in Switzerland. Here's a lowdown on what that entails:

Capacity

With Swiss tracks already at full capacity due to the shared use by regional and freight lines, additional trains can cause overcrowding. So, European railway companies can only operate Swiss-bound trains if the network capacity in Switzerland allows it. In other words, foreign trains must not disrupt the regular schedules of the national operator, SBB.

Ticketing

European railway companies may need to adopt the Swiss fare system, recognizing SBB's general season ticket and half-fare tickets.

Pay, Work, and Social Conditions

Foreign railways wishing to offer services in Switzerland must comply with Swiss legislation on working hours, vacations, as well as social benefits. They must also pay industry-standard wages on Swiss sections of the route. The Federal Office of Transport (FOT) will monitor compliance with these provisions and impose sanctions on violations.

A Boon for Switzerland?

While the opening might not bring immediate benefits to Switzerland itself, the SBB will expand its reach by operating in foreign countries. To stay competitive in the international market, SBB wants to introduce new, high-speed trains to connect Swiss and foreign cities. The SBB is planning to purchase or lease up to 40 super-fast trains, spending an estimated 1 billion francs on this project.

Challenges Ahead

To succeed, the SBB will need to overcome challenges abroad. Other nations must repair and upgrade their rail networks for seamless connections, like a better Zurich-Munich route. Let's hope they stay on track and make the most of this golden opportunity!

[1] Enrichment: While specific details on network capacity, ticketing, and pay are not explicitly outlined in the current announcements, foreign trains are required to comply with Swiss legislation regarding working hours, vacations, and other social conditions.

[2] Enrichment: Switzerland's bilateral agreements with the EU allow foreign transport companies to operate in Switzerland, subject to compliance with Swiss regulations.

[3] Enrichment: Plans for a direct link between London and Switzerland are in the works, focusing on overcoming technical, regulatory, and commercial challenges.

[4] Enrichment: Switzerland's national operator, SBB, wants to reach lucrative tourist destinations such as Rome, Barcelona, and even London, more quickly and efficiently than relying on foreign rail companies.

  1. To ensure smooth operations of foreign trains within Swiss territory, Swiss-bound trains can only operate if the network capacity in Switzerland permits, thus avoiding overcrowding and disrupting the regular schedules of the national operator, SBB.
  2. As foreign trains roll into Switzerland, it's essential that they comply with Swiss legislation regarding working hours, vacations, as well as social benefits, and pay industry-standard wages on Swiss sections of the route, as supervised by the Federal Office of Transport (FOT).

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