Why the monopoly SBB could use some competition The major SRG study for the 2023 elections shows that the winner is already known

The Swiss Federal Railways are considered a model company. Hardly any other country has such a dense and reliable (intermittent) timetable. The delays that gave rise to the talks a few years ago appear to be under control. The shortage of drivers was alleviated and the situation stabilised.

But new construction sites have appeared. For some time now, there have been increasing disruptions when buying tickets in the SBB app and sometimes at the vending machines. One incident in June cited a cyber-attack as the reason, but unspecified “technical issues” are usually cited. This raises questions about the IT infrastructure.

There is an unfortunate problem associated with this. When it comes to online ticket sales, SBB lags behind the railway companies in neighboring countries. Although the outdated webshop has been given a new look, it is still not possible to reserve seats directly. And you cannot buy tickets for international connections in the SBB app.

“We’re working on it.”

When you try, you say, “We’re working on it.” With DB, SNCF or Trenitalia, in-app purchases have been possible for years without any problems, and often at a lower price. “You are absolutely right, ticket sales in international traffic are our weak point,” SBB boss Vincent Ducrot admitted two years ago in an interview with Watson himself.

The new double-decker long-distance train (FV-Dosto), purchased as a “flagship” on the east-west axis, also proved to be a weak point. There were only problems from the start. Delivery was delayed, associations for the disabled complained that the ramps were too steep and the tilting technology built into the train became an outright debacle.

Nausea in the breakdown train

The SBB wanted to shorten travel times without expensive construction work. But despite the ‘roll compensation’, the passengers couldn’t stand it during test drives. On the east-west axis, it cannot be “that 20 percent of passengers get sick,” says Peter Füglistaler, director of the Federal Office for Transport (BAV), in an interview with “CH Media”.

The new SBB Intercity is here

1/18

400 meters long, 1300 passengers, 4 years late: the new SBB Intercity is here

source: keystone / anthony anex

Last year, the SBB had to admit that the role compensation did not work. However, the annoying vibration could not be completely eliminated and the biological toilets also cause problems. SBB and BAV therefore no longer want to buy customized trains in the future, but only trains based on proven technologies.

Start for more competition

Shortcomings in ticket sales that have been known for years and a parade train that is actually a breakdown train: these are typical symptoms of a monopolistic operation that can operate free of competition. The federal railways are one of them, at least in long-distance traffic. In 2018, the BAV wanted to tender the concession again and thus ensure more competition.

Medium-sized companies such as BLS or the Schweizerische Südwestbahn (SOB) should be allowed to operate certain connections in competition with the SBB. In the end everything stayed the same. The SBB leaves part of the pie to the BLS and SOB, but the concession and thus the de facto monopoly remains in their hands.

Reduction in ticket sales

And the signs point to further isolation from abroad. In March ‘CH Media’ announced that from 2024 the SBB only wants to sell tickets for trips to neighboring countries, with a few exceptions such as the Eurostar to London. This reduction is actually justified given the problems in the IT field.

There are also inconsistencies in cross-border traffic. The NZZ recently accused the SBB of neglecting long-distance traffic in favor of regional traffic. The route between Lugano and Milan was specifically mentioned. Another constant annoyance is the trains from Zurich to Munich, which almost never arrive on time.

Heading for the TGV to Zurich?

And it could get worse. In the draft timetable of the BAV for 2035, several trains are only allowed to go to the state border to Basel. This applies not only to the notoriously punctual German ICE trains, but also to the popular and reliable TGV from Zurich to Paris. There are also signs of contraction at home.

The public transport interest group (IGöV) reacted with shock and spoke of the “biggest deterioration of the timetable of all time”. The last word has not yet been spoken. BAV boss Peter Füglistaler tried to calm things down in the interview with “CH Media”, but the plans are quite at odds with the European train landscape.

Model country Italy

The EU liberalized international passenger transport in 2019. Cross-border cooperation is nothing new, but now railway companies must open up their routes to foreign competitors. In practice, this is often easier said than done, yet liberalization in countries such as Spain is increasing competition.

A good example is Italy, where rail transport was liberalized more than ten years ago. Since then, in addition to the Frecciarossa of the Trenitalia state, private Italo trains have also been running on the high-speed network. According to experts, the fierce competition contributed to the bankruptcy of airline Alitalia.

Switzerland on the defensive

Since EU-wide liberalisation, Trenitalia offers a Frecciarossa connection from Milan to Paris. The state-owned company recently presented the plan for a direct connection with its flagship train from Milan to Munich as early as 2025. The journey time should be just four hours. Even a Frecciarossa from Berlin to Rome is under discussion.

In Switzerland, on the other hand, the liberalization of rail traffic has led to the well-known defensive attitude. If routes are cleared for international rail companies, the SBB’s offer could become worse and more expensive, warned Chairman of the Board of Directors Monika Ribar in an interview with the “Sonntagszeitung”: “There is a risk.”

The opening would be too late

Railway union SEV is a thorn in the side of a connection from Zurich to Munich with the private operator Flixtrain. She fears wage protection, which could cause additional complications in the already difficult talks with the EU about a possible extension of the framework agreement.

However, BAV director Peter Füglistaler referred to “CH Media” on an aspect that has hardly been thought about. Switzerland has already promised in the existing land transport agreement to align legislation on cross-border traffic in the European Union (EU): “This also includes opening up international passenger traffic.”

Priority for scheduled traffic

Because Switzerland is not doing its part, the EU is blocking further developments in various dossiers, according to Füglistaler. Despite the quarrels about the timetable for 2035, he thinks a solution is possible:

That seems plausible. Even the Flixtrain to Munich would not be a nightmare for Füglistaler: “With a little good will, Flixtrain could easily be integrated into the Swiss network.” What the outgoing boss of the BAV does not say, but probably means: a little competition could help the slow monopoly SBB on the jump.

The hurdles remained high due to the busy schedule. But a Flixtrain to Munich or a Frecciarossa from Zurich to Rome would not be a nightmare, but a real enrichment. Want to bet that ticket sales in the app will go very quickly?