Government is cutting on infrastructure but is investing in rail lines
TOP MAGAZINE · Rail
The government has made substantial cuts to the infrastructure budget, but is still investing in a few rail projects such as the Ghent–Terneuzen rail link. At the same time, many road and waterway projects have been put on hold, whilst the Lely Line has been postponed once again.
Investments in rail partly spare the sector
Despite large-scale cuts in the infrastructure sector, the government is allocating funds to projects including the Ghent–Terneuzen rail link. This is an exception within a broader reprioritisation of mobility policy. Thanks to this new focus, the maintenance and partial renewal of the rail network will continue as planned, whilst many other new projects are being halted.
Stakeholders in the rail sector have expressed relief that existing rail lines are largely being spared and that projects such as Ghent–Terneuzen are going ahead. This means that freight transport between the Netherlands and Belgium via this route remains, for the time being, free from additional obstacles.
Roads and waterways face pressure to cut costs
In contrast to the rail sector, the government has pressed the ‘pause button’ on many roads and waterways. Major road projects and work on waterways are being put on hold, which has direct consequences for wider logistics networks. Funding for the construction and renewal of roads such as the A58 and A20 is being restricted and delayed.
According to official figures, this change of course will free up as much as 18 billion euros, which will be spent on the management and maintenance of existing infrastructure in the coming years. In this way, the government is seeking to safeguard current capacity and prevent major incidents.
Lelylijn delayed once again
The Lelylijn rail project – vital for freight and passenger transport to the north – has once again been put on the back burner. Despite earlier political commitments, investment in this project has been postponed yet again.
This delay is causing uncertainty amongst shippers and regional authorities regarding future capacity to the north of the Netherlands and the potential relief this would bring to existing routes.
What does this mean for your shipment?
TOP’s analysis based on the above developments.
Planning
Some rail routes are benefiting from the projects going ahead, but the postponement of other projects requires flexibility in logistics planning, particularly for shipments heading north.
Costs
By focusing on maintenance, costs for the existing rail network can remain stable, but delays elsewhere may lead to higher expenditure on detours or alternative logistics.
Point to note
Shippers would be well advised to closely monitor which infrastructure projects are still progressing; new expansions remain uncertain for the time being.
Sources
Image: TOP archive, for illustrative purposes.