Swiss Food Suppliers Shift to Road After Derailment, NZZ Reports

Companies are finding alternative routes to transport goods after a freight train derailment this week on the north-south rail axis of the Gotthard tunnel in Switzerland, NZZ am Sonntag reported.

(Bloomberg) — Companies are finding alternative routes to transport goods after a freight train derailment this week on the north-south rail axis of the Gotthard tunnel in Switzerland, NZZ am Sonntag reported.

Swiss grocers generally rely on the railroad to transport goods and, as such, are being impacted by the tunnel closing. In the short term, retailers Coop and Migros have switched to the roads to move goods in both directions, the Swiss newspaper reported.

Resulting additional costs cannot be calculated yet, Coop told the newspaper, but said that supply is ensured to all stores.

The tunnel links Northern and Southern Europe and, at 57 kilometers (35 miles), is the world’s longest railway passage. Last year, it accounted for nearly 70% of all train freight moving through the Swiss alps. A large number of steel tubes, paper and packaging products for Italian companies are regularly transported via the tunnel.

Thursday’s accident, in which no one was hurt, derailed 23 of the cargo train’s 32 cars, and damaged a gate in a tunnel connecting the two main tubes that run North to South. The tunnel will remain closed until at least Wednesday, the country’s federal rail operator SBB said last week.

Postal trains can use an older Gotthard tunnel because they are smaller than the freight containers, NZZ said. The alternative route will add up to an hour of travel time. The national rail operator was still able to handle passenger traffic in a stable manner on Saturday, including extra trains for an annual summer festival in Zurich, AWP reported.

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