ESA approves Norwegian state aid scheme for rail freight operators following the collapse of Randklev bridge

On 7-9 August 2023, Norway was hit by an extreme weather event - named Hans - which caused extensive damage to property and infrastructure. High river flows in the Gudbrandsdalslågen river led to the collapse of the 172.5 metre long Randklev Bridge on 14 August 2023, making the Dovre railway line mostly non-operational. The Dovre railway line is the central part of one of two lines that connect Oslo to Trondheim.

Rail freight operators have since the bridge collapse suffered significant economic losses. Before the bridge collapse, the 115 weekly train slots on the Oslo-Trondheim route carried cargo equivalent to more than 180 000 trailers annually. Trains currently need to be rerouted to the Røros line, which however has limited capacity, is not electrified, and has longer distances. For the Åndalsnes-Oslo route, for which there are normally 10 weekly train slots, there is no viable alternative rail route to the Dovre railway line.

The primary objective of the measure is to compensate rail freight operators for the losses incurred as a direct result of the bridge collapse caused by Hans, and thereby help them address financial difficulties. Due to environmental and traffic safety considerations, a complementary goal for the Norwegian authorities is to preserve (at least in part) the shift of freight transport from road to rail occurring before the bridge collapse.

ESA finds that the aid is compatible with the functioning of the EEA Agreement and has no objections to the implementation of the measure.

The schemes total budget to be is 300 NOK million (approximately 26 EUR million). The scheme will cover losses incurred from 14 February 2024 to 31 December 2024. If the bridge reopens earlier, the compensation period will end on the reopening day.

The Norwegian authorities notified the measure on 18 March 2024.

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