Austria's strict rail freight law sparks industry backlash and calls for reform

Austria's 'rail mandate' is facing growing criticism from industry leaders. The law, which forces companies to transport recycling materials, secondary raw materials, and waste by train for journeys over 100 kilometres, has been called impractical and damaging to business. Calls for urgent reform are now intensifying as firms struggle with rejections and extra costs.

The mandate was introduced to push more freight onto trains, but its strict rules have caused major problems. Since February 2026, no other EU country has enforced similar rail transport requirements for recyclables or waste. Yet Austria's law keeps tightening, with the distance threshold dropping from 300 km in 2022 to just 100 km today.

Industry groups report that 97.2% of transport requests made through a dedicated rail platform were rejected in 2023 and 2024. Out of 3,869 inquiries, only 108 received approval. Companies now face extra paperwork, delays, and costs—with no guarantee of available rail capacity.

Rail Cargo Group claims 200,000 tons of waste have already moved to rail under the mandate, with potential for another 700,000 tons. However, businesses argue the system is unworkable. Many are now sending secondary raw materials abroad instead of dealing with Austria's bureaucracy.

The industry is pushing for a quick change, proposing a higher threshold of 50 tons per shipment. Rail Cargo Group is also working with rejected applicants to find alternative transport solutions.

The current 'rail mandate' has led to fewer approved shipments and higher operational burdens for companies. Without reform, firms warn that Austria's competitiveness will suffer, and more recyclable materials could be lost to foreign markets. The government now faces pressure to adjust the law before further damage occurs.