Transport minister broaches rail IPO

Transport Minister Moritz Leuenberger has floated the idea of selling part of the Swiss Federal Railways to finance its next round of expansions.

In an interview published in the SonntagsZeitung newspaper, he suggested the government might allow an initial public offering (IPO) for a minority of shares in the public company.

“For additional investments, more revenue sources are required,” he said. He said that majority control of the railway system, which is facing increasing demand, would remain in the hands of the state.

A partial privatisation resembles the controversial plan by Germany’s Deutsche Bahn, which is to sell off a 25 per cent stake to investors in 2009.

A similar scheme in Switzerland would allow the railway to finance projects such as a third track between the cities of Lausanne and Geneva and building additional tunnels.

In the interview, Leuenberger also said there was little chance that the government would implement a “road pricing” system to finance road infrastructure projects. Such a plan would have drivers pay according to distances driven rather than through fuel taxes.