State Aid for Rail Freight Operator CargoNet
The EFTA Surveillance Authority (ESA) has approved a grant to CargoNet AS, Norway’s largest rail freight operator. The aid will relieve the company of most future costs related to old public pension obligations. This measure levels the playing field with competitors not facing similar pension liabilities and supports environmentally friendly rail transport in line with Norway’s climate objectives.
CargoNet’s legacy pension obligations stem from its past as part of the former state monopoly NSB, when employees were civil servants with defined benefit pensions. After liberalisation of the rail market, CargoNet switched to a defined contribution scheme in 2019. However, it still faces costs for adjusting pension rights acquired under the old system. To address this, Norway plans to allow CargoNet to transfer these liabilities to the Public Service Pension Fund (SPK), with state funding of up to NOK 475 million in the 2024 budget covering the required lump sum payment.
For more information, see ESA’s PR.