Minister Hanke secures financing for crucial step towards climate-friendly rail transport in Zillertal

With the 2027/2028 biennial budget, the federal government has significantly increased the Medium-Term Investment Program for Private Railways (MIP): Starting in 2027, an additional €25 million will be available annually from the federal government, on top of the regular funding for private railway infrastructure. This brings the total budget to approximately €114 million. This will enable the necessary infrastructure modernization for the transition from diesel to modern battery-hybrid trains. The federal government is also guaranteeing the state of Tyrol partial co-financing for the procurement of the new, electrically powered vehicles, thus facilitating the prompt commencement of the tendering process.

The federal government is contributing to the costs of switching from diesel trains to battery-hybrid trains. Hanke: "An important step for modern and climate-friendly mobility in the Zillertal."

“In the budget negotiations, we succeeded in significantly increasing the medium-term investment program for private railways, despite noticeable consolidation pressures, in order to secure the most urgent infrastructure projects. This will allow the implementation of those projects for which the federal states have also made funding commitments. With the current two-year budget, federal participation in the upcoming vehicle procurements for the Zillertal transport company is possible. In my view, public transport is an essential public service – especially in rural regions like the Zillertal, people must be able to rely on a dependable, modern, and climate-friendly railway. Furthermore, these modernizations will stimulate the economy, employment, and tourism in the region. I thank the State of Tyrol for its excellent cooperation and am pleased that we can pave the way for improvements for passengers,” emphasized Federal Minister Peter Hanke.

“The decarbonization of the Zillertal Railway is a key project for the region and the state. I am pleased that, with the backing of Tyrol, we have succeeded in securing the necessary federal funding for the timely switch to an electrified drive system. Thanks to the support of Federal Minister Peter Hanke and the commitment of the Zillertal region, nothing now stands in the way of rapid implementation. Special thanks also go to Deputy Governor Josef Geisler and Member of Parliament Franz Hörl, who have been instrumental in advancing this joint project. Now it is crucial that we waste no more time and make the best possible use of the available funds from the federal government, the state, and the region,” explained Tyrol's Governor Anton Mattle.

A crucial step towards climate-friendly rail transport in the Zillertal valley

Provincial Councillor René Zumtobel is delighted: “Tyrol’s efforts in the federal budget negotiations have paid off. With the federal government’s funding commitment for the new infrastructure and vehicles, the next project phases can now begin. This brings us a significant step closer to decarbonization, and by 2030 a new era of emission-free mobility will begin in the Zillertal valley.”

“I am pleased that the federal government is taking the lead and thank Federal Minister Peter Hanke and Governor Toni Mattle for their commitment and assertiveness in view of the strained national financial situation,” said MP Franz Hörl.

The Zillertal valley is heavily burdened by tourism and commuter traffic, and the Zillertalbahn's current diesel-powered trains have reached the end of their technical lifespan. A timely decision regarding the future operation of the railway was therefore crucial. Modernizing the fleet is thus a significant contribution to a high-performance and reliable rail connection. The switch to climate-friendly battery-hybrid trains is also an important step towards decarbonizing the transport sector. The new, modern, and accessible trains are designed to meet the region's needs and make local public transport in the valley more attractive and efficient – ​​benefiting both commuters and visitors.

Modernization as an engine for the economy, employment and tourism

The project represents a significant volume of public investment, which will generate orders for the railway industry, infrastructure construction (overhead lines, charging infrastructure, substations) and the regional construction industry over several years, thus securing added value and jobs in the region as well as in the entire Austrian economy.

The Zillertal Railway is also of considerable economic importance to Tyrol's most significant tourist region, as it is an integral part of the tourist infrastructure, particularly through its connection to the ski resorts. For the Zillertal municipalities, which are majority co-owners of the railway through Zillertaler Verkehrsbetriebe AG, the project represents a clear commitment to long-term, secure public regional mobility.