Change in CEO leads to project uncertainties

Criticism of the CHF 35 billion project has been growing in recent months, leading to significant changes within the company. The CEO is being replaced, and staff layoffs are expected as part of a reevaluation of the project by Cargo Sous Terrain. The tunnel project, which aims to create a freight transport route from Geneva to St. Gallen, has faced scrutiny and doubts from experts.

Cargo Sous Terrain’s announcement highlighted the importance and recognition the project has received for its potential to ensure a sustainable supply of goods. However, the company also revealed plans to re-examine various aspects of the project, including route planning, hub locations, financing, and market requirements. This reevaluation will lead to changes in leadership, staffing, and resource allocation.

Early critics of the project, including former SBB CEO Andreas Meyer and transport entrepreneur Nils Planzer, expressed skepticism about its feasibility. The recent developments within Cargo Sous Terrain, including the potential withdrawal of major shareholders like Swiss Post and Coop, have raised concerns about the future of the project.

Financial expert Christoph Hammer emphasized the challenges of making the project financially viable, given the high costs and competitive logistics market. Planzer echoed these concerns, noting the lack of a convincing concept for the last-mile distribution of goods and questioning the need for such a costly infrastructure project.

Despite the criticisms and uncertainties surrounding Cargo Sous Terrain, the company remains optimistic about its future. Spokesperson Jasmin Knight reassured stakeholders that the project review will enhance its quality and feasibility, increasing the chances of successful realization. Knight also mentioned ongoing discussions with potential investors to support the upcoming construction phase.

While the future of Cargo Sous Terrain remains uncertain, the company is committed to addressing the critiques and challenges it faces. The reevaluation process will determine the next steps for the project, including a revised timetable for construction and operations. Stakeholders, investors, and the public will closely monitor these developments to see if Cargo Sous Terrain can overcome its obstacles and become a successful venture in the future.