Warnings Issued by Chief Lutz Regarding Potential Product Shortages
Deutsche Bahn (DB), Germany's national railway company, has proposed substantial increases in track prices for its long-distance, regional, and freight traffic sectors, potentially leading to service reductions.
The proposed track price increases, set to take effect in 2026, would see long-distance traffic prices rise by a factor of 1.48 (48% increase), regional traffic by a factor of 1.86 (86% increase), and freight traffic by a factor of 2.45 (145% increase).
DB officials have expressed concerns that such steep increases could force reductions in service, particularly in the regional and freight sectors, as the higher costs may not be sustainable without corresponding revenue increases.
The potential implications of these increases are far-reaching. Rising infrastructure fees could make public rail transport less attractive, potentially causing the opposite effect of environmental goals aimed at shifting traffic away from road transport.
Critics suggest that these increases could further exacerbate the financial strain on regional rail services, potentially leading to fewer trains or less frequent connections for passengers.
The European Court of Justice is currently considering a ruling on whether limiting track price increases for regional traffic is legal. This ruling could potentially impact the track pricing system reform and financial aid for railway companies.
In freight traffic, the funding requirement for all companies this year is around 350 million euros, with a budgeted amount of 275 million euros, leaving a gap. If the current funding for track prices and the later reform are not sufficient, long-distance services may need to be adjusted to ensure economic viability.
Martin Burkert, chairman of the railway and transport union and vice-chairman of the supervisory board of the railway, has warned of rising track prices and potential historical price increases of more than 10% this year. Richard Lutz, CEO of Deutsche Bahn, has emphasized the need for ways to be found in the parliamentary procedure to close the remaining funding gaps for the fiscal years 2025 and 2026.
The federal government has provided Deutsche Bahn with additional billions in equity capital, which is financed through track prices and causes increased interest rates and higher track prices. The mid-year balance for Deutsche Bahn shows that it has become more expensive but not more punctual.
These developments have sparked criticism among travelers and associations, especially families, due to the abolishment of family seat reservations and increasing ticket prices. The mid-year balance for Deutsche Bahn also indicates that there is no significant improvement in the punctuality of its services.
In conclusion, the proposed track price hikes are substantial, ranging from nearly 50% up to over 140%, depending on the traffic sector, and risk triggering service cutbacks, particularly in regional and freight rail operations. This development highlights ongoing tension between infrastructure funding needs and maintaining affordable, comprehensive rail service for the public.
[1] Source: https://www.spiegel.de/wirtschaft/soziales/deutsche-bahn-kritisiert-familien-sitzplatz-reservierung-a-1283476.html [2] Source: https://www.sueddeutsche.de/wirtschaft/deutsche-bahn-familien-sitzplatz-reservierung-1.5890912
- In response to Deutsche Bahn's proposed track price increases, the European Court of Justice is considering a ruling on whether limiting track price increases for regional traffic is legal, which could potentially impact the track pricing system reform and financial aid for railway companies, engaging the policy of vocational training for the next generation of rail industry professionals.
- The financial strain on regional rail services, due to the steep increases in track prices, could lead to fewer trains or less frequent connections for passengers, affecting the viability of local businesses that depend on reliable public transportation, further highlighting the need for vocational training programs to equip individuals with the skills necessary for sustainable careers within the industry.
