German rail woes: How can Deutsche Bahn turn things around? – DW – 08/07/2024 (2025)

Germany's railway system wasonce a source of national pride. But the network and its operator, Deutsche Bahn (DB), havebecome a major source of frustration for train travelers in recent years.

Passengers are increasingly confronted with overcrowding, delays andcancellations, as well as regular closures of large sections of track for maintenance and repair works.

DB's problems also grabbedattention abroad during the 2024 UEFA European Football Championship, which took place in Germany between June 14 and July 14.

Train breakdowns and overcrowded platforms made international news and caused acute embarrassment in a country that has a reputation for efficiency, punctuality and top-quality infrastructure.

What's behind DB troubles?

Train delays with DB have steadily risen, with less than two-thirds of long-distance trains reaching their destination on time last year –– a new record low. In Germany today, a train is considered punctual if it is delayed by less than six minutes.

DB's finances are also in bad shape. In the first half of this year, the company reported a loss of over €1.2 billion (roughly $1.3 billion). Its total debt now amounts to around €34 billion.

DB's troubles stem in part from decades of neglect and chronic underinvestment.

"The problem is that Germany has neglected its rail infrastructure far too long,"said Sabrina Wendling of Pro-Rail Alliance, a nonprofit advocacy organization in Berlin focusing on the improvement of rail transport.

"At the same time, demand for passenger traffic and rail freight has grown enormously," she added.

Over the past three decades, the rail infrastructure in Europe's largest economy has come under growing stress.

While passenger traffic and freight transported on trains have surged, the network has shrunk, said Pro-Rail Alliance.

Andreas Knie, mobility researcher at the Berlin Social Science Center (WZB), blames the situation on policy choices favoring road transport over rail.

"For decades, Germany has prioritized the car and road infrastructure,"he said.

Philipp Kosok, a transportation expert at the Berlin-based think tank Agora Verkehrswende, echoed this view.

"The railroads compete primarily with road transport, which is heavily subsidized through tax subsidies that are problematic for climate protection reasons,"he told DW, adding that the "same applies to air traffic."

"DB also has to pay very high network charges. All rail companies have to pay fees to be able to use the infrastructure. In the case of road transport, however, users don't have to pay any tolls for using German roads,"Kosok pointed out.

More investment, but not enough?

But Germany's current coalition government, made up of the center-leftSocial Democratic Party (SPD), theenvironmentalist Greens and the neoliberalFree Democratic Party (FDP), is keen to promote trains over cars as part of its efforts to meet climate goals and slash greenhouse gas emissions caused by road transport.

It has vowed to double passenger transport via train by 2030, while increasing the share of freight carried by rail to 25%.

To this end, the government has announced plans to funnel billions of euros into modernizing rail infrastructure.

The plan involves overhauling thousands of kilometers of track as well as bridges, stations and outdated train equipment such as signal boxes and switches.

Last month, DB launched the first phase of the massive renovation program, starting with works to upgrade the 70-kilometer (45-mile) stretch connecting Frankfurt and Mannheim.

"The current federal government is investing more in the rail network than its predecessor, but it's not investing as much as would actually be necessary to modernize or even expand the entire network,"saidKosok.

According to Pro-Rail Alliance, government spending on rail infrastructure in Germany amounted to just €115 per capita in 2023.

It said that neighboring countries such as Austria (€336 per capita) and Switzerland (€477 per capita) invest considerably more.

"Since 2024, the state has been investing significantly more in the rail than in the road infrastructure," said Wendling of Pro-Rail Alliance. "However, we need to invest even more than that, as construction costs have risen dramatically and we definitely have to build more train routes and new train routes to increase capacity on the railway."

Call for structural reforms

But more money alone, without structural reforms and changes to DB's organization, offers no solution to the overloaded train infrastructure.

Kosok said the government lacks a "clear strategy"for putting DB on a growth path. Germany hasn't been able to implement clear and consistent policies for promoting rail transport for decades, unlike in neighboring countries like Switzerland, he noted.

DB is a fully state-owned company, but operated like a private firm.

"The company has a completely wrong and complex structure ––it's a hybrid model, being a public sector entity on the one hand, while operating in a highly competitive market environment on the other," said WZB mobility expert Knie.

He called for a more integrated railroad company ––eliminating DB's dual public and private structure ––to improve coordination and efficiency.

"Good railroads are integrated railroads, where the network and operations belong together. There must be no separation between them and they have to be operated as one unit,"he underlined.

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What's needed in the long run?

There is also a need for long-term planning and policy certainty, said the experts.

"Making the rail infrastructure future-proof is definitely a marathon and not a sprint. We can only achieve this with a strongly committed government and a reliable financing structure for several years,"said Wendling.

As railroads involve large-scale and complex infrastructure, it requires long-term planning and policy certainty, said Kososk.

"If we decide on a certain strategy today, we have to stick with it for many years in order to really reap the rewards,"he noted.

"Even future governments will have to commit themselves more to rail transport, pump more investment, implement structural reforms, and reform the entire financial structure of the transport economy by gradually eliminating the climate-damaging subsidies," he added.

Edited by: Rob Mudge

German rail woes: How can Deutsche Bahn turn things around? – DW – 08/07/2024 (2025)

FAQs

Is Deutsche Bahn in loss? ›

BERLIN, July 24 (Reuters) - German rail operator Deutsche Bahn (DNB. UL) has chalked up a net loss of 1.2 billion euros ($1.3 billion) during the first half of this year, as expenses to upgrade its aging infrastructure ballooned, documents seen by Reuters showed.

What percentage of freight is moved by rail in Germany? ›

In total, the percentage of rail transport amounted to 19.8 percent in 2022.

What is the best train company in Germany? ›

The Deutsche Bahn is the main train company in Germany and it operates with practically any route. The DB-SNFC is the high-speed train company that connects German cities with France, typically operating routes between Paris and ten cities in Germany.

Are the trains in Germany reliable? ›

German Rail, or Deutsche Bahn (DB), has a reputation for delays, technical failures and strikes. When things go right, however, negotiating the rail network is one of the most pleasant German travel experiences that doesn't involve a Mercedes-Benz 450.

Why is Deutsche Bahn so slow? ›

"Our railway system is dilapidated, the infrastructure has been run down for decades and too little money has been invested in the railway system," he said. According to Neuß, the low punctuality rate is mainly due to construction works. Added to this are unplanned problems that crop up such as signalling faults.

How reliable is Deutsche Bahn? ›

The extent of Deutsche Bahn's problems is not just anecdotal. Official figures showed record delays in 2022, when more than a third of long-distance trains ran late, and delays to regional and freight trains became more frequent.

Which country uses trains the most? ›

Switzerland is the top country where people travel the most by rail each year at 2431 kms per person, followed by Japan at 2142 kms and Austria at 1505 kms per person per year. The chart presents countries where the total travel by rail was more than 5 billion passenger-kilometers.

What is the largest freight rail system in the world? ›

The Freight Rail Network. Running on almost 140,000 route miles, the U.S. freight rail network is widely considered the largest, safest, and most cost-efficient freight system in the world.

Who has the best railway system in Europe? ›

1. Switzerland. Tucked inside the small but incredibly beautiful country of Switzerland is one of the most efficient and scenic rail networks in the world.

Who owns German trains? ›

The DB is owned by the Federal Republic. By the Constitution, the Federal Republic is required to retain (directly or indirectly) a majority of the infrastructure (the present DB Netze) stocks.

What is the best train to take in Germany? ›

Deutsche Bahn (German Railways) high-speed IC and ICE trains are easily the best way to travel between major town & cities all over Germany, in comfort at ground level.

Which country builds the best trains? ›

It probably comes as no surprise that in a global 2019 survey of railroad efficiency, the top two places went to Japan and Hong Kong, with scores of 6.8 and 6.5 (out of seven) respectively.

Are there toilets on DB trains? ›

Power sockets, WiFi & toilets

There are power sockets at all seats in both classes. IC trains are being fitted with WiFi, but not all cars have it yet. Every car has at least one toilet.

Is Deutsche Bahn profitable? ›

The group's revenue increased by 19.1% to €56.3bn in 2022 as against €47bn in 2021. The group's profit before taxes stood at €932m in 2022.

Is Deutsche Bahn a monopoly? ›

Let me tell you about Deutsche Bahn if you don't know how disastrous a monopoly can be. It's a German railway company running the entire national railway network (34,000 kilometers).

Is German rail profitable? ›

Some 1.8 billion passengers took DB's trains

With an operating profit of EUR 1.1 billion, DB Schenker's adjusted EBIT was still more than twice as high as it was before the Covid pandemic. In DB's core business, the Integrated Rail System, revenues rose 6.2% to about EUR 26.2 billion.

What is the annual revenue of the Deutsche Bahn? ›

In 2023, revenue amounted to approximately 45.2 billion euros, an increase compared to around 52 billion euros in revenue the year before.

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