Dilapidated rail network, unpunctual trains, financial difficulties: Deutsche Bahn is in a bad situation. What the federal government, as owner, now expects.
Federal Transport Minister Volker Wissing is increasing the pressure on Deutsche Bahn and wants rapid improvements for more punctual and better utilized trains. The FDP politician called on the federally owned company to come up with a restructuring plan and presented a list of demands. A restructuring program for Deutsche Bahn should bring continuous improvements up to 2027. The railway should operate more economically. Divisions such as freight and long-distance transport are in the red.
Location of the track
Punctuality is very poor and the reliability of the railway is not satisfactory, said Wissing. In addition, the railway has run into financial difficulties. In the first half of the year alone, the state-owned company incurred a loss of 1.2 billion euros and is carrying debts of around 33 billion euros. Added to this is the poor operational situation, which is affecting passengers in particular, but also employees.
Wissing: Federal government has made advance payments
The minister said that when he took office in 2021, he found the railway in a difficult state and the infrastructure was in a state of disrepair. Wissing referred to the concept that had been developed to renovate particularly busy routes by 2030 – the renovation of the first route, the Riedbahn between Frankfurt and Mannheim, began in mid-July. It will be completely closed until mid-December for this purpose.
The federal government has made additional billions available to the railway and implemented legal reforms to finance the rail network. A new infrastructure division has also been established. The federal government, as the owner, has made an “advance payment,” said Wissing. The federal government is supporting the railway with enormous budgetary resources – now it is the railway’s turn. “I want to see results.”
Railway to present concept
Wissing named seven areas of action. The Deutsche Bahn supervisory board will discuss a concept at its next meeting and, in his opinion, will decide on it. He expects a report every three months on whether goals are being achieved. “We want to have a restructuring program that runs until 2027 and brings continuous improvements,” said Wissing. “There must not be the option that it won’t work. That is my requirement.”
Specifically, for example, the railway is to take measures to significantly improve punctuality “in the short term” while the infrastructure is being renovated. In July, the punctuality rate for long-distance traffic was only 62 percent. Wissing did not want to say exactly what rate he has in mind. The railway will present concrete figures. The aim is to bring punctuality to an “international top level”.
Better utilization of trains
A paper from the ministry also states that DB Fernverkehr must make better use of its trains in order to return to economic and sustainable operations. Whether this is done through “attractive prices” for trains with low utilization or by acquiring new business customers is the responsibility of the railway board. Wissing spoke out against the closure of routes.
Austerity measures at the railway
The railway has already started a cost-cutting program. Around 30,000 jobs are to be cut in the coming years. Train operations will initially be exempt from this. However, savings will have to be made there too in the medium to long term.
“The first half of the year has once again ruthlessly exposed the weaknesses of the railway system in Germany and our own problems,” the company said on Tuesday. The railway also confirmed that it is working on a restructuring plan. “The management board will launch an overall program to restructure DB over the next three years and present it to the supervisory board in mid-September,” a spokeswoman said in response to a query. “We are concentrating on restructuring the infrastructure, the operational situation and the economic situation.”
Goals should be achieved
The program will create the basis for “returning to the growth path of our “Strong Rail” strategy by 2027 and implementing the transport policy goals agreed with the government.” These include doubling the number of passengers by 2030 compared to 2015 and handling around 25 percent of freight traffic in Germany by rail.
Wissing wants leaner structures
The minister did not want to comment on whether the job cuts planned so far at the railway are sufficient. That is not the owner’s job. The ministry’s paper states that the railway must reduce duplicate structures and increase its “personnel productivity” again. It also states that investments outside of infrastructure renovation must be examined. Projects must be completed within the previously promised time and cost framework. Digital solutions must be used in the railway’s operational processes to relieve the burden on employees and improve customer friendliness.
Greens skeptical
The coalition partner, the Greens, reacted skeptically. The railway expert Matthias Gastel called Wissing’s demands a “combination of truisms, populism, contradictions and vague formulations”. Parliament is waiting for the Federal Ministry to keep promises it has made long ago. Gastel mentioned the “Modern Rail Act”, which could be used to resolve issues such as financing for digitization.
Greenpeace transport expert Lena Donat said that the railways also need to improve internally. “But their services will only improve in the long term if they have long-term, secure financing.” She called for a multi-year rail fund like the one in Switzerland.
The plans also came under criticism from the railway and transport union. “Railway workers are being made to suffer for mispolicy and mismanagement,” it said in a message to its own members, which was made available to the German Press Agency. “For the EVG it is clear: Not with us!” The union again opposed job cuts, especially in the operational sector.
Source: Stern
