Deutsche Bahn has no shortage of problems – the trains don’t run on time, the infrastructure is dilapidated and the financial situation is bleak. A restructuring program is supposed to help.
On Wednesday, the supervisory board of Deutsche Bahn will be considering a new restructuring program for the company. With the “S3” program, Deutsche Bahn wants to turn things around by 2027 after the last few bad months. The question is what specific changes the state-owned company can make to achieve the desired results.
According to Deutsche Bahn, the program is aimed at renovating the infrastructure, the operational situation and the economic situation. The company has recently presented a poor picture in all three areas. Two current figures make this clear: Deutsche Bahn AG made a loss of 1.2 billion euros after interest and income taxes in the first half of the year and only 60.6 percent of long-distance trains reached their destination on time in August.
Punctuality target for 2027: More than 75 percent in long-distance traffic
The situation is now to be improved bit by bit by 2027. According to dpa information, Deutsche Bahn wants to continue to be guided by the Strong Rail (DSS) umbrella strategy that has been in force since 2019 and roughly achieve the goals set for 2024 three years later. The strategy also summarizes many points that have already been addressed in recent months.
These include, for example, the general renovation of particularly important routes or the introduction of a new, coordinated construction system designed to better protect the timetable from short-term construction sites.
According to dpa information, a target corridor of 75 to 80 percent is being sought for punctuality in long-distance traffic – after 64 percent for the whole of 2023. The economic situation is to be improved not least with lower personnel costs and higher productivity. In its half-yearly balance sheet, Deutsche Bahn had already announced that it wanted to reduce personnel requirements by 30,000 jobs.
The DB long-distance transport and DB Cargo divisions are to be transformed – some of this has already begun. Both divisions have recently been in the red. Infrastructure-related disruptions are to be reduced to 4,900 per day – for the current year, Deutsche Bahn expects 6,100 such delays per day.
Transport Minister also calls for short-term improvements
The Deutsche Bahn board is now under considerable pressure due to the company’s poor balance sheet in recent months. Federal Transport Minister Volker Wissing (FDP) recently called on the state-owned company to improve punctuality and capacity utilization in long-distance traffic in the short term.
As the German Press Agency learned from railway circles, the restructuring program presented is also viewed critically. It lacks concrete measures. Ultimately, apart from the target year of 2027, there is nothing in the strategy that has not already been listed on other PowerPoint slides, it was said. Above all, it remains unclear how and where the company intends to reduce personnel requirements by 30,000 jobs.
“We will measure progress against fixed targets and discuss it regularly with the supervisory board and the owner. One thing is clear: in Germany and for DB, we need a turnaround for the better for our customers,” a DB spokesperson recently said about the restructuring program. The past few months have clearly shown the significant weaknesses of the rail system in Germany for everyone to see.
According to a report in the “Süddeutsche Zeitung”, railway boss Richard Lutz promises more commuter connections or more sprinters in the 110-page restructuring program. He also wants to redesign the area network. In addition, the turnaround times of trains are to be shortened and fewer ICE trains are to be kept in reserve.
Source: Stern
