Deutsche Bahn has no shortage of problems – trains are late, infrastructure is dilapidated, and the financial situation is dire. Can a new restructuring program help?
New promise to rail customers: In long-distance traffic, 75 to 80 percent of trains should be running on time again in three years. This is one goal of a restructuring program that the board of directors led by rail boss Richard Lutz presented to the supervisory board. With the concept called “S3”, the state-owned company wants to restore its performance by 2027 and improve “the customer experience through greater punctuality, reliability and fewer disruptions.”
“The renovation of infrastructure and operations as well as the economic recovery of the company are clearly formulated goals to get the group back on track,” said Supervisory Board Chairman Werner Gatzer. The Supervisory Board now expects a more concrete overall program for the December meeting and, according to Gatzer, wants to continuously monitor progress.
The success of the concept will be measured by several key figures. Among other things, the number of infrastructure-related delays is to be reduced by 20 percent by 2027, despite continued high levels of construction activity. The operating result (EBIT) in the system network is to rise to 2 billion euros by 2027. In addition, there is the punctuality target.
The company has recently presented a poor picture. Two current figures: Deutsche Bahn AG posted 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.
“The railway must be in the black, and not sometime in five or six years, but as quickly as possible,” said Federal Transport Minister Volker Wissing (FDP) on the ZDF morning magazine. In the future, the minister wants to be informed about progress every three months.
Previous strategy remains a point of reference
With the restructuring program, Deutsche Bahn is continuing to align itself with the Strong Rail Strategy (DSS), which has been in force since 2019, and now wants to roughly achieve the goals set for 2024 three years later. The program summarizes many points that have already been addressed in recent months.
These include general renovations of particularly important routes or the introduction of a new construction system designed to better protect the timetable from short-term construction sites.
Deutsche Bahn Supervisory Board extends contracts of two board members
The Supervisory Board extended the contracts of two board members by five years each. Michael Peterson and Evelyn Palla will remain in their positions. Peterson is responsible for long-distance transport on the DB Board of Management, Palla for regional transport. Both have been members of the Group Board of Management since July 2022.
Railway boss Lutz has been under pressure in recent months. Transport Minister Wissing is increasingly demanding short-term improvements, for example in punctuality and capacity utilization of long-distance traffic.
EVG Chairman: No clarity on job cuts
Martin Burkert, chairman of the railway and transport union (EVG), criticized the supervisory board, saying it had not provided any clarity on the planned job cuts today. “There must be no cuts in personnel essential to operations,” said Burkert.
The economic situation is also to be improved with lower personnel costs and higher productivity. In its half-yearly report, Deutsche Bahn announced that it wanted to reduce personnel requirements by 30,000 jobs.
Newspaper report: Renovation program promises more trains for commuters
According to a report in the “Süddeutsche Zeitung”, railway boss Richard Lutz promises more connections for commuters 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
