Germany to see more rail competition

Germany’s rail regulator has just opened the way for a big expansion in long-haul rail competition in a ruling against state-owned operator Deutsche Bahn, which currently operates over 90% of Germany’s long-distance routes.

The ruling by the Federal Network Agency came in a case brought by Italian private operator Italo, which charged DB with obstructing competition. Under EU laws, all of Europe’s rail networks are required to allow competing operators. While competition is strong in Spain, Italy and France, both the Netherlands and Germany have been slow to open up.

Italo has said it is prepared to invest €3.6 billion to enter the German market starting in 2028. In addition, Munich-based Flix, known mainly for its bus network, is planning to increase its German Flixtrain operations.

DB, which has been noted in recent years mainly for delays, breakdowns and poor maintenance, and is in the middle of major modernization work, says that the ruling will “worsen the structural problems of rail junctions.”

The decision, once formalized, will require DB InfraGO, DB’s infrastructure division, to not allocate more than 60-75% of rail capacity to the same company if there are competing requests. That does not apply to regional or freight operations.

Image: Italo train (Moliva/Wikimedia Commons)

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