Germany’s national rail operator, Deutsche Bahn (DB), is warning of potential service cuts unless a reform of track access charges is implemented. Richard Lutz, CEO of DB, voiced concerns in an interview with “Welt am Sonntag” highlighting disproportionate increases in these charges, rising by 15 to 20 percent this year alone within both long-distance passenger and freight transport sectors.
Lutz emphasized the need for reform, noting that it’s a commitment outlined in the current governing coalition’s agreement. He cautioned against compensating for rising costs through increased ticket prices, explaining that this could lead to a significant drop in passenger volume and negatively impact revenue and overall earnings. Consequently, he indicated that service reductions would likely be necessary to achieve required cost savings.
“If political conditions do not allow for this, we must focus on those services that can be economically viable in market-driven and competitive environments” Lutz stated, signaling a potential shift towards prioritizing profitable routes.
Despite planned investments exceeding €100 billion through 2029, DB continues to face funding gaps. Lutz acknowledged that, based on jointly developed plans with the Ministry, shortfalls are projected from 2027 onward, requiring resolution in the coming months and years.
Acknowledging a “structural crisis” within the German rail system, Lutz detailed issues of obsolescence, susceptibility to disruption and overall capacity strain. He specifically referenced unsatisfactory punctuality in both passenger and freight sectors, impacting customer reliability.
Addressing potential leadership changes in light of DB’s challenging state, Lutz confirmed that the executive board would be held accountable for results. While progress has been made on vehicle availability and staffing shortages, he conceded that punctuality, particularly in long-distance operations, has not met expectations. He attributed the primary cause to decades of underinvestment in infrastructure.
Responding to questions regarding his own position, Lutz stated that he is focused on addressing the structural problems afflicting the rail network and avoided speculation about his future, emphasizing his responsibility and commitment to the role.