Some of the rail network is dilapidated, resulting in late trains – Transport Minister Volker Wissing (FDP) now wants to promote investments in rail.
Specifically, the federal government should be given more leeway in financing the infrastructure. This provides for an amendment to the so-called Federal Railway Extension Act. The Federal Cabinet launched a corresponding bill.
According to the ministry, the law is the legal basis for investments in the approximately 33,800 kilometers of federal rail network. However, its previous design has increasingly proved to be an obstacle to investment.
“The network must be up and running again as quickly as possible so that rail can finally develop its full potential as a climate-friendly mode of transport,” says Wissing. Thanks to the change in the law, measures could be implemented faster, more optimized and bundled in the future.
In future, the federal government should also be able to contribute to the costs of maintenance and repairs – and not just to the costs of construction projects. This will quickly have an impact on passengers, said a spokesman for Wissing.
Removal of the “modernization backlog”
The draft law states that the “modernization backlog” in the railway infrastructure is large and its removal cannot be delayed. Reliability and punctuality are basic requirements in order to be able to achieve growth targets at Deutsche Bahn. “Therefore, a change in thinking is required that enables massive and rapid investments in the modernization and expansion of the infrastructure.”
The state-owned Deutsche Bahn had announced “general refurbishment” of important routes, which should start in the summer of 2024. The railway has a further investment requirement of around 45 billion euros by 2027. According to the draft law, around 7.5 billion euros should go to the planned new federal financing options are no longer available.
Dirk Flege, Managing Director of the Pro-Rail Alliance, told the German Press Agency: “The amendment to the law is the first step in the promised rail reform. So far, the federal government’s responsibility for financing has stopped at the edge of the platform.” Federal funds could now also be spent on waiting rooms in train stations or for monument protection. “These are improvements that will reach people in the coming years. The pressure on Deutsche Bahn AG to sell “unprofitable” station buildings is finally being reduced,” said Flege.
“Acceleration Commission Rail”
The Ministry emphasized that the draft law implements a key requirement of the “Rail Acceleration Commission”. The Commission’s report with industry representatives said that rail infrastructure financing was complex. It delays the implementation of construction measures. For example, federal grants are only possible for the maintenance and for the expansion and new construction of infrastructure, but not for plant maintenance – “with the result of driving to wear and tear”.
The planned changes are closely related to the intended establishment of an infrastructure division within Deutsche Bahn AG that is geared towards the common good, as stated in the draft. On January 1, 2024, DB Netz AG and DB Station und Service AG are to be merged. The income from this new company is to be used for infrastructure.
SPD parliamentary group deputy Detlef Müller criticized: “There is still a lack of clarity about how the ministry wants to set up the financing and decision-making structures of society in such a way that the expansion and repair of the rail network finally gain momentum.”
