Railway Reform: Focusing on the Common Good through Infrastructure Separation

Railway reform planned – separate infrastructure company oriented towards the common good

Federal Transport Minister Volker Wissing is pursuing plans to reform Deutsche Bahn step-by-step. The first proposed measure is to introduce a new infrastructure company designed for the common good on 1 January 2024. DB Netz AG and DB Station und Service AG will be merged, resulting in a joint-stock company under the project name “InfraGo.” This move will enable income generated to be used solely for infrastructure purposes instead of maximizing profits. The ultimate goal is to improve both the rail network and stations and the effective use of funds.

Further plans are also being considered, primarily relating to federal governance and more transparent financing architecture. Funds may be bundled from different sources to create two central financing pots, one focused on renovating the existing network and the other on expansion and new construction. A service and financing agreement with the railways may also be implemented.

The establishment of a new infrastructure division was included in the coalition agreement between the SPD, Greens, and FDP. However, the railway should remain an integrated group without a separation between network and operation. Martin Burkert, chairman of the railway and transport union, has stated that the founding of an “InfraGo” company would be acceptable only if specific points are granted, such as job security and a collective bargaining agreement. A budget of €45bn has been assigned to cover investment requirements until 2027, which are partially financed through the use of pro-rata income from the COâ‚‚ surcharge of the truck toll.

The Pro-Rail Alliance has expressed some concerns over the proposed merger, stating that this move should not merely be about merging two parts of the company. Clear goals for orientation towards the common good and transparent financing streams are essential. In the spring, the Union released a paper calling for a complete separation of the infrastructure area from DB AG, with the rail network formed into a state-owned GmbH providing the federal government more access to rail infrastructure expansion, renovation, and construction. Currently, difficult budget negotiations are underway in the coalition.

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