German Rail Industry Urges Ministry for Sweeping Reform of Track Fees
Politics

German Rail Industry Urges Ministry for Sweeping Reform of Track Fees

Railway industry representatives are calling for the Federal Transport Minister, Patrick Schnieder (CDU), to urgently reform the current system of track pricing. These prices are paid by companies using the rail network to the Deutsche Bahn subsidiary, DB InfraGo.

According to André Schwämmlein, co-founder and chief of the private train company Flixtrain, the current setup is unsustainable, arguing that operators are allowed to pass on all costs, including profit margins, regardless of the quality of the network. Schwämmlein noted that the decision by the European Court of Justice to overturn the “track price brake” in April now risks substantial fare increases in local transport. He views this ruling as paving the way for the structural changes that the industry has demanded for years.

While the federal government made a reform of track prices part of its coalition agreement, and the Ministry stated that intensive work was underway, Schnieder has plans to implement the reform no sooner than the next timetable change in December.

Despite the stated governmental effort, several associations have publicly criticized the Minister for what they perceive as a lack of reform momentum. They report that the fundamental outline of Schnieder’s plans remains unclear despite repeated pressure, emphasizing that a fundamental overhaul is an immediate priority for the entire rail sector.

Furthermore, criticism is coming from state governments. Michael Pirschel, head of the Länder working group on rail policy, wrote to the Minister’s office at the end of April, criticizing the federal government for currently showing no appetite for dialogue on the core issues of the reform.