Italian Train Operator Demands Guaranteed Rail Capacity Share in Germany
Economy / Finance

Italian Train Operator Demands Guaranteed Rail Capacity Share in Germany

The Italian rail operator Italo is pressuring the German federal government to overhaul how high-speed rail lines are assigned and utilized. A hearing on the matter is scheduled to take place at the Federal Network Agency this Friday, where representatives from Italo, as well as Deutsche Bahn and Flixtrain, are expected to present their positions.

According to a four-page letter reported by “Der Spiegel”, the Italian company is demanding “the guarantee of a fixed minimum percentage of capacities specifically reserved for new market entrants”. Italo does not want to be relegated to “residual capacities”; instead, it is seeking a “stable offering of services at regular intervals”. Furthermore, the new competitor is asking for “service facilities and commercial spaces at stations” such as ticket centers and lounges. The Italian representatives emphasized that they are “not requesting special treatment” but merely seeking “a minimum degree of investment security”.

Italo had recently announced its intention to enter the German market on a large scale. To facilitate this, the company is demanding long-term framework contracts, which are currently not being offered in Germany. Luca Cordero di Montezemolo, the company’s CEO, wants certainty regarding the long-term distribution of network capacities by the end of May. The Italians justify their assertive approach by citing production constraints at Siemens, where Italo plans to place a major order for trains. The group notified “Der Spiegel” that to meet the crucial timeframe at Siemens, they “must sign the final contract by June”.