Prioritize Public Benefit, Not Profit
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Prioritize Public Benefit, Not Profit

A leading rail advocacy group, Allianz pro Schiene, is urging the German federal government to abandon profit expectations from the rail network as it unveils its new rail strategy. The strategy, expected to be presented this Monday by Federal Transport Minister Patrick Schnieder, aims to redefine the role of the state-owned Deutsche Bahn.

Dirk Flege, Managing Director of Allianz pro Schiene, emphasized that while DB InfraGo formally embraces a public welfare focus, many aspects remain inconsistent with that principle. He specifically cited the government’s expectation of returns on its investment in DB’s equity, requiring the company to pay interest – a condition he believes undermines the intended public benefit.

Flege also called for a comprehensive overhaul of track access charges, which he says are rising rapidly and are insufficiently controlled by the federal government. These increased charges are directly linked to the equity injection requirements. The group argues the new strategy must resolve these fundamental contradictions between a focus on public welfare and the pursuit of profitability. They are advocating for a move away from what they describe as “the old stock market logic” in rail operations.

Following a reform of track access charges, Allianz pro Schiene is calling for a multi-year financing model tied to the Infraplan – a plan detailing and funding infrastructure projects for the coming years. The Infraplan itself has been repeatedly announced but remains incomplete and unadopted.

Allianz pro Schiene hopes the new strategy will not only define the federal government’s ownership approach to Deutsche Bahn, but will serve as a coordinated strategy for the entire rail sector.