Lateness, cancelations, deteriorating infrastructure — Germany can no longer pride itself on its railways, and significant funds and considerable time will be required to reverse this trend.

The CEO of Deutsche Bahn, Richard Lutz, exudes an overall atmosphere of positivity and tranquility, which might be essential traits for his role. At the unveiling of the company’s 2024 annual report in Berlin, he stated, “Deutsche Bahn is facing its most significant challenge in three decades.” Since taking charge of the publicly owned firm in 2017, Lutz has acknowledged that they have fallen short in several critical aspects compared to their objectives and customer expectations.

In the long history of Germany’s national rail operator, it has never been as unpunctual as it was last year. Only 62.5% of long-distance trains arrived without
delays of at least six minutes
. And even this statistic is inflated, because it does not include canceled trains or trains that terminate their journey prematurely, in other words, the ones that never reach their final destination.

Trying to set your watch according to German trains? That won’t work anymore.

In 2024, Deutsche Bahn continued to append the term “anticipated” to its scheduled arrival times. The company was forced to
compensate its customers nearly €200 million ($215 million) for delays and canceled trains
, nearly €70 million higher than the amount in the preceding year.

However, the delays are not the sole issue. In 2023, Deutsche Bahn experienced a loss amounting to €2.7 billion. Moreover, although the previous year’s financial statement showed a deficit of just €330 million, this figure was misleading as the federal government provided €1.8 billion for upkeep activities. Altogether, Deutsche Bahn holds debts totaling €32.6 billion.

Who is accountable for this? Is it the head of Deutsche Bahn? Lutz has been in charge for years.
promising a turnaround
In 2019, he introduced the “Strong Rail” initiative aimed at “helping meet the transportation and environmental policy objectives” in Germany, as stated by him. The objective still stands today. However, they must also recognize that “we are considerably far from reaching both the quality standards and expansion targets we established previously.”

The recovery has been hindered by rising inflation, the significant decrease in passenger numbers due to the coronavirus pandemic, and most importantly, the deteriorating infrastructure.

Deutsche Bahn stated that the extent of the operator’s infrastructure issues had been underappreciated, which Lutz identified as DB’s fundamental “Achilles’ heel.” This is the primary reason for numerous delays. “It’s impossible to maintain consistent service with unreliable and obsolete infrastructure,” he added.

19th century infrastructure

The railway age in Germany started in 1835, and some segments of tracks, turnouts, and signaling equipment from the 1800s are still in use today. The rail system covers approximately 33,500 kilometers, with portions being so extensively used that delays and malfunctions frequently occur.

In 2023, DB allocated a record-breaking €7.6 billion for maintenance work; however, much of the infrastructure remains antiquated such that the digital-controlled railway technologies set to be standard in coming years are ineffective.

The development of new infrastructure is imperative. Concrete strategies have been established to enhance approximately 40 critical routes necessary for managing the extensive network operations. This initiative aims to cover roughly 4,200 kilometers of railway by the year 2030. One significant section has already reached completion: known as the Riedbahn, which spans 70 kilometers connecting Frankfurt am Main with Mannheim.

The expenses amount to approximately €1.5 billion, which is about 15% higher than initially projected. This included removing and replacing 152 turnouts, 140 kilometers of overhead lines, as well as rails and track ballast. Furthermore, all 20 stations along the route underwent upgrades, alongside improvements to signaling systems and noise reduction measures, leading to a total shutdown of the line lasting five months.

Travelers will need to show patience.

This year, the roughly 280-kilometer stretch between Hamburg and Berlin will also undergo changes. Serving up to 30,000 travelers daily, this route represents the busiest city-to-city express link within Germany’s intercity rail system; moreover, around 230 regional, long-distance, and cargo trains utilize this track each day.

The construction project, with an estimated cost of €2.2 billion, is set to start in August, and the line will likely remain out of service for around nine months. As a result, travelers can expect their trip from Berlin to Hamburg to add an extra hour due to the required rerouting.

The CEO of Deutsche Bahn is optimistic about the major renovation program set to conclude by 2030, despite it focusing primarily on fixing key high-traffic lines. “We at Deutsche Bahn are tackling our tasks,” stated Lutz.

However, this is insufficient on its own. There is growing pressure on politicians to establish appropriate frameworks: Streamlining planning and approval processes is essential, yet the crucial factor remains funding. As Lutz emphasized, what matters most is securing consistent financial resources over the long term for renovating infrastructure along with ensuring reliable planning conditions.

The CEO stated that the recent declaration of €500 billion in fresh infrastructure investment felt like “a burden lifted” from their shoulders. The Christian Democrats (CDU/CSU) and Social Democrats (SPD), who are presently negotiating to establish a new governing alliance together with the Greens, have recently proposed this plan.
massive debt-financed financial package
For both protection and structural investment expenditures.

Renovation of railways—also for military purposes

Deutsche Bahn aims to extensively utilize the financial support provided. The company requires a sum of €150 billion to overhaul, extend, and digitalize the railway infrastructure. This amount is separate from the over €50 billion already allocated for ongoing renovation projects scheduled up to 2030.

Lutz highlighted that the societal significance of well-functioning infrastructure is enormous.

“Their dependability and toughness are crucial for Germany’s position as a transit hub within Europe’s core, particularly considering the current state of European security,” he noted additionally, hinting at the significant part his firm has in moving military gear across the nation.

The original version of this piece was penned in German.

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Author: Sabine Kinkartz