ham Deutsche Bahn (DB) employees are resisting new requirements to separate the rail network from state-owned company operations. Jens Schwarz, head of the group’s works council, warned in Hamm on Wednesday: “If the consolidated group is broken up, this will hinder rather than improve rail operations.”
The railway supervisory board said the weakness in rail transport was insufficient funding of infrastructure rather than group structure.
Parts of the trucking business, in particular, would be jeopardized by the breakup into a public-interest-oriented infrastructure company and a transportation company more vulnerable to competition, employees said. Jörg Hensel, chairman of the European Works Council, said so-called bicycle transport was currently unprofitable. In 2022, DB Cargo will have an operating loss of 665 million euros.
However, single-vehicle transport provided almost entirely by rail is an important part of the climate and the economy, explains Hensel: “Under the current general conditions, the economic functioning of the whole of Europe is only possible with public funding. “If it had to operate on its own, thousands of jobs in Germany and Europe would be at risk because transport services would have to close on a large scale.
The law does not allow a political strike over the breakup plan. “Otherwise we will do everything possible and necessary to deal with the situation,” Hensel said.
“Under the current framework conditions, the economic operation of bicycle transport across Europe is only possible with the support of public funds”,
(Photo: Deutsche Bahn)
With its statement, the group union responded to calls for the dissolution of Deutsche Bahn, which have grown louder for months. The reason was massive delays and train cancellations by state-owned companies, which also jeopardized the traffic turnaround announced by the federal government.
Monopoly Commission calls for railways to be separated from rail operations
In 2022, long-haul on-time performance fell to a negative record of 65%, and plans to double passenger numbers by 2030 were hardly talked about. The promised German cycle has been pushed back to 2070. In addition, according to the “Business Daily” report, according to the draft budget for 2024, the railway will spend significantly less money on the transformation of the railway network than planned.
On Tuesday, the federal government’s advisory body, the Monopoly Commission, said in its new departmental report that it supported the transfer of the track network, including stations, to an “independent, public interest-oriented rail transport infrastructure company”. Organizationally and economically, it had to be largely separated from Deutsche Bahn.
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“This will be the highest railway for ambitious reforms,” demanded Jürgen Kühling, chairman of the commission. For example, a network owner independent of a railroad company could link regular train route charges for use of tracks and stations to factors such as punctuality. This can boost competition and benefit travelers.
DB Netz and DB Station & Service, which have been responsible for the rail network and stations until now, will in any case be merged under the Traffic Light Alliance’s plan to form the “InfraGo” infrastructure division for mutual interests. The planned date is January 1, 2024, but not completely out of the DB Group.
Workers believe some shipments would be at risk if separated.
(Photo: IMAGO/Arnulf Hertrich)
On the other hand, the coalition parliamentary group in the Bundestag proposed in a “reform document” presented in mid-April that the rail network, train stations and energy sector be separated from the group. MPs look to the Federal Highway Company Limited, established in 2018, as a model. According to the plan of Ulrich Lange, a transportation expert at Colorado State University, Deutsche Bahn will keep only the rolling divisions of local traffic, long-distance traffic and freight.
Reformers also have support from the Federal Audit Office. “DB AG is developing into a bottomless pit,” says its latest report. Authorities criticized the group’s debt, which has risen by 5 million euros a day since 2016, despite growing federal government support for the company. At the same time, net financial debt of more than 30 billion euros increasingly limits room for maneuver.
In the foreseeable future, Deutsche Bahn will not be able to meet the target set by the federal government in 2020 to achieve a planned share of 25 percent of total freight by 2030 – currently remaining almost unchanged at 19 percent. “So far, the federal government has not fundamentally questioned the integrated group structure of DB AG,” criticized the Federal Court of Auditors. “He accepts barriers to his influence and competition.”
Spain as an example of deterrence
Consolidated balance sheets appear to confirm long-standing competitive distortions. The DB Fernverkehr, DB Regio and DB Cargo transport companies lost a total of 735 million euros last year.
On the other hand, the infrastructure subsidiary responsible for rail, stations and energy reported an operating profit of 733 million euros. However, at least on the regional and freight side, about half of their funding comes from fees from private competitors.
Therefore, the Railway Bureau also strongly opposes the spin-off intention. Chief executive Richard Lutz recently spoke to reporters about “moths to a flame.” Countries such as Austria and Switzerland, considered role models across Europe for their punctuality and quality, still rely on integrated rail groups.
On the other hand, in Spain, where the government separated rail operator Renfe from rail network operator Adif in 2005, there are now glaring problems. In Madrid, the transport minister resigned in February after trains ordered by RENFE could not pass because of the width of the tunnel.
“International comparisons show,” explains Schwartz, chairman of the group’s working council, “that a breakup of an integrated group does not automatically lead to a more stable infrastructure, more punctuality or greater competition.”
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