Germany To Make More Investments For Deutsche Bahn Rail Network


Today, Bild, a mass-selling newspaper reported that the government of Germany is planning to inject approximately 50 billion euros (£42.80 billion) into a modernization program to upgrade the national rail network over the next decade.

Deutsche Bahn, a State-owned rail operator, is under pressure to introduce some improvement to its services and reduce train delays that have since become an irritation for the commuters.

The firm is also challenged with financial strain. It has a debt mountain amounting to 20 billion euros and its financing deficit is anticipated to hit 5 billion euros by 2023.

Deutsche Bahn has a deficit amounting to 1.2 billion euros per year in costs for maintaining the rail network and Bild said that the finance ministry is planning to boost the maintenance funds to 4.6 billion euros beginning next year from the current 3.5 billion.

In an unsourced report, Bild said that the amount should increase to 5.6 billion euros per year between the period of 2025 and 2029.

A spokesperson for Deutsche Bahn said that he could not immediately comment regarding the report as the negotiations with the government were still ongoing. However, he said that extending the rail plan from five to 10 years “would be beneficial for us.”

He added: “We would gain additional planning security, could coordinate our construction activities even better and further reduce the associated impact on rail traffic.”

On the other hand, the Finance Ministry of Germany could not be reached for comment.

The paper said that the Bundestag, the parliament of Germany, would still have to approve the additional investment.

Last week, people who are familiar with the financial results of Deutsche Bahn disclosed that the net profit of the company dropped by one third to 540 million euros last year.

The proposals for new funding have been prompted by safety concerns around the ageing rail infrastructure and the complaints regarding the lateness of the train services of the DB.

Last month, the firm launched a yearlong modernization project that is worth around €10.7 billion.