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July 29, 2019

Germany to invest €86bn for railway infrastructure maintenance

The German Government and national railway company Deutsche Bahn have agreed to invest approximately €86bn in rail network maintenance over the next ten years.

The German Government and national railway company Deutsche Bahn have agreed to invest approximately €86bn in rail network maintenance over the next ten years.

Most of the investment will be provided by the government.

The latest agreement will replace the existing five-year plan, which contributed around €5.6bn annually for railway maintenance.

The new agreement increases the annual investment significantly to an average of €7.9bn per year from 2020 to 2024. The investment is expected to further increase to around €9.2bn per year from 2025 to 2029.

The overall funding will be utilised for the rehabilitation of the existing network, including overhauling tracks, signals and railway stations.

Additionally, around 2,000 bridges will be renovated over the next ten years.

The rehabilitation programme aims to reduce delays, disruptions and improve punctuality.

The government also plans to double the number of passengers by 2030.

Last week, Deutsche Bahn, while announcing its half-yearly performance report, reiterated its commitment to focus on growth and service quality.

In the first half of 2019, the company’s adjusted earnings before interest and taxes were €757m, compared to €974m in the first half of last year.

The 22% drop in revenue was primarily attributed to investments in improving quality and performance.

Recently, the German railway company resumed the procurement of ICE 4 trains from Siemens and Bombardier. Deutsche Bahn suspended the procurement process in April over quality issues.

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