- Enhancing Punctuality: Wissing Proposes Railway Restoration Plan
Transport Minister Volker Wissing, from the Federal Ministry, is putting pressure on Deutsche Bahn and is urging the state-owned company to draft a restructuring plan. Wissing highlighted the urgent need to enhance punctuality and train usage in Berlin. He expressed concern over the current poor punctuality and unsatisfactory reliability of the railway system. Major adjustments are required in both the economic and organizational sectors. Wissing emphasized the importance of improving Deutsche Bahn's profitability, pointing out instances of losses, such as those in freight and long-distance traffic.
Wissing: Federal Government has made financial commitments
He mentioned finding Deutsche Bahn in a challenging state when he took office in 2021, with its infrastructure in disarray. Wissing referred to the 2030 renovation concept for particularly stressed tracks - the renovation of the first track, the Riedbahn between Frankfurt and Mannheim, commenced in mid-July and will result in a complete closure until mid-December. The federal government now demands that the management focuses on structurally improving the company.
The federal government has contributed additional funding to Deutsche Bahn and has implemented legal reforms to finance the railway network. A new infrastructure division has also been created. The federal government, as the owner, has made "advance commitments," said Wissing.
Deutsche Bahn must present a plan
Now, Deutsche Bahn is responsible for implementing improvements. Wissing outlined seven areas of focus. The supervisory board of Deutsche Bahn will review and approve the concept during its upcoming meeting. Wissing expects regular reports every three months on whether goals are being met. "We want a restructuring program that extends until 2027 and produces continual improvements," said Wissing. "The notion that it won't succeed is not acceptable. That's my expectation."
For instance, Deutsche Bahn should implement measures to significantly improve punctuality "quickly" during infrastructure renovation. In July, the punctuality rate in long-distance traffic was only 62%. Wissing did not specify an exact rate. Deutsche Bahn is expected to provide concrete figures.
Better utilize trains
A report from the ministry suggests that DB Fernverkehr must maximize its train usage to return to profitable, sustainable operations. Whether this is achieved through attractive pricing for underutilized trains or by securing new business customers lies with the railway board. Wissing opposed the closure of tracks.
Deutsche Bahn must improve its structures
From a financial perspective, the first half of the year was challenging for Deutsche Bahn: After accounting for interest and income taxes, there was a loss of 1.2 billion euros. The company must cut costs, as announced by Chief Financial Officer Levin Holle at the end of July. Approximately 30,000 jobs will be eliminated over the coming years - however, train operations will remain unaffected.
Wissing declined to comment on whether this number is sufficient. That is not the owner's role. The report from the ministry suggests that Deutsche Bahn must eliminate redundant structures and boost its "personal productivity" again. It also recommends scrutinizing investments outside of infrastructure renovation.
Deutsche Bahn needs to incorporate a comprehensive restructuring plan for the railway system, as requested by the Transport Minister Volker Wissing. The federal government, being the owner, has committed additional funds and implemented legal reforms to support this plan.
