Railway-Digitalization will be more expensive than planned
The Bahn is currently facing financial issues and can barely afford the renovation and expansion of the rail infrastructure. The digitalization is also predicted to result in a cost explosion, according to a study. 69 Billion Euros could be required for this - but there is a bright spot.
The plans of Deutsche Bahn for the digitalization of the rail network in Germany are reportedly much more expensive than previously planned. According to a study, 69 Billion Euros will be needed to digitalize the rail infrastructure, reported the "Spiegel". The study was commissioned by the consulting firm McKinsey, the law firm Orth Kluth, and the engineering services provider Emch+Berger for the Federal Transport Ministry.
The costs would more than double. In 2018, the Transport Ministry had planned expenses of 28 Billion Euros. One area that has reportedly seen significant increases is the equipping of trains. The conversion with control technology for an automated operation is predicted to cost 38 Billion Euros, according to the report. Previously, 4 Billion Euros had been assumed.
The report praises the investments for their economic feasibility. The benefits are expected to be worth 102.5 Billion Euros until 2070, according to the report. This is mainly due to the reduction in personnel in the control room area. Currently, around 14,000 train dispatchers work there. Their number is expected to decrease significantly with the investments.
The rail company promises further automation of driving and better networking of infrastructure and vehicles through digitalization. This should also increase the capacity of the existing rail infrastructure. In addition, there should be improvements in reliability and punctuality in the areas concerned.
Currently, outdated technology in control rooms in Germany is hindering national and international rail traffic. Originally, according to "Spiegel", particularly important rail connections were to be equipped with the modern European train control system ETCS by 2030. This will not be achieved before 2036, and the system is only expected to be widely available by 2043. With ETCS, cross-border rail traffic would be significantly simplified.
The study, commissioned by the Federal Transport Ministry and other entities, estimates that German Railways needs 69 Billion Euros for digitalizing the rail infrastructure, significantly increasing the initial 2018 plan of 28 Billion Euros. These substantial investments in digitalization are predicted to yield economic benefits of 102.5 Billion Euros until 2070, as mentioned in the report from the Federal Ministry of Transport.
