Wishing advocates for maintaining stability in rail fare increases.
German Transport Minister Volker Wissing aiming to curb proposed hefty track usage fee hikes by DB's network subsidiary. The minister plans to decrease the interest rate on DB Infrago's equity capital, the company responsible for the railway network, from the current 5.9% to approximately 2%.
DB Infrago announced on Monday night that it would raise track usage fees by an average of nearly 20% starting from 2026. This could lead to significant price increases for various rail services, including IC and ICE trains, as well as freight transportation.
The reason for this price hike is a 4.5 billion euro capital increase that DB Infrago is set to receive instead of subsidies, under the terms of the budget agreement. However, this capital is interest-bearing, at a rate of 5.9%. To generate this interest, the track fees would also need to rise accordingly. According to DB Infrago, this would bring in an additional 1.2 billion euros through the so-called rail toll.
However, if the interest rate is reduced to about 2%, as suggested by the minister, DB Infrago could face a shortfall of around 800 million euros. The ministry recognizes this challenge and has stated, "The ministry will swiftly present a clear plan on how we can ensure the future-proof financing of rail infrastructure in Germany, working together with the industry and the federal states."
Track usage fees are seen as a crucial factor affecting the railway's competitiveness compared to road transportation by trucks. The government's goal is to divert more traffic towards railways.
DB's network subsidiary, German Railways' DB Infrago, proposed an increase in track usage fees, which could be attributed to the 4.5 billion euro interest-bearing capital they are set to receive instead of subsidies. However, German Transport Minister Volker Wissing aims to decrease the interest rate on DB Infrago's equity capital from 5.9% to 2%, potentially causing a 800 million euro shortfall for DB Infrago.
