Wishing to lessen the escalating railway tariff hikes.
The subsidiary of DB's network division announces a substantial rise in track utilization costs. This move is due to the federal government's capital boost, necessitating interest payments. However, Minister of Transport, Volker Wissing, aims to challenge this.
Wissing intends to curtail the prospective significant hikes in railway track usage fees. To achieve this, the ministry spokesperson explained, the mandatory interest rate on DB Infrago's capital, the railway network subsidiary, will see a significant decrease. Instead of 5.9%, it's expected to be around 2% in the future.
DB Infrago shared on Monday night that an approximately 20% increase in track usage fees would be necessitated from 2026. This could cause substantial fee hikes for both train passengers and freight customers.
The reason for this increase is the budget agreement's provision for DB Infrago to receive an extra 4.5 billion euros in capital instead of subsidies. However, this capital must accrue interest, with a suggested interest rate of 5.9%. To generate this interest, track fees must also increase proportionately. According to their own statements, DB Infrago would gain an additional 1.2 billion euros through the rail toll system.
However, if the federal government lowered the interest rate to approximately 2%, there would be a loss of around 800 million euros in revenue on the contrary side. The ministry recognizes the predicament: "The ministry will soon release a clear timeline on how, in collaboration with the industry and the federal states, we can ensure the future-proof financing mechanism of German rail infrastructure," a spokesperson said.
Track fees are perceived as a crucial factor in the competition between rail transport and road transport via trucks by the government. The declared goal is to divert more traffic towards rails.
Wissing's aim to challenge the significant hikes in railway track usage fees directly relates to German Railways, as DB Infrago, a subsidiary of German Railways' network division, announced a potential 20% increase from 2026.
In an effort to mitigate the impact of the proposed track usage fee increase on passengers and freight customers, the ministry aims to lower the mandatory interest rate on DB Infrago's capital, which is currently set at 5.9%, to around 2%.
