DB InfraGO’s Planned Rail Toll Hike Sparks Concerns Over German Rail Transport Future

DB InfraGO plans to raise railway tolls by 16%, causing tension among German rail carriers and raising concerns over the country’s decarbonization goals.

This hike comes as a response to reduced federal budget funding due to the economic downturn and budget cuts, leading DB InfraGO to shift some of the financial burden onto rail operators. The increase has raised tensions among industry stakeholders, who are concerned about the impact on rail transport.

Conflict Between DB InfraGO and Rail Carriers

The toll increase has led to a growing conflict between DB InfraGO and rail carriers, who argue that higher fees could undermine Germany’s goal of shifting freight from road to rail. The German Association of Rail Freight Car Owners (VPI) has appealed to Transport Minister Volker Wissing and other political leaders to reconsider the toll hike. Some transport companies are even planning to challenge DB InfraGO’s decision in court, viewing it as a threat to their financial stability and competitiveness.

Regulatory Intervention and Cost Cap

Germany’s Federal Network Agency has intervened by setting a cost cap for infrastructure fees, allowing DB InfraGO to earn a maximum of EUR 7.4 billion in 2026—an increase of 10% from 2025, but EUR 800 million less than DB InfraGO had requested. The cap has been largely welcomed by carriers, who see it as a safeguard against unchecked fee increases. The association Die Güterbahnen called this the first significant move to protect carriers, yet urged legislative changes to regulate infrastructure charges more strictly.

Concerns for Germany’s Decarbonization Goals

Germany’s ambitious decarbonization goals are also at risk due to the toll hike. The increased costs threaten to dissuade the modal shift from road to rail that Germany has championed in Europe, casting uncertainty over the country’s national and international rail services. As Germany navigates these challenges, the rail sector’s future remains uncertain amid competing priorities of infrastructure funding and sustainability goals.

Political Instability and Wissing’s Party Resignation

Germany’s political landscape is increasingly unstable as the governing coalition collapsed last week, driven by internal divisions within the FDP (German Liberal Party) over support for Ukraine, as RAILTARGET previously reported. In response to the crisis, Transport Minister Volker Wissing—an FDP member since 1998—chose to resign from the party. However, Wissing has opted to remain in his ministerial role as a non-party member, continuing to serve under Chancellor Olaf Scholz’s leadership.

„Ich möchte mir selbst treu bleiben“ – Volker @Wissing will Verkehrsminister bleiben und tritt aus der FDP aus. pic.twitter.com/SoEAyG5ZS8

— Bericht aus Berlin (@ARD_BaB) November 7, 2024

DB Cargo’s Future at Risk Amid Financial and Political Uncertainty

DB Cargo, Deutsche Bahn’s rail freight subsidiary, is also facing significant challenges. DB Cargo has struggled with financial losses for years, previously relying on internal subsidies to offset deficits. The European Commission intervened to end these subsidies, citing concerns over fair market competition. To help address rising costs, DB Cargo had hoped to benefit from a new subsidy program authorized by the European Commission, potentially providing up to EUR 320 million annually to support the higher expenses of rail freight over road transport. However, the ongoing instability in Germany’s government causes doubt about whether the federal budget will secure these funds.

Source: DB InfraGO; BMDV; RAILTARGET