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Germany Struggles to Close the Rail Infrastructure Gap, Deutsche Bahn Invests a Record EUR 17 Billion

Germany Struggles to Close the Rail Infrastructure Gap, Deutsche Bahn Invests a Record EUR 17 Billion
photo: Jens Cederskjold / Flickr/Under the dome of Sony Center with a view to Deutsche Bahns Konzernzentrale - Potsdamer Platz - Berlin
14 / 01 / 2025

Germany’s rail giant Deutsche Bahn (DB) is breaking records with a EUR 17 billion investment in its infrastructure for 2024. But will it be enough to close the gap with neighboring countries like Switzerland and Austria?

Deutsche Bahn has hit a milestone with its EUR 17 billion investment in rail infrastructure in 2024, a significant increase from the average of EUR 10 billion annually in previous years. Philipp Nagl, CEO of DB InfraGo, mentioned this achievement: "For the first time, we’ve stopped falling behind in terms of aging infrastructure and reached a turning point." He added that maintaining this level of investment over the next two to three years will reduce infrastructure failures and improve rail service quality across Germany's extensive network.

However, political uncertainty casts a shadow over 2025’s funding. The federal government collapsed at the end of 2024, leaving the budget for the coming year unresolved. This raises questions about whether Deutsche Bahn will receive sufficient support to sustain its ambitious modernization efforts.

Lagging Behind European Neighbors

Despite the record-breaking figures, Germany still trails behind countries like Luxembourg, Switzerland, and Austria, which invest three to four times more per capita in their rail networks, according to the advocacy group Allianz pro Schiene (Alliance for Rail). The disparity points out the need for sustained commitment to catch up with Europe's leaders in rail infrastructure.

Deutsche Bahn's 2024 Achievements

In 2024, Deutsche Bahn made significant strides in improving its infrastructure, including:

  • 1,851 railway switches replaced
  • 1,940 kilometers of new tracks laid
  • Construction work at 872 stations, including complete modernizations at 113 stations, bringing them up to the latest standards.

DB InfraGo and the Future of German Railways

DB InfraGo, a subsidiary of Deutsche Bahn, was established at the beginning of 2024 with a clear mission: not to generate profit but to pursue both economic and public interest objectives.

The investment overview by DB InfraGo was accompanied by a statement from the Deutsche Bahn supervisory board, expressing a desire for the creation of a German rail infrastructure fund with a proposed capital of EUR 150 billion. Werner Gatzer, Chairman of the Deutsche Bahn Supervisory Board, noted that such a fund is critical for the long-term financing of Germany's ailing railway network.

"The railway has problems—it must improve. The infrastructure is too old, too congested, and too prone to failures," Gatzer told Focus magazine. "I believe that EUR 150 billion over the next ten years is the absolute minimum needed for infrastructure investments."

Private Investment Possibilities

The proposal aligns with earlier plans by German Transport Minister Volker Wissing, who suggested that such a fund could also be opened to private investors. However, the specifics of the fund’s structure and operation remain unclear. Despite Wissing retaining his position after the government coalition collapsed in November 2024 and his departure from the FDP, no progress has been made in preparing the fund, which RAILTARGET previously informed about.

Source: DB InfraGO;  www.t-online.de

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