Billion gap in the railway budget
EVG fears new ICE orders
February 10, 2024, 4:31 a.m
The all-round modernization of the railway has been in jeopardy since the Federal Constitutional Court’s ruling. EVG boss Burkert fears that the red pen could also affect new orders from ICE. However, there is also hope for better punctuality.
Because Deutsche Bahn receives significantly less money from the federal budget than originally planned, the company’s board of directors is looking for savings options. “With the savings efforts, further ICE orders may also be up for grabs,” said Martin Burkert, deputy chairman of the supervisory board at the railway and also head of the railway and transport union EVG. Bahn boss Richard Lutz is looking for savings potential in all areas of the group. The resulting list should be presented to the railway supervisory board at the end of March, said Burkert.
In recent months, the railway has rejuvenated its fleet with numerous new ICEs from the ICE 4 and ICE 3neo series. By 2030, the average age of the ICE fleet is expected to fall from the current 18 to 12 years. There is great hope in the group that a younger fleet will also contribute to fewer disruptions and therefore more punctuality. By the end of the decade, more than 450 ICE trains from the federally owned company are expected to be on the network – significantly more than currently. In addition, the development of a new express train was put out to tender that can achieve high speeds of 280 to 300 kilometers per hour and at the same time offers level entry at the level of the platform, i.e. without steps.
In construction projects, renovation takes precedence over new construction
When it comes to construction projects, the group has already started to check the timing of the projects. A list from the new infrastructure company DB InfraGo that became known a week ago shows that the renovation of the existing network is preferred to expansion.
“I think the construction projects for 2024 and 2025 are largely secured. It will be more difficult for the projects for 2026 and the following years,” said EVG boss Burkert. Politicians must now consider “whether we can let things continue like this with the savings and the projects that may be canceled.” In principle, it is correct to say now which projects will be implemented and which will not. “It must be clear to everyone what may be lost under certain circumstances,” said Burkert.
As a result of a ruling by the Federal Constitutional Court, the federal government had to plug billions in holes in the 2024 budget and in the climate and transformation fund. The railway was originally promised up to 45 billion euros to make the infrastructure fit in the coming years. A good third of them are not yet secured.
Railway and Ministry: Projects will not be canceled
According to DB InfraGo’s prioritization list, for example, 773 million euros are currently not available for a new freight transport corridor from Uelzen to Halle. The traffic light coalition originally set itself the goal of shifting significantly more goods to rail. According to the letter, around 16 million euros for the digitalization of the S-Bahn in Hamburg are also not available. According to plans, a digital signal box should increase the capacity of the S-Bahn in the future. The relocation of the Fangschleuse train station in Brandenburg is also low on the priority list. The project should help to better connect the Tesla factory in Grünheide to freight traffic.
The railways and the Federal Ministry of Transport recently emphasized that these projects have not been canceled. That is not planned either. Planning will continue for all projects in order to avoid delays until financing has been fully clarified, the railway said. Without more money, the implementation of these projects is likely to be significantly delayed.
Meanwhile, EVG boss Burkert warned that the proceeds from a possible sale of the logistics subsidiary Schenker would be invested in the infrastructure. “The money that will be raised from the possible sale of Schenker must be put entirely into debt reduction,” said Burkert. “Otherwise there is a risk that the railway’s credit ratings will drop as a result of the sale. And then there is a risk of higher interest rates.” In this case, one rating point corresponds to several hundred million euros in interest. The railway wants to sell Schenker. A bidding process was initiated last year.