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Germany opens rail routes to competition, challenging Deutsche Bahn's dominance
๐Ÿ‡ท๐Ÿ‡ธ Serbia /Economy & Trade

Germany opens rail routes to competition, challenging Deutsche Bahn's dominance

From N1 Serbia · () Serbian

Translated from Serbian, summarized and contextualized by DistantNews.

At a glance

News Sources not specified New plan
  • Germany's rail regulator has approved plans to allow other operators to use intercity train routes, ending Deutsche Bahn's near-monopoly.
  • The decision aims to increase competition and improve services for passengers, potentially opening the market to companies like Italy's Italo.
  • New rules, set to take effect for the 2028 timetable, will limit any single operator to 60-75% of capacity on busy routes, though Deutsche Bahn considers the decision legally questionable.

Germany's rail network is set for significant changes as the Federal Network Agency (Bundesnetzagentur) has approved plans to open up intercity routes to competitors, challenging the long-standing dominance of Deutsche Bahn (DB). The move is expected to usher in an era of greater competition and potentially better services for passengers, with Italian operator Italo reportedly eyeing entry into the German market.

Klaus Mรผller, president of the agency, stated that increased competition could lead to improved passenger services. The decision involves allocating limited capacity on heavily used routes, preventing DB InfraGO, the infrastructure arm of Deutsche Bahn, from exclusively controlling all available slots. On certain routes, a single operator will be restricted to a maximum of 60% to 75% of capacity. This aims to dismantle DB's near-monopolistic hold on the high-speed intercity market, where it currently commands approximately 95% of the business.

Deutsche Bahn has indicated it will thoroughly review the agency's decision, which it views as legally flawed. DB InfraGO claims the agency made procedural and factual errors and that the legal conditions for regulatory intervention are not met. The company also highlighted that previous capacity allocations to competitors have never been legally challenged. The new regulations are scheduled to be implemented for the 2028 timetable, which will be drafted next year.

The agency acknowledges that this decision could bring about "major changes in intercity passenger transport." Italian operator Italo has expressed plans to invest billions of euros and seeks long-term access to the rail network starting in 2028. Several German federal states have voiced concerns, fearing that increased competition might further bolster the most profitable routes between major cities while potentially neglecting less busy lines.

Odluka bi mogla da donese โ€žvelike promene u meฤ‘ugradskom putniฤkom saobraฤ‡ajuโ€œ

โ€” State regulatorsAcknowledging the potential impact of the new rules on intercity travel.
DistantNews Editorial

Originally published by N1 Serbia in Serbian. Translated, summarized, and contextualized by our editorial team with added local perspective. Read our editorial standards.