Deutsche Bahn’s restructuring plans: A controversial railway strategy

Bobby Cirus

Deutsche Bahn’s restructuring plans: A controversial railway strategy
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Fewer employees, more punctual trains – that’s how the board wants to make the railroad more viable. Now the board is asking for a more specific plan.

A yellow railroad construction vehicle stands on the rails, and a man in a conspicuous orange suit stands in front of it, looking at the rails with interest.

Renovations are already underway on the Riedbahn section from Mannheim to Frankfurt. Photo: Andreas Arnold/dpa

Berlin Taz | In discussions on the restructuring concept of Deutsche Bahn AG (DB), the company’s supervisory board is demanding more concrete plans. The railway authority wants to return the entire group to profitability within three years and to be more punctual.

“The transformation of infrastructure and operations, as well as the economic recovery of the company, are clearly formulated objectives to get the group back on track,” said Werner Gatzer, chairman of the supervisory board. However, the board must present “a detailed program” at its next council meeting in December, particularly with regard to budget and timelines.

Two weeks ago, the Federal Minister of Transport (FDP) made it public that DB should develop a restructuring concept. The Railway Commission submitted this concept to the Supervisory Board on Wednesday. It is called “S3” because it is intended to make the group fit into the key areas of operations, infrastructure and profitability within three years.

According to South German newspaper Page 110 says Deutsche Bahn will make €2 billion in profits in 2027. That means 75-80% of its trains will need to be on time (up from 62% in June 2024). Railway boss Richard Lutz plans to cut 10,000-15,000 full-time jobs by 2027 and more than 15,000 more by 2030 to save on labor costs. And: Lutz plans to keep fewer ICEs in reserve to save money here too.

‘S3’ renovation concept faces criticism

Critics warn that the innovation concept can’t work like this. “The fact that Transport Minister Volker Wissing supports the railway management’s plan to cut 30,000 jobs is a devastating signal to the railway staff who still have to keep the business going,” said Bernd Riexinger, transport policy spokesman for the Left in the Bundestag, Taz. Achieving a better railway with fewer employees doesn’t work.

Left-wing politician Bernd Riexinger said the massive job cuts were a devastating signal.

The VCD eco-transport club has made it clear that unless the federal government invests more money in the railways, the restructuring plan will fail. “The federal government must fund the restructuring program. Otherwise we will not be able to achieve the goals we have set for so long,” said Matthias Kurzeck, chairman of the VCD Federal Council. His proposal was for long-term, stable funding in the form of multi-year funds for the railway infrastructure. VCD chairman Kurzeck believes that saving reserve trains is wrong. “It does not increase punctuality, but rather leads to more delays and cancellations.”

There are many points SZ The ‘Strong Rail’ strategy cited in the restructuring concept was already known from the ‘Strong Rail’ strategy, which was the predecessor of ‘S3’ five years ago.. The railways missed their target by a wide margin this year. Nevertheless, Federal Transport Minister Wissing was optimistic on Wednesday that the new concept will work this time. He told ZDF’s “Morgenmagazin” that the DB has enough money available for the next few years. “The railways have everything they need to improve the situation. Additional financial support will be discussed again after 2027.”

Tickets 49, 59 or 64 euros

There was uncertainty on Wednesday over another issue under Wissing’s auspices. It is still unclear how much German tickets will cost from January 2025 and whether they will have to go up. The Bavarian Transport Ministry recently proposed €64, while the Pro Bahn passenger association believes €59 is possible in the medium term. Now the associations are once again insisting that local transport prices should remain stable at €49 per month.

The Burgerbahn initiative says: “Attractive public transport (including a flat-rate ticket for 49 euros) is part of the public service.” These precautions must be funded by public funds, and neither the federal government nor the states can shirk their responsibility. “Making the Deutschlandticket unattractive in terms of price means nothing but slowly pushing out a very successful product like the ticket,” says Heiner Monheim, spokesman for the initiative.

After a long struggle, the federal government and the state transport ministers agreed last spring to secure a price of 49 euros by the end of 2024.

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