Roundup: Germany struggles to finance ailing rail system-Xinhua

Roundup: Germany struggles to finance ailing rail system

Source: Xinhua

Editor: huaxia

2024-07-09 02:40:00

BERLIN, July 8 (Xinhua) -- Germany's transport ministers of the federal states are meeting on Monday to discuss the future of the nationwide public transport ticket.

The Deutschlandticket was introduced in May 2023, and is currently priced at 49 euros (53 U.S. dollars). Federal Transport Minister Volker Wissing described the ticket as a "real game changer," and said the offer was "modern, digital and simple, and the biggest reform of local public transport."

However, long-term funding for the ticket is far from guaranteed. To compensate train operators for lost revenue, Germany's federal and state governments have each subsidized the low-cost ticket with three billion euros annually - but only until 2025.

North Rhine-Westphalia's transport minister Oliver Krischer recently sent an urgent letter demanding that the federal government provide long-promised funds.

"I see a great danger that an unmanageable patchwork of areas in which the Deutschlandticket can be continued, and others in which it must be canceled for financial reasons, will soon emerge," Krischer said in his letter, warning of price increases and a "significant financial burden for more than eleven million passengers."

Although the Deutschlandticket brought passenger numbers back to pre-pandemic levels, it also led to a slump in fare revenues. In addition, sharp rises in energy and personnel costs are causing problems for transport companies.

While Germany's rail system would require more routes, more frequent services, and more modern vehicles to reach its CO2 reduction targets for the transport sector, increasing financial problems are leading to a decline in services.

The dilapidated infrastructure on which the German railway has been running for years has been brought to its limits. According to data by Deutsche Bahn, around three quarters of long-distance trains are affected by at least one set of works.

Deficiencies in the railways have also caused numerous problems for long-distance transport during the ongoing UEFA European Football Championship. Visitors from abroad have shared on social media photos of breakdowns, overcrowded platforms, and delays.

Deutsche Bahn infrastructure director Berthold Huber believes that political decisions are responsible for these problems. "One of the main aims of the railway reform almost 30 years ago was to relieve the federal budget," he said in an interview with Sueddeutsche Zeitung. "That's why the network was geared towards cost efficiency for years."

According to a network status report by railway infrastructure subsidiary InfraGo, Germany's railway system now requires investment of more than 92 billion euros. Level crossings and signal boxes are in particularly bad condition, with many needing to be replaced.

"Too many of our signal boxes are ready for the museum. Politicians must turn the switch and drive forward the digitalization of signal boxes quickly," said Dirk Flege, managing director of the Pro Rail Alliance. (1 euro = 1.08 U.S. dollar)