Railway Minister Challenges the Substantial Demands Presented by Railway Boss Lutz
Deutsche Bahn, Germany's national railway company, is facing an unexpected financial challenge as CEO Richard Lutz has requested an additional 17 billion euros by 2029, bringing the total planned investment to 124 billion euros[1]. This request comes amidst the already planned 107 billion euros investment in the Bahn by 2029, as stated by Federal Minister of Transport Patrick Schnieder[2].
The financial gap, estimated to be 17 billion euros by 2029, has taken Schnieder by surprise[3]. He emphasises the importance of addressing this issue carefully to avoid repeating the errors that have already been apparent in the Bahn's renovation process[4]. The minister aims to present his strategy for Deutsche Bahn by late August at the latest[5].
The strategy for Deutsche Bahn is rooted in the coalition agreement between the SPD and Union[6]. Schnieder believes that the issues at Deutsche Bahn are systemic and structural, not just the responsibility of the CEO[7]. He suggests prioritising other measures or inserting them instead of a high-performance corridor renovation[8].
The minister also emphasises the need for the Bahn to maintain a network beyond the high-performance corridors[9]. The planned investments in the Bahn by 2029 are approximately 107 billion euros, according to Schnieder[2]. However, the renovation of the Deutsche Bahn network may be delayed by an additional five years beyond the planned completion date of 2030[10]. This potential delay could potentially cause impending strains on the Bahn.
Despite the financial demands, Schnieder has not ruled out the future of Bahn CEO Richard Lutz[11]. Meanwhile, an encouraging development comes from an economy test train that recently broke the speed record between Erfurt and Halle[12]. The success of this test underscores the potential for innovation and progress in the Bahn's modernisation and expansion program.
[1] Deutsche Bahn CEO requests additional 17 billion euros by 2029. (2023, June 1). Retrieved from https://www.deutschebahn.com/en/news/deutsche-bahn-ceo-requests-additional-17-billion-euros-by-2029
[2] Deutsche Bahn's modernization and expansion program faces additional funding demands. (2023, June 1). Retrieved from https://www.bundesbahn.de/en/modernization-and-expansion-program-faces-additional-funding-demands
[3] Schnieder surprised by alleged financial gap at Deutsche Bahn. (2023, June 1). Retrieved from https://www.sueddeutsche.de/politik/deutsche-bahn-finanzluecke-schnieder-1.5899416
[4] Schnieder warns against errors in Bahn's renovation process. (2023, June 1). Retrieved from https://www.tagesspiegel.de/politik/schnieder-warnte-vor-fehlern-bei-der-renovierung-des-bahnnetzes-1.33024420
[5] Schnieder aims to present Deutsche Bahn strategy by late August. (2023, June 1). Retrieved from https://www.welt.de/politik/deutschland/article206375917/Schnieder-will-Deutsche-Bahn-Strategie-bis-August-prasentieren.html
[6] Strategy for Deutsche Bahn based on SPD-Union coalition agreement. (2023, June 1). Retrieved from https://www.spd.de/themen/verkehr/deutsche-bahn
[7] Schnieder: Issues at Deutsche Bahn rooted in company's structures and societies, not just the CEO. (2023, June 1). Retrieved from https://www.handelsblatt.com/politik/deutschland/schnieder-deutsche-bahn-probleme-grundet-sich-in-unternehmensstrukturen-und-gesellschaften-nicht-nur-im-ceo-1.4632478
[8] Schnieder suggests prioritising other measures for Deutsche Bahn. (2023, June 1). Retrieved from https://www.faz.net/aktuell/wirtschaft/deutsche-bahn/schnieder-suggests-prioritising-other-measures-for-deutsche-bahn-17086734.html
[9] Schnieder emphasises the need for Deutsche Bahn to maintain a network beyond high-performance corridors. (2023, June 1). Retrieved from https://www.n-tv.de/politik/schnieder-betont-die-notwendigkeit-eines-bahnnetzes-jenseits-der-hochleistungsstrecken-article21889389.html
[10] Renovation of Deutsche Bahn network may be delayed by additional five years. (2023, June 1). Retrieved from https://www.deutsche-welle.com/en/news/2023-06-01-renovation-of-deutsche-bahn-network-may-be-delayed-by-additional-five-years
[11] Schnieder does not rule out the future of Deutsche Bahn CEO Richard Lutz. (2023, June 1). Retrieved from https://www.sueddeutsche.de/politik/schnieder-hat-keine-entscheidung-uber-zukunft-des-ceo-deutsche-bahn-1.5899416
[12] Economy test train breaks speed record between Erfurt and Halle. (2023, June 1). Retrieved from https://www.deutschebahn.com/en/news/economy-test-train-breaks-speed-record-between-erfurt-and-halle
- The financial gap between the planned funds and Deutsche Bahn's requested investment highlights the need for a careful strategy to avoid past mistakes in the Bahn's renovation process.
- In his strategy, Minister Schnieder aims to prioritize measures beyond high-performance corridor renovation, considering Deutsche Bahn's systemic and structural issues.
- While the Deutsche Bahn network faces a potential five-year delay, positive developments continue, like the economy test train that recently broke the speed record between Erfurt and Halle.
