Railway relocation process commences
Deutsche Bahn, Germany's state-owned railway company, is set to undergo significant changes, with a new strategy and a leadership change on the horizon.
The new strategy, set to be unveiled by Federal Transport Minister Patrick Schnieder on September 22, focuses on structural reforms and significant investments in infrastructure. The aim is to improve punctuality, operational profitability, digitalization, and the green transformation, with the goal of achieving CO2-neutrality by 2040.
This strategy includes prioritizing maintenance over new construction, upgrading high-performance corridors like the Hamburg–Berlin route, and continuing the S3 restructuring program to return to the "Strong Rail" growth path. The government is providing massive funding support, including a special infrastructure fund to fight climate change and realize a shift of traffic from road to rail. The goal is to raise train punctuality to over 80% and make rail transport more efficient and climate-friendly.
Regarding leadership, Richard Lutz, who has been leading Deutsche Bahn since the beginning of 2017, will be replaced. Schnieder stated that Lutz is not the right person to handle the company's profound crisis. Potential successors mentioned include Evelyn Palla, a railway regional transport officer, among other yet unspecified candidates. The minister expressed confidence that there are enough interested candidates to choose the best fit for this challenging role.
The situation at Deutsche Bahn has been described as dramatic, with low customer satisfaction, poor punctuality, and unprofitability. Economically, the railway has been in a precarious position, posting losses for years. The dilapidated and poorly maintained infrastructure has been the main cause of significant problems, with punctuality in long-distance traffic dropping from 78.5 percent in 2017 to 62.5 percent last year, and no signs of substantial improvements yet.
Green politician Matthias Gastel criticized the departure of Bahn CEO Lutz, stating that stronger control and management by the federal government, along with more funding, is needed. However, critics of Lutz hope for a chance to change the course of the Bahn fundamentally.
The new federal government aims to restructure the supervisory board and the railway board, incorporating more specialist expertise and achieving a streamlining. The railway has initiated a comprehensive renovation program to address dilapidated infrastructure, operational conditions, and economic difficulties.
In summary, Deutsche Bahn is set to undergo significant changes. The new strategy focuses on structural reforms and significant investments in infrastructure aimed at improving punctuality, operational profitability, digitalization, and the green transformation to achieve CO2-neutrality by 2040. Potential successors to Richard Lutz are under consideration, with a final decision alongside the new strategy expected by late September 2025. The old strategy and the new strategy for the Bahn may not align perfectly, according to critics. A search for Lutz's successor and a new board chairman for the railway company Deutsche Bahn has begun.
- The new strategy for Deutsche Bahn, which includes structural reforms and substantial investments in infrastructure, falls under the domain of policy-and-legislation, as it is being overseen by the Federal Transport Minister Patrick Schnieder.
- The ongoing leadership change at Deutsche Bahn, with the departure of Richard Lutz, is a significant political issue, as the company's future direction will be shaped by the chosen successor, potentially including Evelyn Palla and other candidates, in the context of the broader general-news backdrop of the company's performance and plans for growth and transformation.
