Future of Deutsche Bahn: Who will solve the challenges of chaos?

Future of Deutsche Bahn: Who will solve the challenges of chaos?

Richard Lutz has to vacate his position as railway manager at Deutsche Bahn, which represents a significant change for the company. The move comes against the backdrop of serious problems plaguing the railway, such as unpunctual trains, a dilapidated rail network and ongoing financial losses. It is currently unclear who will succeed Lutz. Potential candidates include Evelyn Palla, head of DB Regio, as well as Jörg Kukies, former finance minister, and Michael Peter, head of Siemens Mobility.

The future railway boss faces enormous challenges. In long-distance transport, less than two thirds of stops are currently reached on time. Federal Transport Minister Patrick Schnieder is also planning a new rail strategy, which is to be presented on September 22nd. Schnieder calls for a railway that is punctual, safe, clean, faster, leaner and more economical.

Infrastructure problems

A big problem for Deutsche Bahn is infrastructure issues. Around 40 heavily used routes are to be completely renovated by 2036. This means extensive modernization, which will be accompanied by full closures and will therefore result in stress for passengers for months. The development of infrastructure depends heavily on political support and sufficient financial resources. There is currently a significant investment backlog in the double-digit billion range. The focus is particularly on renovating the existing network, while new construction and expansion projects suffer due to a lack of financial resources.

The economic situation of the railway company is also alarming. Deutsche Bahn has been in the red for years. An ongoing restructuring program provides for savings and an increase in profitability. The subsidiary DB Cargo in particular must be in the black by next year, but is facing considerable challenges, particularly in single-car transport. In addition, there are upcoming collective bargaining negotiations with the GDL, as the current collective agreement expires at the turn of the year. It remains unclear whether the new GDL boss Mario Reiß will pursue a confrontational strategy, which could have possible effects on the new railway boss if strikes and train cancellations occur.

Changes and uncertainties

With the impending change at the top of Deutsche Bahn, the company is at a critical turning point. The new railway boss will not only have to develop technical and economic strategies, but also have the ability to assert himself in a dynamic political and business environment. At the political level, the ministry's new strategy, which is scheduled for September, could provide decisive impetus."