Overview
Significantly more Government funds for rail
The 2024 Federal budget was approved on February 2, 2024. A total of over € 17 billion is available for the major rail items, which is about € 7 billion more than provided for in the 2023 Government budget and the previous Government financial planning.
First equity increase implemented
In the 2024 Federal budget, the Federal Government has earmarked € 4.37 billion in addition to the funds from the Climate Action Program 2030 to increase the equity of Deutsche Bahn AG (DB AG) for the purpose of upgrading the rail network. The first tranche of the additional equity in the amount of € 3.02 billion was paid out to DB AG at the end of June 2024.
The funds will be used exclusively for infrastructure and were passed on to DB InfraGO AG on the same day to increase equity.
Collective bargaining agreement reached with GDL
Deutsche Bahn Group (DB Group) and the German Train Drivers’ Union (Gewerkschaft Deutscher Lokomotivführer; GDL) have reached a collective bargaining agreement after five months of negotiations. In the first half of 2024, the GDL took strike action on 13 days.
DB InfraGO commences operations
DB InfraGO has been bundling DB Group’s activities in the areas of track infrastructure and passenger stations since the turn of the year. The launch of DB InfraGO also marked the start of a comprehensive renovation and modernization program for the rail network and stations. The focus is on the existing network: over 2,000 km of track, 2,000 switches, 150 bridges and 1,000 stations are being modernized. This will make the existing infrastructure more robust and efficient and create more capacity in the rail network.
Arriva sale finalized
DB AG finalized the sale of Arriva Group to I Squared Capital, a leading independent global infrastructure investor, on May 31, 2024. The transaction was initiated with the signing of the purchase agreement in October 2023 and has since met the usual closing conditions and received final approval from the relevant regulatory authorities.
DB Schenker sale process continues
The process for a potential sale of up to 100% of the shares in DB Schenker was continued as planned in the first half of 2024. The outcome remains open. According to the Supervisory Board’s resolution, proceeds from a potential sale of DB Schenker should remain entirely within DB Group, and contribute to a significant reduction in DB Group’s debt. A sale will only take place if it is economically advantageous for DB Group.
General rehearsal for first general modernization
At the beginning of January 2024, DB InfraGO tested the concept of the planned five-month general modernization of the 70-km-long Riedbahn between Frankfurt am Main and Mannheim, that began on July 15, 2024. In long-distance and regional transport, DB Group has reorganized the services between the Rhine-Main and Rhine-Neckar metropolitan areas together with the responsible contracting organizations. Freight transport also ran smoothly and on time via the detour routes. In regional transport, 150 replacement buses took up to 16,000 passengers to their destinations every day.
ICE 4 fleet delivered in full
With the delivery of the 137th train, the ICE 4 fleet is now complete. Since 2016, the manufacturer Siemens Mobility has delivered three different train variants – a total of over 1,500 cars with about 105,000 seats. In addition to the 37 7-car trains, 50 12-car trains and 50 13-car XXL ICE trains are in operation. The latter offers almost 1,000 seats.
The DB Cargo transformation has begun
DB Cargo is undergoing a comprehensive transformation to sustainably improve its economic situation. At the heart of this is the simplification of production in order to make transport services more robust and resilient and to realize significant improvements in profitability.
Flood aid for employees
DB Group, the Group Works Council, the Railway and Transport Workers Union (Eisenbahn- und Verkehrsgewerkschaft; EVG) and the BSW&EWH Foundation Family have extended the relief campaign for DB employees in the areas affected by storms in southern Germany.