Deutsche Bahn chief executive Richard Lutz is a man who radiates a general sense of optimism and calm, perhaps a prerequisite for someone in his job. "Deutsche Bahn is experiencing its biggest crisis of the last 30 years," Lutz, head of the state-owned company since 2017, said at the presentation of its 2024 annual report in Berlin. "In key areas, we are a long way from what we set out to do and what our customers expect from us."

In the long history of Germany's national rail operator, it has never been as unpunctual as it was last year. Only 62.5% of long-distance trains arrived without delays of six minutes or more. And even this statistic is inflated, because it does not include canceled trains or trains that terminate their journey prematurely, in other words, the ones that never reach their final destination.

Setting your watch by German trains? Not anymore

Deutsche Bahn has long since taken to adding the qualifier "expected" to its arrival times. In 2024, the company had to pay its customers almost €200 million ($215 million) in compensation for delays and train cancellations, almost €70 million more than in the previous year.

But the delays are not the only problem. In 2023, Deutsche Bahn recorded a loss of €2.7 billion. And while last year the company's balance sheet reported a loss of only €330 million, that was only because the federal government injected €1.8 billion for maintenance measures into it. Overall, Deutsche Bahn is sitting on a debt of €32.6 billion.

Who is responsible for this? The Deutsche Bahn boss? For years, Lutz has been promising a turnaround, and in 2019 he launched the "Strong Rail" strategy, which was intended to "contribute to achieving the climate and transport policy goals" in Germany, as he put it. This remains the goal. "At the same time, we have to acknowledge that we are now a long, long way away from the quality and growth targets we set ourselves back then."

The turnaround has been derailed by inflation, the dramatic slump in the number of passengers during the coronavirus pandemic, and, above all, the dilapidated infrastructure.

According to Deutsche Bahn, the operator's infrastructure problems had simply been underestimated, something Lutz referred to as DB's core "weak spot." And this is the root cause of many of the delays. "We cannot ensure stable service on fault-prone and outdated infrastructure."

19th century infrastructure

Germany's railroad era began in 1835 and there are still sections of track, switches, and signal boxes dating back to the 19th century. The network encompasses around 33,500 kilometers of track, parts of which are so heavily worn that disruptions and breakdowns are commonplace.

In 2023, DB invested a record €7.6 billion in repairs, but most of the system is so outdated that the digitally controlled rail technology that will become standard in the future is useless.

New construction is a must. There are already concrete plans to upgrade 40 main lines that are essential for operating the high-volume network. By 2030, this should amount to around 4,200 kilometers of track. The first major route has already been completed: The so-called Riedbahn, a 70-kilometer stretch from Frankfurt am Main to Mannheim.

The costs of this are around €1.5 billion, 15% more than estimated. Rails and track ballast, 152 switches, and 140 kilometers of overhead line had to be torn out and replaced. In addition, the 20 stations on the line were also upgraded, along with the signaling technology and noise protection, necessitating the complete closure of the line for five months.

Passengers will have to be patient

This year, the approximately 280 kilometers between Hamburg and Berlin will also be affected. With 30,000 passengers a day, it is the most frequently used city-to-city direct connection in Germany's long-distance transport network — some 230 regional, long-distance and freight trains use the line every day.

Construction work on this, estimated to cost €2.2 billion, will begin in August, and the line is expected to be closed for nine months. The resulting detour means the journey between Berlin and Hamburg will take an hour longer.

The Deutsche Bahn CEO has high hopes for the mega refurbishment program to be completed by 2030, even if it will only repair the most important high-volume routes. "As Deutsche Bahn, we are doing our homework," said Lutz.

But that alone is not enough. Politicians are also being called upon to set the right parameters: Planning and approval procedures need to be shortened, but the key thing is the money, in other words, as Lutz said, "the long-term, stable financing of infrastructure renovation and the associated planning security."

The CEO said the recent announcement of €500 billion in new infrastructure funding was "a weight off his shoulders." The Christian Democrats (CDU/CSU) and Social Democrats (SPD), currently in talks to form a new coalition government, along with the Greens, recently introduced a massive debt-financed financial package for both defense and infrastructure spending.

Railroad renovation — also for the military

Deutsche Bahn wants to make substantial use of the financial package. A total of €150 billion is needed to restructure, expand, and digitize the rail network, though this is in addition to the more than €50 billion already planned for the renovations underway until 2030.

"The social importance of an efficient infrastructure is immense," emphasized Lutz.

"Its reliability and resilience are indispensable for Germany as a transit country at the heart of Europe, especially in view of the European security situation," he added, alluding to the fact that his company also plays a vital role in the transportation of military equipment throughout Germany. 

This article was originally written in German.

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