Rail freight pricing increase in Germany threatens industry competitiveness

The rail freight pricing increase in Germany threatens the competitiveness of the railway sector. Industry experts predict that the 16% hike planned for 2025 could shift cargo to road transport, this is reported by the railway transport news portal Railway Supply.[1]

Rail freight pricing increase Germany

Experts and the Association of Private Wagon Owners (VPI) fear that if rail freight prices continue to rise, the entire German rail sector will struggle. In 2026, further increases are expected, which will likely cause a shift from rail to road freight. This poses a threat to the competitiveness of rail transport.

Innovative Train Seats at InnoTrans 2024: Redefining Comfort and Safety[2] The current rail freight prices already account for up to 40% of the operating costs for rail companies, according to the Association of German Transport Companies (VDV). The new increase could cause rail companies to lose their market position because their costs would be much higher than road freight alternatives.

This shift would have a negative impact on Germany’s environmental goals, which aim to reduce CO2 emissions by promoting rail transport over trucks. Private wagon owners and service workshops might face a significant drop in demand if the rail sector cannot compete. Reduced use of rail wagons would mean fewer investments in maintenance and upgrades, slowing down growth and innovation across the sector.

Any delays in modernization plans would make the rail sector even less competitive. The main reason for this rail freight pricing increase in Germany is tied to the federal government’s decision to increase Deutsche Bahn’s capital by EUR10.5 billion in 2025. This capital increase requires higher track usage fees, leading to increased operating costs for all rail companies using the German rail network.

VPI and other industry stakeholders are calling on the government to intervene immediately to prevent these harmful price hikes. They demand the government allocate an additional EUR350 million in subsidies for rail infrastructure in the 2025 budget to ease the burden on the rail sector. Furthermore, they are pushing for a reform of the pricing system for track usage to prevent DB InfraGo from prioritizing profits at the expense of rail transport.

If no action is taken, the rail freight pricing increase in Germany will cause long-term damage to the competitiveness and sustainability of the sector. High track costs will make rail transport less attractive compared to road freight, which undermines Germany’s climate goals and hinders the most eco-friendly freight transport option. Rail industry associations stress the importance of government collaboration to reform the pricing system and safeguard the future of rail transport in Germany.

Without such reforms, the rail freight sector could face a significant downturn. News on railway transport[3], industry, and railway technologies from Railway Supply that you might have missed: Innovative Metro Trains for Ahmedabad’s Metro System[4]

Find the latest news of the railway industry in Eastern Europe, the former Soviet Union and the rest of the world on our page on Facebook[5], Twitter[6], LinkedIn[7], read Railway Supply magazine online[8].

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Detailed information is in Railway Supply media kit[9]

References

  1. ^ Railway Supply. (www.railway.supply)
  2. ^ Innovative Train Seats at InnoTrans 2024: Redefining Comfort and Safety (www.railway.supply)
  3. ^ News on railway transport (www.railway.supply)
  4. ^ Innovative Metro Trains for Ahmedabad’s Metro System (www.railway.supply)
  5. ^ Facebook (www.facebook.com)
  6. ^ Twitter (twitter.com)
  7. ^ LinkedIn (www.linkedin.com)
  8. ^ Railway Supply magazine online (www.railway.supply)
  9. ^ Railway Supply media kit (www.railway.supply)