Market Trends of Germany Rail Freight Transport Industry
This section covers the major market trends shaping the Germany Rail Freight Transport Market according to our research experts:
Rising investment in infrastructure, digitalization and modal shift
- Eight railroad associations made their top requests known to the incoming federal government. Three billion euros per year for infrastructure, complete digitalization of the railroads by 2035, and a minimum of two-thirds of infrastructure expenditures in the rail network to hasten the modal shift. The eight railway industry associations recognise that the current government coalition has already increased the financial resources for the rail sector.
- However, the Allianz pro Schiene (Alliance for Rail), the umbrella organisation for transport authorities for local rail passenger transport BAG SPNV, the alliance for fair competition in passenger rail Mofair, the Network of European railways (NEE), the Mobility Association Germany (VCD), Verband der Bahnindustrie, the Association of German Transport Companies (VDV) and the Association for Freight Wagon owners (VPI) call for the future federal government to increase the pace and give rail priority.
- Through digitalization, rail infrastructure and operations are both becoming more dependable and efficient. Four points are highlighted by the German rail organisations to support this. First and foremost, they support a specific objective of digitising the whole German rail network by 2035.
- Digital Automatic Coupling has been proposed as the primary technology for increased railroad freight transit effectiveness (DAK). It would cost more than eight billion euros to refit the 450 000 freight cars across Europe in this decade. They emphasise in the document that businesses require financial support from the EU and the federal government to complete this mission.
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Germany to fund private rail connections to encourage rail freight
- In order to promote rail freight shipping, the German government is boosting the money available for private rail connection investments. In order to give businesses additional incentives to send their goods and products on the more ecologically friendly rail, the Federal Ministry of Transport and Digital Infrastructure (BMVI) is stepping up its efforts to improve business access to the rail network.
- Up to 50% of the costs for new and expanded connections, as well as for the reactivation and maintenance of current connections, will be funded by a federal funding scheme starting on March 1, 2021. From 2021 onward, the funds from the previous year will be increased by more than twice as much, reaching 34 million euros. The funds will later be increased to 49 million euros starting in 2024. The program has a five-year budget of 200 million euros overall. The Transport Ministry also wants to accelerate private investment in new access points through faster planning and fair cost sharing. Possible barriers that could discourage private investments are also among the main focal points. Private rail connections are linked to the rail network via a switch. The infrastructure companies, like DB Netz, are increasingly transferring their costs for operation and replacement, to private investors alone. For a fair distribution of costs, the BMVI issued a legal clarification in the General Railway Act.
