Railway company Deutsche Bahn faces increased risks of schedule disruptions and cancellations.
Deutsche Bahn (DB), Germany's state-owned railway company, is grappling with a multifaceted crisis that has led to calls for comprehensive reforms and significant investments in modernising its infrastructure and operations.
The railway network, much of which is aging, requires modernisation, with efforts to upgrade critical lines significantly delayed. As a result, the completion date for major network upgrades has been pushed back to 2036, five to six years later than originally planned[1][3].
DB's reliability is also a concern, with around 34.7% of long-distance trains delayed in the first half of 2025. The punctuality rate has improved slightly from 62.5% in 2024 to 66.3% in 2025, but this remains well below the government’s target of 80-90% punctuality[2].
The financial difficulties faced by DB further compound the challenges in maintaining and upgrading infrastructure and services. Increasing financial resources has not resolved the crisis[1].
In response to these issues, the federal auditors (Germany’s Court of Auditors) have called for systematic structural reforms, emphasising the need for a holistic approach and addressing fundamental root causes beyond just funding increases[1].
Proposed reforms include increased government oversight and accountability, with clear targets, milestones, and deadlines set for DB to meet[1]. A comprehensive strategy is also required to modernise DB’s operations and infrastructure systematically, addressing the current lack of strategic coherence that leads to delays and inefficiencies[1].
DB has formally requested further delays, now aiming to complete major modernisation only by 2036, reflecting the scope of the challenges faced in project management and execution[3]. Government officials have also demanded improvements in punctuality and operational performance, setting deadlines and emphasising the urgency of service and financing plans[2].
Significant network upgrades include the replacement of old tracks, signaling systems, noise reduction measures, and train carriages – all crucial elements to improve reliability and service quality[2]. The European Train Control System (ETCS) introduction has been postponed until the next decade due to compatibility issues with current trains[1].
The Berlin-Hamburg train line, the most frequently used direct long-distance connection in Germany, will close for nine months from August 1[1]. The DB general refurbishment program, launched in 2024, focuses on 41 lines, covering 4,200 kilometers, for a high-performance network[1].
In addition to these measures, the German government has promised DB additional funds for rail line renovations, with investments of €107 billion by 2029[1]. Most of the additional funds will come from the debt-financed special fund for infrastructure and climate protection[1].
The refurbishment costs for the Berlin-Hamburg line have risen to €2.2 billion[1], and the costs for the refurbishment of the 70-kilometer stretch between Frankfurt am Main and Mannheim exceeded €1.5 billion, double the original estimate[1].
The DB network, which covers about 33,500 kilometers (19,800 miles) of track, will see long-distance trains take a detour of 100 kilometers, while freight trains will be rerouted even more extensively[1]. In the interim, approximately 170 buses will replace regional trains, covering 86,000 kilometers a day to maintain connections between Berlin and Hamburg[1].
The original number of switches on the Berlin-Hamburg line has been reduced, and multiple tracks have been removed from the plans[1]. The Federal Audit Office has also called for an overall strategy that includes an "adjustment" of the company structure, implying clarity should be brought to disentangle DB's holdings and subsidiaries[1].
The DB network faces additional challenges, including frequent problems exacerbated by strikes and weather conditions, particularly when it is hot or cold[1]. In 2024, DB paid passengers almost €200 million ($232 million) in compensation, an increase from the previous year[1].
In May 2025, Richard Lutz, the CEO of DB, stated that DB is currently undergoing its biggest crisis in 30 years[1]. Despite these challenges, the railway network remains an essential part of Germany's transportation infrastructure, and the ongoing efforts to modernise and improve its services are crucial for the country's economic growth and sustainability.
- The government's investment in the modernization of Deutsche Bahn's infrastructure and operations, in response to the ongoing crisis, is crucial not just for improving the railway network's efficiency but also for the economic growth and sustainability of Europe, given its importance in the continent's transportation industry.
- The European Train Control System (ETCS) introduction, though postponed until the next decade due to compatibility issues with current trains, is a critical part of the broader strategy to upgrade DB's operations and infrastructure, as it aims to increase safety, efficiency, and interoperability among European railways.
- As DB's financial challenges and inefficiencies persist, efforts to secure additional funds—with a portion coming from financing aimed at infrastructure and climate protection—indicate the government's recognition of the role that a well-maintained and modernized railway network plays in addressing climate change and fostering a sustainable transport economy in Europe.
