Railway Leadership Transition: New Person on the Track
In a move aimed at addressing deep-seated crises on several fronts, the German Federal Ministry of Transport is set to announce a new CEO for Deutsche Bahn on Monday. The candidate, currently the head of DB Regio, Evelyn Palla, is pending approval by the company's supervisory board, as proposed by Federal Transport Minister Patrick Schnieder.
The current CEO, Richard Lutz, has been unable to address these issues and will continue in his role until a successor is found. Unsolicited applications for the vacant position have been received, but the seriousness with which they are being considered remains unclear.
The new CEO is expected to present key points of a reform strategy titled "Agenda for Satisfied Customers on the Rails," at the federal press conference on Monday. The strategy aims to focus on a more customer-oriented approach, including increasing staff in direct contact with passengers on trains and at stations, as demanded by trade unions.
The federal government wants to keep Deutsche Bahn on a tighter leash and steer it more effectively in the future, with a focus on the Bahn's infrastructure division, InfraGo. It is expected that InfraGo may become more independent from the company, but the details of this change are yet to be clarified.
Passengers have long suffered from deteriorating punctuality in long-distance traffic due to dilapidated and overloaded rail infrastructure. Necessary construction work often leads to long-term restrictions, and regional trains are frequently overcrowded, especially in densely populated hubs.
Martin Burkert, chairman of the Eisenbahn- und Verkehrsgewerkschaft (EVG), has warned about rising ticket prices and a reduction in connections, even in long-distance traffic. Many transport associations are reducing their services due to increasing costs and insufficient funding.
It remains unclear whether the candidates fully understand the numerous issues at the railway. Jörg Kukies, former SPD finance minister, has already withdrawn his candidacy for the CEO position at Deutsche Bahn. Evelyn Palla, Michael Peter (CEO of Siemens Mobility), and Anna-Theresa Korbutt (CEO of the Hamburger Verkehrsverbund) have been mentioned as potential candidates, but their current status in the running is uncertain.
The federal government is also demanding a more customer-focused approach, including preserving travel centers and ticket machines from digitization, as outlined in an industry-wide petition. This wishlist is part of a broader effort to improve the overall customer experience on Germany's railways.
