Billions in funding go past railway companies

by time news

2023-10-16 18:32:17

Local public transport in Germany is notoriously underfunded. Every year, government subsidies amounting to billions of euros are necessary – this was already the case before the introduction of the Deutschlandticket in May, but has become even more severe due to the heavy subsidization of the 49-euro ticket. Under the influence of the Corona crisis and rising energy and personnel costs, the federal government last year Regionalization means increased by one billion euros to alleviate the suffering of transport companies.

But none of this billion has yet reached the private railway companies, complained Martin Becker-Rethmann, President of Mofair, an association of private rail transport companies. โ€œOne wonders where this billion has gone,โ€ said the association president on the occasion of the presentation of the eighth Competition reports on Monday in Berlin, which the organization publishes every two years together with the Freight Railways Association.

โ€œWe have nothing of this billionโ€

The Mofair President explained that there are 28 authorities in the 16 federal states who organize local rail passenger transport in Germany. The authorities primarily refer to transport associations. The money was actually intended to help rail transport companies cope with the enormous increases in energy and personnel, Becker-Rethmann reminded. The federal government also paid it to the states as promised, but what then happened to it is unclear. โ€œWe suspect that the money will be used to replenish the authoritiesโ€™ empty coffers.โ€

In any case, the money will not be used to offset price increases or to finance new routes as promised. โ€œWe have nothing of this billion. Quite the opposite: We are experiencing the debate that routes have to be saved because the authorities say that there are not enough financial resources.” He demanded: “We need a clear debate about how we can sustainably finance these services and expand the offering. โ€œ

Published/Updated: Recommendations: 12 Dietrich Creutzburg, Berlin Published/Updated: , Recommendations: 8 Corinna Budras Published/Updated: , Recommendations: 14

In local rail passenger transport (SPNV), the market share of the competing railways is now well over 40 percent, emphasized Mofair. This made a โ€œmassive expansionโ€ of the offering possible โ€“ despite adverse conditions caused by multiple crises, the dilapidated infrastructure and rising personnel, material and energy costs. The association criticized the awarding process for local transport: it called for an appropriate allocation of risks, and more emphasis should be placed on quality and innovation. The transport companies should no longer be reduced to the role of โ€œpure hired driversโ€.

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