Deutsche Bahn: “It will come down to the worst case scenario”

meIn the days of Corona, the main problem for Deutsche Bahn is not that too few trains are running or that those scheduled are canceled. Rather, it is often criticized that DB AG is largely maintaining its operations despite the sharp drop in passenger numbers and even expanding it over Christmas. The Federal Government’s Rail Transport Commissioner, Enak Ferlemann (CDU), speaks about the state company in the pandemic in an interview via videoconference.

WORLD: Mr. Ferlemann, Deutsche Bahn will use additional trains during the holidays. So that more people can travel across the country. Does that make sense in a pandemic where contacts should be avoided?

Enak Fronhöfer: I would see it the other way around: there is more space available so that the few people who travel despite the pandemic can keep their distance. We currently have an occupancy rate of 20-25 percent and do not expect a significant increase during the holidays. Of course, some people will travel more by train. We want to make up for that with the additional trains.

WORLD: Clearances must be observed in all other areas. Why is there no obligation to make a reservation at Deutsche Bahn that guarantees that the adjoining seat remains free?

Ferlemann: The train allows the nurse to come to work in the morning. It is systemically relevant, especially in the pandemic. So it makes sense to have a system where you can make reservations and thus know that normally no one is sitting in the seat next to you. But at the same time it is a system that remains open: if you miss your train because an appointment is longer or the connecting train is late, they must still take you. By the way, all passengers wear masks.

WORLD: The economic consequences are likely to worsen again as a result of the second lockdown. How expensive will the crisis be for DB?

Ferlemann: In the best case, Corona costs Deutsche Bahn around eight billion euros, in the worst 13 to 14 billion euros. In the worst case, we have already taken into account a second partial blockage, because it had to be assumed that there would be significant restrictions again in winter. Now it’s clear: it won’t result in our best scenario, but in our worst. If we still have massive restrictions during January, February and March, or if the measures are still necessary next fall, then we have to examine what effects this will have.

WORLD: Will the 5 billion euro capital increase be enough for DB?

Ferlemann: The five billion euro capital grant is based on the worst case, so we should be right. If there were restrictions throughout 2021, we might have to step up again. But it is important that we only inject capital for the damages caused by the pandemic. Only this part is replaced, not a penny more. It may also be that the railway receives less than five billion euros if it cannot prove that the crisis in the crown caused such great damage. The auditors will look at this very closely.

WORLD: But the Bundestag had to raise DB’s debt ceiling for the second time: from € 30 billion to € 35 billion.

Ferlemann: This was necessary because the capital increase cannot be carried out this year because the EU Commission has not yet approved it. It was also about a cushion for next year so that we don’t have to keep pushing the line. However, railways also have to invest in new trains, new freight train locomotives and new high-speed lines. We would even like to spend faster, because in times of pandemics it is possible to renew and build better than at full load.

WORLD: When should DB pay all debts?

Ferlemann: Payment of new debts should begin after the end of the corona pandemic. That will probably be the case in 2023.

WORLD: Will DB have to increase the fee for the refund?

Ferlemann: The rate structure is a central component of the Group’s economic strategies. And the board of directors must decide on these strategies. This is not about politics.

WORLD: Why has the capital increase not yet been approved by the EU Commission?

Ferlemann: The federal government has not yet submitted the application. A so-called preliminary procedure is currently running. Among other things, it deals with the conditions that can be expected in case of a permit. The federal government could have foreseen a conclusion to the negotiations, but the DB board of directors could not.

WORLD: What has been trading for so long?

Ferlemann: The question is: is the pandemic a unique and surprising event, comparable to an earthquake? If that is the case, state aid is allowed without further conditions. But if a pandemic lasts longer, as it does now, it becomes normal. That is the position of the EU Commission. But that would also mean that it can impose conditions to avoid distortions of competition. The conditions in the room are not yet what the Bahn Board of Directors imagines.

WORLD: The DB should save to make up part of the losses. Do you have to save even more?

Ferlemann: Yes, the railroad has to save. Therefore, DB has tried to adapt the collective agreements. The rail and transport union EVG has agreed. Negotiations with the very strong GDL train conductors union failed. However, the federal government’s capital increase is linked to concessions by employees.

WORLD: Are there any strikes after the end of the GDL collective agreement in February?

Ferlemann: The state does not interfere in the negotiations between the parties to the collective bargaining. But I expect a very tough argument. Because, in principle, it is about whether the rail system is still functional. Everyone has to do their part. I think it is a shame that the GDL has left the alliance because I really appreciate the train drivers union. But in this situation it is absolutely excessive to demand substantial rate increases.

WORLD: Transport Minister Andreas Scheuer (CSU) is campaigning for a new version of the Trans Europa Express, TEE 2.0. But who wants to travel from Paris to Warsaw for more than 13 hours?

Ferlemann: It is clear that only a few travelers pass from Warsaw to Paris. Some will go up to Berlin to travel to Cologne. Others go to Paris from there. So there are multiple passenger exchanges, the trains are always well packed, and that makes them cheap, so they can also be used by those who want to cover really long distances without having to travel much further due to the longer transfer times. .

WORLD: Night trains would make sense. DB plans to establish four new lines with other European railways by 2024, including between Berlin and Paris. Why now, after DB has almost completely withdrawn from night train traffic?

Ferlemann: Deutsche Bahn has not been able to operate these night trains economically in recent years because their sleeper cars were so old and not worth a change or overhaul. However, the night train traffic is worth it for the Austrian ÖBB, which has a different tax system in its home country and can therefore travel more economically, which is why ÖBB was able to take care of many of these connections in Germany. By the way, these trains are run by DB as a service provider. That’s the right way: if you can do better in Europe, you should. For me, it is essential that customers find the best possible offer.

WORLD: By 2030, the Germany-Takt should allow a nationwide switch between all regional and long-distance trains in a few minutes. To achieve this, it is necessary to expand many stations and speed up the routes. Can it be achieved in nine years?

Ferlemann: There is a lot to build, but often in very small parts: another platform, a walkway, a different marking technology. I am absolutely convinced that we can do it by 2030. We provide the money for this. In addition, there is the completion of large projects such as Stuttgart 21 with the high-speed line to Ulm. With that we can keep up to a great extent. However, some major projects needed at major interchange stations or high-speed lines are unlikely to be completed until after 2030 due to resistance from local residents or regional politicians. Therefore, at one point or another, with the best possible pace, it will take even longer.

WORLD: Minister Scheuer has suggested that a new rail reform be openly debated. Do you think it makes sense?

Ferlemann: More than 25 years after the last great rail reform, it is correct to ask what went well and what did not. Unfortunately, this discussion fell victim to Corona. In the current situation, an entire corporation should not be upset. So this will be a project for the next legislative period.

WORLD: But what went well and what didn’t?

Ferlemann: The railway reform in local transport was a marvel. It is much better today than then. However, the competition that takes place there is almost always competition between the state railways, because behind many railway companies in local transport there is a European state railway as the owner. In long-distance transport, we have a significantly better range of services than before, but almost without competition. It is not satisfactory.

And when it comes to freight transport, there is competition from the private sector, but the whole sector has not been able to increase its share of total transport compared to road. It therefore makes sense to ask about the structures of rail transport, as well as the weightings of transport policies between roads, railways, airplanes and ships. Above all this, one has to lead open discussions between the Union, the SPD, the FDP and the Greens.