Federal government must raise 8 billion euros for rail digitization by 2029

The German government is trying to counter the impression that it and Deutsche Bahn (DB) are not taking the digitalization of the railways seriously and are risking expensive delays. In an answer to a question from the CDU/CSU parliamentary group in the Bundestag, the Federal Ministry for Digital and Transport (BMDV) emphasized that around 2.3 billion euros in additional budget funds and commitment appropriations had been committed in the 2024 budget alone through the conclusion of ten financing or amendment agreements for ongoing measures for the digital rail projects.

Further funds will be made available in the form of an increase in Deutsche Bahn's equity in 2025 for its Digital Rail Germany program, writes the BDMV. Almost 350 million euros of this would flow into equipping the Rhine-Alpine corridor with the European Rail Traffic Management System ERTMS alone. The office of Minister Volker Wissing (non-party) emphasizes: "The federal government is thus clearly acknowledging its financial responsibility."

Alongside the European Train Control System (ETCS) and digital interlocking systems (DSTW), ERMTS is one of the most important factors in modern rail traffic, in which intervals can be compressed and more trains can run one behind the other. ETCS focuses on the safe control of individual trains, while ERTMS offers a standardized control and communication framework.

Obstacles to rail digitization

According to reports, the digitalization of the railways in Germany is faltering: the ETCS version in use is still in its infancy and is more likely to lead to further failures. The system will therefore not be used at all for the upcoming renovation of the Berlin-Hamburg railroad line. The planned transfer of employees from the rail infrastructure subsidiary DB InfraGO to Digitale Schiene Deutschland (DSD), which was also founded in 2019 under the umbrella of DB, has apparently not taken place, the CDU and CSU complain. In addition, the first major pilot projects with ETCS and DSTW were to begin in 2020 in a starter package on the trans-European Scandinavian-Mediterranean corridor, on the Cologne-Rhine/Main high-speed line and in the digital hub of Stuttgart. Little is happening here either.

The digitalization of rail transport is "a decisive measure for modernizing and increasing the efficiency of the German rail network", the BMDV now emphasizes. "Outdated technology, discontinued technologies and European obligations require the prompt introduction of digital technologies." The department had previously stated that die conversion was "also indispensable for achieving growth and capacity targets".

According to the government, a total of 622 million euros was spent on the digitalization of the railways in 2024, of which 357 million euros came from federal funds. In 2023, the figure was 505 million euros (federal contribution: 213 million euros). For 2025 to 2029, however, the BMDV assumes a funding requirement of around 14 billion euros for the rail requirements plan. However, the recent "lowering of the medium-term funding line" has already led to an investment backlog, which makes setting new priorities unavoidable.

Estimated total investment: 54 billion euros

For the next five years, more than 3.5 billion euros have been contractually committed in the area of digitization in the chapter "Equipping German infrastructure and rolling stock" with ERTMS, the BMDV explains further. In an updated feasibility study for an overall strategy for the digitalization of the railways from 2024, experts determined a financial requirement for federal funds of around 8 billion euros by 2029. Overall, the experts assume a total gross investment volume of around 53.9 billion euros by 2070 for the new "focused program". This is offset by benefits amounting to 102.5 billion euros.

Based on the results of the study, the BMDV says it is also working on the development of a "holistic concept" for the strategic management of the program. The core components are a stronger role for the federal government and the establishment of an operational steering institution together with the sector. In addition to an existing model project, a funding guideline for a "first-of-class immediate program" is being drafted for vehicle equipment.

(nen)