Following the ECJ ruling, Germany now needs to reform its TAC system. This is proving to be a politically sensitive task: the German states, who fund local passenger rail, fear that they will no longer be able to so if prices go up. Under the existing pricing system, charges for local passenger rail are tied to funds given to states for the local rail operations.

The transport ministry is aiming for a renewed system by 2027: “Our goal is and remains to present a new track access charge system by the timetable change in 2027”, minister Schnieder said earlier.

That timeline does not satisfy the rail freight sector. These companies are hoping for short-term clarity for their own financial planning. Without knowing what’s coming, such planning becomes guesswork. If they plan ahead with a price that’s too high, they could lose customers. If they calculate with a price that is too low, they might have to compensate for additional costs later, writes German publication DVZ.

Full-cost or marginal-cost?

Lastly, there is the question of the TAC model. Currently, Germany charges infrastructure usage fees on the basis of the full-cost principle. The rail freight industry has spoken out in favour of a marginal-cost pricing system, where companies pay only for the infrastructure costs added by an additional train and a possible efficiency markup. A study by INFRAS, commissioned by rail freight association Die Güterbahnen, has shown that this could reduce TACs by 54% for freight operations.

The marginal-cost system is the standard pricing model in Europe. However, the German transport minister has expressed concerns that its implementation in Germany would lead to a major financing shortage for the railways.

Die Güterbahnen claims otherwise: “Contrary to repeated claims by the Federal Ministry of Transport, such a switch would not create a funding gap, and therefore there would be no additional burden on the federal budget if three existing federal funding streams were consolidated simultaneously”, the association wrote.

Supposedly, the eight billion missing euros are already provided for indirectly. The German government provinces retroactive TAC subsidies, the local public transport funds and planned maintenance subsidies.

“Track charges based on marginal costs lead to more traffic and thus higher revenues. The current full-cost system, on the other hand, stifles traffic and makes the network operator sluggish. The figures show: The alleged funding gap is a political scare tactic – nothing more”, Die Güterbahnen’s Managing Director Peter Westenberger commented earlier.

The subsequently higher TACs for rail freight have been a major annoyance for the industry. Higher charges bring about higher costs. This hinders the competitiveness of rail freight companies. They already struggle to compete with the road sector.

“This ruling is the final nail in the coffin for the current German track access charge system”, commented Die Güterbahnen Managing Director Peter Westenberger.

Multi-million euro refunds

“Federal Transport Minister Schnieder must now prioritise presenting proposals for a fair, legally sound, reliable, and effective track access charge system that will boost transport volumes. We demand that the incorrect track access charge calculations for 2025 and 2026 be reversed as quickly as possible.”

The ruling is great news for TAC-paying rail freight companies operating in Germany. They can reclaim the overpaid charges. They expect the total figure to amount to a “three-figure million-euro sum”, between 100 million and 999 million euros.

“Last night it was announced that the commissioning of the Ansbach signal box, located on the main diversion route, has to be postponed for the second time”, the association said. Without the new signal box in Ansbach, the diversion route via Treuchtlingen will be highly congested, disrupting traffic to Munich and the rest of Bavaria. “Should a serious incident occur in Ansbach, we see no other option than to postpone the closure of the Nuremberg-Regensburg line until the signal box is operational”, Die Guterbahnen’s managing director Peter Westerberger added.

‘Diversion routes are too fragile’

The association also highlighted how the diversion routes proposed by the German infrastructure manager are too fragile and how operations costs will increase without public support. Moreover, not all the promises made by the DB InfraGO will be kept during the closure of the Regensburg-Nuremberg line, especially regarding rail freight. “For example, the long-announced extensions of passing tracks to a train length of 740 meters will not be carried out during this closure”, Die Guterbahnen underlined. This somewhat adds insult to injury, as rail freight operators will have to struggle during the line closure but will not reap all the benefits.

Generalsanierung shortcomings

The issues with infrastructure upgrades, desperately needed in Germany, does not end with the BVWP 2030. Last year, the government tried to double down, introducing the Generalsanierung, a massive rail renovation initiative involving over 40 projects. The first idea was to complete all these upgrades by 2030, which would have translated into simultaneous prolonged closures of key lines.

However, this summer DB InfraGO decided to spread out the renovations until the mid-2030s, causing fewer disruptions, albeit for a longer time. The German industry responded positively, but the temporary capacity restrictions planned for the ongoing and upcoming upgrade projects have an impact outside the border too.

Germany’s role in European logistics is vital, especially for the Rhine-Alpine axis connecting Italy to the Netherlands. Thus, an up-to-date railway network there, is in the best interest of many especially given the position of German ports such as Hamburg and Bremerhaven. However, improving the network is a very expensive operation that requires time as well.

The plan is the following: The German government wants to reduce infrastructure manager DB InfraGO’s maximum return on equity by three percentage points. Because of how the German TAC system works, that would limit how much profit DB InfraGO can legally make on their track access charge income.

Now, explains German private rail freight association Die Güterbahnen, DB InfraGO is entitled to a maximum profit margin of 5.2%. Reducing that by three points would lower that number to 2%, which would limit next year’s TAC costs for rail operators in Germany.

Still a 16% increase

“Limit” is the key word here. Such a step “is far from sufficient to stabilise track access charges”, explains Die Güterbahnen. “On the contrary – they would rise again by up to 16%, following the 16.2% increase last year.”

The rail freight association laments the ever-growing and unpredictable “rail toll”, whereas the road sector has remained stable and predictable for several years. “Imagine buying a car today – but not finding out what it actually costs until six months from now”, rail policy offer Oliver Smock said. “That’s exactly how the current track pricing system works – and it’s unsustainable for companies.”

Die Güterbahnen calls for DB InfraGO’s return on equity to be set at 0%, “thus completely foregoing any return on investment.” That would reduce the cost burden for rail freight by around a billion euros, according to the association.

Race against time

The hope is that the German parliament will succeed in revising and passing the law ahead of the timetable change on 14 December, so that rail freight can immediately benefit. “In the medium term, the federal government must initiate the fundamental reform of the track access pricing system announced in the coalition agreement – ​​with stable prices, genuine efficiency incentives, and a consistent focus on the common good.”

When it comes to rail freight, key issues addressed in the strategy include track access charges (TAC) reform, a plan for single wagonload traffic and a further separation of DB InfraGO from the Deutsche Bahn Group.

A more independent DB InfraGO

When it comes to the latter, there are some cautious positive reactions to Schnieder’s plans for DB InfraGO. “We believe that the abolition of the infrastructure department on the Group Executive Board fulfills one of our central requirements”, private rail freight association Die Güterbahnen stated following the strategy presentation.

The measure would reduce the influence of the broader DB Group in infrastructure management issues “A big step forward”, Die Güterbahnen says, although it does not eliminate all forms of mingling by the Group. “There are other ways to exert influence, for example through infrastructure officers in the DB Group, but the board of directors has certainly been the most influential body to date”, the association says.

The positivity continues when looking at the announcement for a TAC reform by 1 January 2027. “This is very helpful for us in terms of specifics, and we now need to move quickly to implement it.” How such a TAC reform will look in practice however, the strategy does not specify.

Focus on passengers

Those were, in essence, the good parts for rail freight. Overall, the strategy is still very much centered around passenger traffic, and specifics for rail freight are severely lacking. “Some things sound very progressive, but overall, the strategy is simplistic in its current form”, write passenger rail competition association mofair and Die Güterbahnen in a joint statement.

“It contains no concrete transport targets and hardly any measurable figures. The framework provided by the federal government remains vague, and the changes to the management concept are far too weak to bring about a turnaround at DB”, they add.

To the disappointment of the rail freight sector, competitors in the branch are not at all mentioned in Schieder’s plans. The only competition issue brought up is non-discriminatory access to the rail network, which is not much of a problem today, says Die Güterbahnen. “Network access is largely fair.”

The strategy’s short comment on single wagonload traffic – the future of which will be highly impactful on rail freight in Germany – also leaves much to be desired. Schnieder wants to “examine the transformation of single-wagon transport combined with a hub system.” Die Güterbahnen says that it is unable to comment on what a hub-based single wagonload system would mean.

Where is the money going?

The rail freight association would have liked to see more tangible steps to improve infrastructure spending transparency: “At the moment, we are seeing a lot of money being spent on renovations, for example, and project costs often skyrocketing. However, it is practically impossible for outsiders to find out why this is happening and where the money is going.”

In conclusion, the strategy does not offer much to freight. “We see the one-sided focus on passenger transport and the virtually insignificant consideration of rail freight transport as a warning sign that the focus is on popular issues without considering rail transport as a whole”, says Die Güterbahnen.

Part of the German plan is to establish a task force. In the absence of tangible freight plans, perhaps this new body could provide an opportunity for freight to claim what it needs in the coming years.

“The railway industry is tired of the same old salami tactics: promises are made, then watered down bit by bit in the most opaque way possible, while politicians fail to intervene”, commented Peter Westenberger, managing director of private rail freight association Die Güterbahnen. “For almost all full closures, DB has already extended the ‘core closure.’”

Out of control

Now, matters seem to be getting worse. The struggling rail freight sector would benefit from predictability and consistent availability of infrastructure to provide a reliable service to customers. That seems to be getting more difficult with DB InfraGO’s plans.

“During corridor rehabilitation, it was always stated that a five-month closure would be followed by at least five, and initially even up to ten, years without construction”, Westenberger adds. “With an uncontrolled extension of the closure period, DB InfraGO is depriving not only the railway companies but also the stressed entire rail system of its business basis.”

Die Güterbahnen calls upon the German federal government to intervene and to “prevent DB from doing what it wants.”

“Better advance planning and more efficient construction are key. We hope that the Minister of Transport will end the current practice of issuing free passes to DB in his rail strategy, which will be presented on September 22nd”, Westenberger concludes.

“Anyone who seriously wants to shift traffic from road to rail must fundamentally reform the track access charging system.” Germany’s TAC system is notoriously complex and favours local passenger rail over freight and long-distance passenger traffic. The last two bear a disproportionate amount of the costs.

“Until this reform is implemented, significantly higher track access subsidies would have been absolutely essential. Instead, the federal government is responsible for massive misguided incentives in the system.”

DB InfraGO wants higher TACs

To make matters worse for German rail freight, the country’s infrastructure manager DB InfraGO has applied for a 24% TAC increase in 2026. “For our members, it is now a matter of survival”, comments Wesseln. According to Die Güterbahnen, such an increase would be“not out of necessity”, but rather “to reap high profits from the rail network.”

“The industry’s last hope lies in the planned law to reduce [DB InfraGO’s] profit claims, which will be debated […] next Wednesday”, says Wesseln. “However, the ‘moderate’ reduction in returns provided for in the bill is not enough. Relief will only come when DB InfraGO is finally operated consistently in the public interest and without profit. Rail is a public good – and must no longer be allowed to degenerate into a profit machine that drives transport away from rail.”

Insider sources have reportedly told dpa and AFP that the decision to terminate Lutz’ contract is connected with the poor performance of the rail operator. Germany’s rail infrastructure is outdated and in poor condition, and the punctuality of trains is lacking.

A new leading figure at DB will coincide with a new strategy for the company. “I’ve always said: strategy first, then personnel”, transport minister Patrick Schnieder is quoted as saying. “Our concept is in its basic form; now we need to find the right person to implement it. This selection process, too, is about thoroughness and diligence over speed!” Schnieder is expected to present a long-term strategy for DB later this year.

The sector reacts

The German private rail freight association Die Güterbahnen has responded positively to Lutz stepping down. Its managing director, Peter Westenberger, commented: “”Lutz never consistently implemented the supposed return to “railways in Germany” internally. Instead, he relied on the low and declining productivity of DB’s rail companies and the tacitly accepted unfair competitive conditions with road transport being replaced by ever more subsidies from politicians.”

“We are grateful that he is now clearing the way for a new strategy and new minds”, he continues. “It is now even more urgent for the transport minister to create a robust framework with the announced rail strategy that capable rail managers can follow as a basis for positive change.”

Night time closures

More specifically, there will be interruptions of traffic at night time (traditionally rush hour for freight trains) along the Bad Bevensen–Bienenbüttel and Frellstadt–Königslutter–Schandelah sections. Because of this, there have been freight trains covering 50 kilometres in four hours – not the most competitive transit time to use an euphemism. “As long as construction work is not better coordinated, any diversion concept that works on paper will remain a risky illusion in practice”, DB Watch stressed.