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.

The rail companies, among which are TAC collector DB InfraGO, DB Cargo, DB Fernverkehr, Havelländische Eisenbahn, Metrans Rail Deutschland and BBL Logistik, maintain that the German government meddles too much in the determination of track-access charges. EU law prohibits legislators from determining infrastructure managers’ prices “too specifically”, according to Die Güterbahnen.

A political deal undercutting rail freight

Daniela Morling, press spokesperson for Die Güterbahnen, explains to RailFreight.com that the current German system puts an unfair burden on rail freight and long-distance passenger companies, which has prompted the rail companies to start the lawsuit. A political deal between the federal government and the German states shields local rail companies by upholding a strict limit on TAC increases for the local companies. In 2025, the maximum increase is 0,6 per cent.

Track-access charges are supposed to cover DB InfraGO’s incurred costs and a return on investment that the infrastructure manager is legally entitled to, amounting to 600 million euros. As DB InfraGO’s costs and the required return on investment grow, so will track-access charges. With the strict limit on TAC increases for local passenger rail, the burden primarily befalls rail freight and long-distance passenger rail, Morling says.

The market subsidising the state

In practice, the current system forces the market to subsidise the state. Currently, TACs paid by rail freight companies finance the maintenance of stations used by local passenger rail. “The freight railroads, most of which are privately operated, are subsidising part of the costs of regional rail transport, which should actually be borne by the federal and state governments”, Daniela Morling explains.

At the same time, there is a general and broader dissatisfaction with the planned TAC increase. “We should pay a lot more money for less performance. The condition of the network has not improved and the obstacles in the network are getting bigger and bigger due to more and more construction sites. This means that rail companies’ operating costs are increasing anyway”, Die Güterbahnen CEO Ludolf Kerkeling states.

Moreover, TAC increases seriously endanger the rail freight sector, according to the rail freight organisation. “Companies cannot pass on further cost increases to end customers, and numerous transport operations become uneconomical and are switched from rail to road”, the organisation states.

Onwards to the European Court of Justice

The suing parties are aiming for a decision by the European Court of Justice (ECJ), according to Die Güterbahnen. “​​It is actually our declared aim that it will go to the European Court of Justice. Either the Cologne Administrative Court or the Federal Administrative Court should refer the matter to the ECJ for clarification. They will then decide whether or not it is contrary to European law”, says Daniela Morling.

Also read:

• Short-term TAC hikes put transport contracts under strain
• Romania reduces track access charges to boost intermodality
• DB begins 1.6 billion euro expansion of Hanau-Gelnhausen line