A 2016 law could make German rail freight even more expensive

A recent study reveals that Germany’s local rail passenger transport could save billions by 2030 due to the Railway Regulation Act (ERegG) adopted in 2016. However, these savings come at the expense of freight and long-distance passenger operators, who are left to shoulder the financial burden.

The study, commissioned by the association Die Güterbahnen and conducted by the INFRAS institute, warns of mounting financial pressure on these sectors. If unaddressed, the current pricing model threatens to exacerbate the already tense situation in Germany’s rail industry, particularly in the context of rising track access charges and the introduction of the Deutschlandticket.

Billions at stake

According to the study, local rail services could save up to 7 billion euros by 2030, largely because of the price cap. However, this financial relief for local operators is only possible if freight and long-distance passenger rail services absorb the increased costs. Freight operators are calling for urgent reform, arguing that the current pricing system is unsustainable. They urge lawmakers to rethink the cap, calling it a “foreign body” in the rail pricing structure that unfairly shifts costs onto other sectors.

The financial implications are stark. Between 2017 and 2022, the track price cap saved local rail services approximately 200 million euros, transferring these costs to other rail users. This was during a time of relatively modest infrastructure cost increases. However, by December 2024, rail freight and long-distance passenger services could face track access price hikes of up to 16,2 per cent and 17,7 per cent, respectively, while local rail’s increase is capped at a mere 0,6 per cent. The forecast for 2025 is even more alarming, with potentially higher cost increases for freight and long-distance passenger operators.

“This forecast shows politicians how urgent the need for change is. In 2016, the federal states used the Bundesrat to enforce their own interests by imposing a cap on train track prices – without considering that this could lead to higher costs for freight and long-distance transport,” says the association Die Güterbahnen. INFRAS, who conducted the study, adds, “This track pricing system harms the federal government’s transport and climate policy goals. […] It also risks turning rail operators against each other while road operators keep paying less than their railway counterparts”.