German Rail Regulator Mandates Increased Track Access for Competitors

The Federal Network Agency in Germany has issued a directive requiring Deutsche Bahn to allocate a greater portion of its rail infrastructure to competing companies. The decision targets heavily used long-distance routes, where Deutsche Bahn has historically maintained a strong presence, controlling about 95 percent of the market share. Under the new regulation, DB InfraGo, the infrastructure subsidiary of Deutsche Bahn, must now reserve between 25 and 40 percent of available track capacity on these busy lines for other railway operators.

This measure is designed to foster more robust competition in the long-distance passenger rail sector. The agency anticipates that increased competition will benefit travelers by potentially lowering ticket prices and improving service quality. The move comes in response to requests from international operators such as the Italian rail company Italo, which has announced plans to enter the German market by 2028. Italo intends to operate high-speed services connecting major cities including Munich, Frankfurt, Cologne, Dortmund, Berlin, and Hamburg, with a projected 56 daily departures using 30 trains at full deployment.

Currently, access to rail pathways--known as 'trassen'--is managed by DB InfraGo. Train companies must secure these slots to run services on specific routes at particular times. Due to limited track capacity, especially at major transport hubs such as Hamburg, Berlin, and Cologne, the competition for these slots can be intense. This congestion has contributed to frequent delays, affecting the reliability of rail services nationwide.

The Federal Network Agency's recent action aims to establish a guaranteed minimum access for non-DB operators on high-demand routes, particularly those with regular-interval services. This change is expected to provide greater planning security for new entrants like Italo and existing competitors such as FlixTrain, both of which must make substantial investments in rolling stock and operational infrastructure. Until now, uncertain prospects for obtaining sufficient track access have represented a significant barrier to market entry and expansion.

Deutsche Bahn has expressed concerns about the impact of this regulatory intervention. The company argues that profits generated on lucrative, heavily trafficked routes are used to subsidize less profitable services in rural and lower-demand regions. It warns that reallocating track access to competitors could force the company to reduce services in these areas, as competitors tend to focus on the most profitable corridors and may not serve smaller communities.

The regulator, however, maintains that the new policy is intended to promote fair competition without disadvantaging other types of rail services, such as freight or regional transport. The agency emphasizes that the allocation process will balance the needs of all users while addressing chronic capacity bottlenecks on Germany's busiest lines.

FlixTrain, the largest current competitor in the German long-distance rail market, already operates several high-frequency routes but has faced similar obstacles regarding access to popular tracks. The new framework is expected to improve the competitive landscape for all non-DB passenger rail operators, enabling them to better plan their service offerings and respond to market demand.

This development follows a broader European trend toward liberalizing rail markets and encouraging new entrants to increase efficiency and consumer choice. The decision reflects ongoing efforts by regulators to modernize infrastructure management and support a more dynamic, competitive rail sector in Germany.