Union Raises Concerns Over Italo Trains Potentially Reducing Long-Distance Rail Access in German Cities

The introduction of the Italian rail operator Italo into Germany's long-distance train market from 2028 has prompted apprehension among railway sector representatives. The Railway and Transport Union (EVG) warns that the planned expansion could result in reduced long-distance train services for at least 16 German cities. This concern arises from an EVG analysis, which highlights the possible exclusion of certain cities from the Intercity-Express (ICE) and Intercity (IC) networks, should Italo focus its operations solely on high-demand routes.

According to industry assessments, the arrival of Italo may lead to significant shifts in how train routes are allocated. Deutsche Bahn's long-distance division estimates that up to 120 stations could be affected if profitable routes are granted to new competitors, potentially diminishing the frequency and breadth of long-distance services in less-populated areas. While Deutsche Bahn supports competition in principle, it cautions that the redistribution of lucrative routes could force the company to cut unprofitable, but socially important, services that are currently subsidized by earnings from the main lines.

Italo's entry into the German market is backed by substantial planned investments in rolling stock. The company seeks assurances that it will be permitted to operate on profitable long-distance corridors. These train paths are managed by InfraGo, a Deutsche Bahn subsidiary, under the regulatory oversight of the Federal Network Agency. Initial routes proposed by Italo include key connections such as Munich-Frankfurt-Cologne-Dortmund and Munich-Berlin-Hamburg, which are among the most heavily trafficked in the country.

The EVG emphasizes that limiting new competitors to major routes could undermine the integrated nature of the current rail system. The union argues that If Italo is allowed to select only the most profitable lines, there may be insufficient cross-subsidization available for routes serving smaller cities, leading to their exclusion from the national network. Cities such as Schwerin, Augsburg, and Jena have been specifically cited as at risk of losing direct long-distance train connections.

The union proposes that authorities consider bundled route allocations. This would require new market entrants like Italo to also operate less profitable provincial routes alongside the major intercity corridors, ensuring continued service to less populous regions.

Deutsche Bahn's management echoes the union's concerns, calling for policy interventions to establish clear and fair competitive conditions. The company's leadership has recently urged lawmakers to strengthen regulatory frameworks to prevent a scenario where competition is limited to high-yield routes, which could negatively affect overall network accessibility for the majority of passengers.

The debate highlights broader challenges in balancing market liberalization with the need for comprehensive national rail coverage. Authorities, including the Federal Network Agency, play a central role in overseeing the fair allocation of track access and ensuring that competitive pressures do not erode essential services for smaller communities.

Industry observers note that the situation in Germany reflects wider European trends, where incumbent rail operators face increasing competition from foreign entrants aiming to capitalize on profitable segments of the network. The outcome of regulatory decisions in this case may set important precedents for the future structure of Germany's rail transport sector.