Germany gives initial green light for Italo’s entry into the German market

Italo’s plan to enter the German high-speed rail market has taken a step forward that could prove decisive. The Federal Network Agency, Germany’s federal regulatory authority, is in favour of opening up the passenger rail transport sector to competition by limiting the share of capacity reserved for Deutsche Bahn (the German railways) on the busiest routes. According to the plan outlined by the Authority’s chairman, Klaus Mueller, the subsidiary DB InfraGo, which is responsible for managing the rail network, will no longer be able to allocate more than 60–75 per cent of the available capacity on high-demand lines to a single operator.

The aim is to ensure that at least one competitor to DB Fernverkehr, Deutsche Bahn’s high-speed division, can actually operate on the most congested corridors, such as those serving the Munich and Frankfurt hubs.

“We are boosting competition in long-distance rail transport. For passengers, this means better service quality and lower prices,” explains Mueller. The measure aims to facilitate the entry of new operators, including the Italian company Italo and FlixTrain, which until now have had to contend with uncertainty surrounding the annual allocation of train paths – a factor that makes it more difficult to invest in new trains. However, the system for allocating network capacity will remain unchanged and will continue to be valid on an annual basis.

In a statement, Italo “welcomes the announcement by the German regulatory authority, which sends a clear signal that Germany is ready to embrace genuine competition in high-speed rail transport, to the benefit of all passengers”.

“Pending the reintroduction of framework agreements, the proposed rules enable new operators to access the necessary capacity – in terms of train paths and commercial space in stations – thereby allowing for fair and effective competition in the market. We are confident – as the Italo statement goes on to say – that the Competition Authority, the Monopolies Commission and the Advisory Committee on Railway Infrastructure also share this approach. We also welcome the fact that the decision safeguards regional rail services. An integrated rail system serving all passengers, including those travelling outside the main corridors, remains a priority that we fully support. As soon as the final decision is available, we will analyse all the technical aspects in detail.”