A broad alliance of German companies, trade unions and civil society organizations has called on the German federal government to ensure reliable long-term funding for the country's rail infrastructure, warning that planned budget cuts could further increase disruptions to industrial supply chains.
According to the alliance, the latest draft federal budget reduces funding for the renovation and expansion of Germany's rail network by €1.3 billion. More than 90 rail projects are reportedly at risk of being abandoned, while around 30 projects remain without funding this year despite the availability of the special infrastructure fund. The alliance stated that insufficient rail infrastructure investment would particularly affect sectors dependent on reliable freight transportation, including steel, basic materials, chemicals and logistics.
WV Stahl warns of higher production costs
German Steel Federation (WV Stahl) CEO Kerstin Maria Rippel stated that reductions in rail infrastructure investment would increase production costs and further weaken Germany's industrial base.
She stressed that steelmakers, their suppliers and steel-consuming industries require a reliable rail network and called on the government to address what she described as the chronic underfunding of rail infrastructure.
Alliance calls for lower track access charges
The alliance also highlighted increasing track access charges as an additional burden. Following a European Court of Justice ruling that found the cap on track access charges inadmissible, local rail passenger transport faces additional annual costs of around €400 million, according to the statement. The organizations are calling for a reform that would permanently reduce track access charges, including for rail freight.
In addition, the alliance called for reliable annual funding of €350 million for single wagonload freight transport, while emphasizing the need for greater rail freight capacity to support the shift of goods transportation to rail. The organizations also argued that strengthening rail infrastructure is important for the resilience of Germany's overall transport network. They pointed to low water levels on the Rhine as an example of why sufficient spare rail capacity is necessary to accommodate additional freight when other transport routes face disruption.
