Foundations are being laid for a strong rail network in Germany — By 2030, a record € 86 billion will be spent on maintaining and modernizing the existing rail network. The money will be used to renovate tracks and stations, interlockings, and energy supply systems.
Today, Federal Transport Minister Andreas Scheuer, Chair of the Management Board of DB AG, Richard Lutz, and DB Infrastructure Management Board member Ronald Pofalla signed the contract for the new Performance and Financing Agreement (Leistungs- und Finanzierungsvereinbarung; LuFV III) in the presence of Federal Finance Minister Olaf Scholz.
The German Federal Government is providing € 62 billion of the total funds. DB Group is contributing € 24 billion of its own funds. This means that an average of € 8.6 billion is available each year for replacement capital expenditures and maintenance. This is 54 % more than in the previous planning period.
The Performance and Financing Agreement (LuFV) III
The LuFV regulates mainly replacement capital expenditures in the existing rail network, determines quality indicators, and imposes sanctions in the event of non-compliance. The ten-year term is twice as long as the LuFV II.
The German Federal Government and DB Group are making substantial increases to their contributions. DB Group’s infrastructure companies are also providing 44 % more funds for capital expenditure and maintenance—a total of around € 24 billion. DB Group’s infrastructure companies’ dividend payments will also be fully reinvested.
The capital expenditures will include about 2,000 km of track renovations and 2,000 switches annually. In total, plans to renovate 2,000 additional railway bridges will be initiated this decade. About € 7 billion is being invested solely in interlocking technology.
The ten-year term allows for more planning certainty for DB Group and the economy. This means that the construction and planning companies’ capacities can be developed in a future-oriented manner, and long-term agreements with suppliers can be concluded. This serves as an incentive for more capacity and innovation in the rail construction industry.
This directly benefits passengers, for example through improved accessibility and additional weather protection on platforms. Additional funds are also available to ensure that construction sites have less impact on rail transport and customers. Capacity is preserved during construction by temporary bridges, additional switches, or signals that ensure additional flexibility, among other things. New converter plants ensure that electricity from renewable energies is fed into the traction current network.
The Performance and Financing Agreement focuses on comprehensive transparency and supervision. The Federal Railway Authority monitors how the agreement is implemented. 17 criteria were agreed to evaluate the success of the agreement. If DB Group fails to meet the contractual requirements, penalty payments will be imposed. Quality indicators record the state of the network, how many bridges have been renovated, the amount of funds being invested in maintenance, and much more.
The LuFV III can be found in full at www.bmvi.de (only available in German).