The German Federal Government has officially approved the reduced transport budget for 2024. After some amendments in the sums to be cut and the sectors they will affect, the German parliament greenlit it. In addition to reduced financial support for the current year, the German rail sector will also be affected by cuts in long-term infrastructure investments.
The only thing remaining now is a final parliamentary vote to approve the controversial budget as a whole on a federal level. This process will probably be concluded this week.
On top of reductions in track access charges subsidies, single wagonload transport support and the Future of Rail Freight Transport programme, amounting to approximately 186 million euros, the German rail sector will also suffer from cuts in long-term infrastructure investments planned for 2024-2027.
Network expansion at stake
For 2024-2027, the German government pledged a 45 billion euro budget for rail projects as part of its financial strategy. The funds were expected to be made available via the increased road truck tolls that Germany started implementing in 2024. Nevertheless, with the transport budget almost in place, it seems that the rail sector will be deprived of a substantial part of the funds.
According to the railway association Die Güterbahnen, the 2024-2027 budget will be reduced by 17 billion euros. This means that out of the estimated 45 billion euros, only 28 will be invested in rail infrastructure projects in the coming three years.
The impact of such cuts will probably be felt in terms of expanding the network and building new infrastructure. Network upgrades and renovation, also planned for summer 2024, will continue apace, and their financial viability seems to be secured. However, this does not apply to projects that concern the construction of new lines, for instance.
Neele Wesseln, managing director of Die Güterbahnen, commented that in the current situation, the transport budget lacks short and long-term ambition and that the German rail freight sector needs to deal once again with broken promises.
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