German rail companies start lawsuit after planned 16,2% TAC increase

Eleven German rail companies are going to court over an approved 16,2 per cent track-access charge (TAC) increase. The new TAC rate would go into force from mid-December, but the eleven companies are now aiming to prevent that from happening.
The approved 16,2 per cent TAC increase would be a bigger jump than all increases of the past five years combined, says rail freight organisation Die Güterbahnen. However, such an increase may not take place after all. The eleven companies, which include DB InfraGO, DB Cargo and long-distance passenger operator DB Fernverkehr, are going to court dispute the record TAC jump’s legality.

Die Güterbahnen explains that the path price revenue must cover all of the operating costs of Germany’s infrastructure manager DB InfraGO. In addition, there is a profit requirement in the form of a fixed return on investment. With the TAC increase, path price revenue is expected to amount to 600 million euros. However, DB InfraGO does not incur any operating costs. For this reason, the rail companies now aim for “a fundamental change in the system for determining route prices set out in the 2016 Railway Regulation Act”, according to Die Güterbahnen.

The 2016 Rail Regulation Act

The rail freight organisation explains why the 2016 Act is such a thorn in the side of the eleven companies: “Due to a legal cap on the increase in route prices for local rail passenger transport, the other types of transport – freight and long-distance passenger transport – have to accommodate significantly higher route price increases in their end customer prices.” This has also prompted the DB subsidiaries to join the lawsuit. Since the prices have to be approved by the federal Bundesnetzagentur, the lawsuit is formally directed against that agency.

Rail suffers from TAC increase

Die Güterbahnen is concerned about the TAC jump’s negative impact on the rail freight industry. DB InfraGO charges a fee for every kilometre travelled on the network. At the moment, operators pay 3,21 euros per kilometre, but this will grow to 3,73 euros from mid-December onwards.

“We would pay a lot more money for less performance. The state of the network has not improved and the obstacles in the network are getting bigger and bigger due to more and more construction sites. This means that rail companies’ operating costs are increasing anyway”, says Güterbahnen CEO Ludolf Kerkeling.

Rail’s competitiveness vis-à-vis road transportation stands to worsen from these increases, says Kerkeling. “The path price support cut at the end of 2023 has massively damaged and weakened the freight railways. Companies cannot pass on further cost increases to end customers, and numerous transport operations become uneconomical and are switched from rail to road.” When customers switch from rail to road, CO2 emissions also skyrocket, warns Die Güterbahnen.

Also read:

Leave a Reply

Your email address will not be published. Required fields are marked *