Italian carrier becomes first private competitor of Deutsche Bahn

Italo Holding, a Croatian-based transport company, has announced its plan to enter the German railway market as the first private competitor to Deutsche Bahn. The company has signed a €3 billion agreement with Siemens Mobility to purchase and maintain high-speed trains needed for its entry into the market by mid-2028. Under the terms of the deal, Italo will acquire 26 fast trains from Siemens, with an option to buy another 14. These trains will be manufactured at Siemens' facility in Krefeld, Germany. The agreement also includes a 30-year maintenance contract, which will be carried out at Siemens' depot in Dortmund. In late April, Italo Holding revealed plans to invest a total of €3.6 billion in Germany to establish itself as the first private competitor to Deutsche Bahn on major intercity rail corridors. This investment covers a wide range of activities including infrastructure upgrades, staff training, and modernization of stations and IT systems to ensure operational readiness. According to reports from the Italian business newspaper Il Sole 24 Ore, the program spans three decades and aims to create favorable conditions for the launch of operations. The management of Italo expects the company to create approximately 2,500 jobs in Germany, taking into account the entire supply chain. Operations in Germany are scheduled to begin around mid-2028, with the company planning to operate 50 daily routes connecting 18 cities along two main German rail corridors. On the Munich-Frankfurt-Cologne-Dortmund route, Italo intends to run services every hour, while on the Munich-Berlin-Hamburg corridor, services will be every two hours. The German news agency DPA noted that both routes are highly profitable due to their connection of key transportation hubs. A major obstacle to Italo's entry into the German market was removed with a June decision by the German federal network regulator. The ruling requires DB InfraGO, the subsidiary of Deutsche Bahn responsible for railway infrastructure, to allocate between 25% and 40% of capacity on key intercity lines to competitors starting from a certain point. This move is expected to benefit passengers, as increased competition could lead to lower ticket prices according to the Federal Network Agency. The federal regulator supported the entry of private competition into the passenger rail sector, although media have raised concerns over the funding of less profitable routes and access to station infrastructure. The regulatory change marks a significant shift towards greater openness in the German rail sector, potentially setting a precedent for future private entrants. As Italo prepares for its debut, the focus remains on ensuring smooth integration into the existing rail network and delivering reliable service to passengers.