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German railways Deutsche
Bahn (DB) was created on
January 1, 1994 following the
merger of east and west
German railways which created
a government-backed private
joint stock-company with
hundreds of subsidiaries.
While the federal government
remained the nominal owner
its only role was to take on
historical debts and £4 billion
in yearly pension obligations.
As a result of this
arrangement DB is not subject
to public sector law. However,
it has become global giant in
freight logistics and passenger
transport buying up Britain’s
largest rail freight operator
EWS in 2007 and rail and bus
operator Arriva in 2010, as
well road hauliers around the
world in more than 150
countries.
German rail infrastructure
has also become a byword for
underinvestment, catastrophic
decline and delays. The
Sunday Times recently
revealed that Swiss railways
was now refusing to let
German trains access to its
network because of delays
caused by Germany’s
collapsing rail infrastructure.
Swiss Transport authority
head Peter Fuglistaler said:
“Half of the international trains
from Germany arrive late in
Basel. If we let them continue,
it would mess up the Swiss
timetable”.
So how did the myth of
German railway efficiency
collapse so profoundly? The
answer lies in the neo-liberal
dogma pervading DB which
ensures little or no
governmental or democratic
control.
Back in December 1993
German MPs had voted
overwhelmingly to merge
Bundesbahn, west German
railways, and the former east
German network Reichsbahn
and turn them into a private
stock company, known as
Deutsche Bahn AG (DB AG).
DB AG was to be three new
stock companies, for
passenger transport, freight
transport and a third for
infrastructure. This form of
deregulation removed ‘civil
servant’ status from nearly half
of all rail employees who had
previously enjoyed a lifetime
no compulsory redundancy
guarantee.
At the same time, a Tory
GERMANY OFF
THE RAILS
Thirty years of underinvestment and deregulation has left
the German rail network on the brink of collapse
CRISIS: The Sunday Times exposed the growing crisis at DB