Evelyn Palla, CEO of Deutsche Bahn (DB), has warned that the entry of new operators into the German long-distance market must be accompanied by a clearer policy framework to avoid “uncontrolled” competition. The statements come after the announcement by Italian private operator Italo, which plans to launch high-speed rail services in Germany starting in 2028.
Italo, the Italian private high-speed operator controlled by the MSC Group along with other investors, previously announced a plan to enter the German market with an estimated investment of EUR 3.6 billion. The company is targeting routes such as Munich–Frankfurt–Cologne–Dortmund and Munich–Berlin–Hamburg, some of the busiest rail corridors in Germany.
The plan has sparked a sensitive debate regarding infrastructure access, route allocation, and the future of competition in the German long-distance market, where Deutsche Bahn remains the dominant operator.
Deutsche Bahn says it does not reject competition
Evelyn Palla said that Deutsche Bahn does not oppose competition in principle, but warned that it must be organized in such a way that the benefits reach the entire country, not just passengers in major cities.
“Competition is not an end in itself, and we must be careful,” Palla said, according to German media. “We must ensure that these benefits truly reach all people in Germany, not just a few. Not just a few in the major cities, which already have excellent mobility options today.”
The head of Deutsche Bahn warned that, without clearer rules, there is a risk that profitable routes will be taken over by new operators, while connections to less commercially attractive areas could suffer.
According to her, the main problem with the German rail system is not competition itself, but the state of the infrastructure. Palla emphasized that, even in a scenario with multiple operators, Germany must maintain “a generally reliable and regular system for everyone in Germany.”
Italo calls for predictability regarding routes
Italo’s entry into the German market is contingent on access to infrastructure. The Italian operator wants long-term contracts for route usage so that investments in trains and operations can be planned with greater certainty.
In Germany, such framework contracts have not existed since 2017. Trainsets are allocated annually as part of the timetable planning process to allow for more flexible scheduling.
Italo is initially targeting hourly service on the Munich–Frankfurt–Cologne–Dortmund route and a service every two hours on the Munich–Berlin–Hamburg route. The company has also requested a minimum percentage of capacity reserved for new market entrants.
The requests have been submitted to the Bundesnetzagentur, the German network regulatory authority, which also oversees the allocation of rail capacity. A decision has not yet been announced.
DB InfraGO Rejects Special Rules for a Competitor
Philipp Nagl, head of DB InfraGO, Deutsche Bahn’s infrastructure company, has spoken out against special rules favoring a single competitor. DB InfraGO is responsible for Germany’s rail infrastructure and train path allocation, under the supervision of the regulatory authority.
Deutsche Bahn’s position reflects the tension between two different objectives. On the one hand, Germany wants more competition and more attractive services for passengers. On the other hand, the network is already heavily strained, and the routes targeted by Italo are among the busiest and most commercially valuable.
For Italo, predictability is essential. The company has announced that it wants to invest in new trains, likely from the Siemens Velaro family, the same technical platform used for the ICE 3neo. Without guarantees regarding access to infrastructure, the timeline for the contract with Siemens and the launch of operations in 2028 could be affected.
The stakes: competition on profitable routes
Italo’s entry could become one of the most important tests for the opening of the German long-distance market. The Italian operator is attempting to replicate the model applied in Italy, where competition with the FS group has led to an increase in supply in the high-speed segment and pressure on fares.
In Germany, however, the situation is more complicated. Deutsche Bahn holds a dominant share of the long-distance market, but also operates an extensive national network, where profitable routes help sustain a broader system. Palla’s criticism specifically targets the risk that new operators will focus on the most attractive routes without similar obligations regarding broader connectivity.
The DB chief thus called for “better political conditions” to prevent unchecked competition. In her view, we must not reach a situation where a few urban routes are served even more intensively, while rail connections in less populated areas are weakened.
A debate with European implications
The Italo case in Germany goes beyond the issue of a simple market entry. It raises questions about how competition in long-distance rail transport should be organized within an already congested network, with frequent construction work, punctuality issues, and significant investment needs.
For passengers, competition could mean more trains, better service, and more attractive fares. For the incumbent operator, the risk is that liberalization will favor only the most profitable routes, without strengthening the entire system.
For now, the Italo project remains dependent on decisions by the German regulatory authority and clarification regarding route access. If the plan moves forward, Germany could become the next major European market where competition in the high-speed segment begins to directly challenge the incumbent operator’s position.
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