The German passenger association Pro Bahn is calling on the government in Berlin to ensure fair and regulated competition in the long-distance rail market, as the Italian operator Italo plans to enter the German market starting in 2028. The organization warns that new operators should not focus solely on the most profitable routes between major cities.
The German passenger association Pro Bahn is calling on the federal government to establish clear rules for competition in the long-distance rail market, in light of Italian private operator Italo’s plan to enter the German market starting in 2028.
The organization argues that fair and regulated competition can lower prices, improve service quality, and lead to an expansion of rail services. At the same time, Pro Bahn warns that liberalization must not result in operators focusing solely on the most commercially attractive routes.
Italo is targeting, in particular, corridors between major German cities, where demand is high and where competition with Deutsche Bahn’s ICE services could become direct.
“Competition is not an end in itself”
Michael Koch, vice president of Pro Bahn, stated that the association is not opposed to competition in rail transport, but that it must bring benefits to passengers nationwide.
“We have never opposed competition on the railways; on the contrary,” said Michael Koch. He added, however, that “competition is not an end in itself,” but must benefit passengers throughout the country, not just those traveling on major routes.
“If Italo’s entry into the market means that, in the future, three operators will compete for passengers on the most popular routes, while Chemnitz, Allgäu, or larger regions in eastern Germany are left on the sidelines, not much has been gained,” warned the Pro Bahn representative.
The association is calling on the German government to create a federal authority capable of regulating long-distance rail transport and organizing routes in a competitive and equitable manner. In Pro Bahn’s view, such a structure would prevent operators from focusing exclusively on the most profitable lines.
Italo Targets Major German Corridors
Italo, a private Italian 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 3.6 billion EUR.
The company is targeting routes such as Munich–Frankfurt–Cologne–Dortmund and Munich–Berlin–Hamburg, some of Germany’s most important rail corridors.
Italo’s plan calls for connecting 18 cities across a network of approximately 1,300 km, with up to 50 daily services. The operator is considering purchasing 26 new trains from Siemens, with an option for an additional 14 units.
The trains would be from the Siemens Velaro family, the same technical platform used for the ICE 3neo, and could reach 320 km/h.
Club Feroviar has previously reported on Italo’s plan to invest in Germany and on the conditions upon which the launch of operations depends, including access to infrastructure and route predictability.
Deutsche Bahn Warns of “Uncontrolled” Competition
Pro Bahn’s position comes after the management of Deutsche Bahn also called for a clearer political framework for new operators entering the German long-distance market.
Evelyn Palla, CEO of Deutsche Bahn, previously warned that new competitors should not take over only the profitable routes between major cities, while connections to less commercially attractive areas could suffer.
The DB chief said that the incumbent operator is not opposed to competition in principle, but that it must be organized in such a way that the benefits reach the entire country, not just passengers in major cities, where mobility options are already robust.
The stakes are all the higher given that Deutsche Bahn remains dominant in the German market. Approximately 95% of rail connections in Germany are operated by the state-owned company, while competitors are present mainly at the regional level or on specific routes.
The EVG union warns about smaller routes
The German railway union EVG recently warned that Italo’s entry into the market could reduce Deutsche Bahn’s profits on its main routes.
According to ARD, the union argues that, in such a scenario, DB might be forced to cut services in at least 16 smaller cities if revenues from profitable corridors were affected.
The debate reflects the tension between two objectives. On the one hand, Germany wants more competition, more attractive services, and better fares for passengers. On the other hand, profitable routes help sustain a more extensive national network, including in areas where demand is lower.
Italo Calls for Predictability for Investments
For Italo, entering the German market depends primarily on access to infrastructure.
The Italian operator has called for greater predictability in route allocation so that investments in trains, staff, and operations can be planned for the long term.
In Germany, long-term framework contracts for train paths have not existed since 2017. Capacity is allocated annually as part of the timetable-setting process, which provides flexibility to the system but complicates major investments by new operators.
Italo has also requested a minimum percentage of capacity reserved for new market entrants. The requests were submitted to the Bundesnetzagentur, the German network regulatory authority, which also oversees the allocation of rail capacity.
So far, no decision has been announced.
A Test for European Rail Competition
Italo’s entry into Germany could become one of the most important tests for the liberalization of the European long-distance rail market.
In Italy, Italo has transformed the high-speed market through direct competition with the FS Group, leading to increased supply and downward pressure on fares. The company is now seeking to apply this approach to the much larger—but also more complex—German market.
The German network is heavily strained, plagued by frequent construction work and punctuality issues, and the major corridors targeted by Italo are already among the busiest.
For passengers, competition could mean more trains, better service, and more attractive prices. For the German rail system, however, the challenge is to ensure that this competition does not merely consolidate profitable routes but contributes to a better overall service nationwide.
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