Network 21: Impact on rail freight traffic

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Network 21: Impact on rail freight traffic

Fricke, E / Pohl, M

Following the rail reform in Germany, Deutsche Bahn remained in the ownership of the German State but the company was divided into a number of subsidiaries, including long-distance and regional operators and DB Netz AG, the infrastructure manager. This market-driven organization is obliged to recover completely the costs of infrastructure provision by levying utilization charges (principle of full cost coverage). Hence, the market conditions of railway undertakings, such as those providing rail freight services, are at least partially determined by the level of costs of providing the infrastructure.

The current high level of costs at DB Netz AG must be significantly reduced if the railways are to hold their own against intense competitive pressure from road and waterways. It will not be possible to achieve this goal purely by continuing with on-going rationalization measures and additional investment in the track infrastructure (new and upgraded lines). Both the rail reform goal of switching more traffic to rail and the purely commercial interests of DB Netz AG necessitate a comprehensive increase in productivity and enhancement of product at realistic market prices.

In order to achieve these objectives, DB Netz AG chose a novel form of network management which relies strongly on the separation of traffic flows of different types. This was defined as the Network 21 strategy. The Network 21 strategy will also enhance the ability of operators to deliver both passenger and freight services in a more timely manner.