Railway leader braces for upcoming obstacles
The search is on for a new CEO to lead Deutsche Bahn (Bahn), Germany's national railway company, following the dismissal of Richard Lutz in August 2025. The incoming CEO will inherit a range of operational, infrastructural, political, and financial challenges, as the company strives to improve its performance and reputation.
Patrick Schnieder, the Federal Transport Minister, has set ambitious goals for the Bahn. In a statement, Schnieder emphasised the need for the Bahn to be punctual, safe, clean, faster, leaner, more agile, and more economical. To achieve these objectives, the new CEO will need to secure adequate and reliable funding from the government for infrastructure improvements.
The focus is currently on renovating the existing network, with a lack of funds for new and expansion projects. The government has pledged to restructure DB to address the massive investment backlog, estimated in the billions, due to decades of neglect. The "Germany timetable" aims to connect main long-distance routes at half-hourly intervals, but this requires significant investment.
One of the most pressing challenges the new CEO will face is improving punctuality. Deutsche Bahn has long struggled with delays and unreliable service, and Schnieder's call for "structural and personnel reorganisation" signals urgent reforms are needed. The dilapidated, heavily used tracks are the main reason for the unreliable trains, and around 40 routes are set to undergo comprehensive renovation by 2036.
Another significant challenge is managing the upcoming wage negotiations with the German railway and transport union (GDL). The collective bargaining agreement expires at the turn of the year, and the next round of negotiations is approaching. Labor disputes can affect service reliability and the company’s financial stability, making managing these relations crucial for the new leadership.
The new CEO will also need to address the issue of customer satisfaction. Punctuality is a persistent issue for the Bahn, with less than two-thirds of long-distance stops being made on time. Some transport experts have criticised the concept of closing routes for renovations, but the approach is generally accepted within the industry.
DB Cargo, a transport subsidiary of Deutsche Bahn, has been ordered by the EU Commission to return to profitability as early as next year. The poor results are mainly due to the non-profitable single wagon traffic, a crucial service for industries and climate goals.
Federal Transport Minister Schnieder plans to unveil a new Bahn strategy on September 22, with a focus on customer satisfaction. The outcome of the wage negotiations with the GDL could potentially burden the start of the new railway CEO, especially if it leads to train cancellations.
The expected successor of Richard Lutz has not yet been appointed, and the search for a suitable candidate may take longer than anticipated, as several railway experts have already reportedly rejected the job offer. The new CEO will need to navigate these challenges skillfully to restore Deutsche Bahn's performance and reputation.
