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German regulator moves to curb Deutsche Bahn dominance on key rail routes

Germany's network regulator is planning to limit Deutsche Bahn’s utilisation of long-distance rail on certain congested 'routes', potentially opening up the market to competitors including Italy's 'Italo' .

The Bundesnetzagentur made a presentation of the proposal on Tuesday to its rail infrastructure advisory council. Before the draft becomes binding, it must be discussed with the council.

This follows a complaint from the Italian high-speed railway operator Italo. Italo wants to enter Germany's market in 2028, but says it needs predictable access.

The German railway company, Deutsche Bahn, controls?roughly 95% of Germany’s long-distance market. It is battling chronic delay while undergoing a decade-long network upgrade that will cost approximately EUR150 billion ($171billion).

'MINIMUM LEVEL ACCESS'

The cap would apply to long-distance routes that are formally 'constrained'. It would be enforced by DB InfraGO (the infrastructure unit of Deutsche Bahn), which operates stations and tracks under the supervision of Bundesnetzagentur.

The regulator stated that DB InfraGO would be able to allocate up to 60-75% of this capacity to a single user.

Klaus Mueller, President of Bundesnetzagentur, said that the measure would ensure "a minimum level of competition for clock-face long distance services."

DB InfraGO stated that the proposal 'would worsen existing capacity constraints and bottlenecks, with competition concentrated primarily on'major routes' while key rail hubs still lack capacity to provide wider regional connections.

It stated that it would review the draft decision, and examine its options.

Italo welcomed the proposal, calling it "a clear sign" that Germany is ready to compete in high-speed rail.

According to the Bundesnetzagentur?Italo plans on investing EUR3.6 billion and ordering about 30 Siemens high speed trains to operate services along the Munich-Berlin route and the Munich-Dortmund route.

(source: Reuters)