GERMANY’s Federal Network Agency (BNA) has issued its final decision regarding entry to the long-distance passenger network, confirming that no single actor will be allocated more than 60-75% of available capacity, effectively guaranteeing competition with the long-distance subsidiary of incumbent German Rail (DB) on key routes. BNA says the decision has the potential to transform long-distance transport in Germany.
Italian private operator, NTV-Italo, responded to the decision by signing a contract with Siemens Mobility on July 20 for 26 eight-car Velaro Novo Multi System high-speed trains.
Italo confirmed its plans to enter the German long-distance passenger market, including purchasing the new fleet and establishing a German subsidiary, Italo Holding, in April. It is aiming to launch operations in Germany in mid-2028 with the decision to proceed with the contract with Siemens contingent on securing the access to the network.
Italo initially plans to operate up to 50 services per day between Hamburg, Berlin and Munich, and Munich - Cologne - Dortmund in direct competition with DB, which currently possesses a 95% share of the long-distance market in Germany.
The contract with Siemens is worth around €3bn, and in addition to the 320km/h trains, includes a 30-year full-service agreement. There is also an option for another 14 trains.
“We intend to offer German passengers greater choice, more frequent services, fair prices, and high-quality service,” says Gianbattista La Rocca, Italo CEO.
The decision
BNA says the decision, which was a response to a complaint launched by Italo seeking guaranteed access to the German network, effects heavily used sections with designated capacity limits. It states that there are several of these and that the number will increase in the future. For example, important hubs such as Munich and Frankfurt are expected to be included at the 2028 timetable change in December 2027, the first timetable to take into account the new competition rules.
In accordance with the BNA’s requirements, infrastructure manager DB InfraGO is obliged to include a competition cause in its infrastructure usage terms and conditions. A draft of these terms will be submitted to the agency to review in the autumn. It may then request amendments ahead of the development of the 2028 timetable.
“We carefully examined all the arguments, but in our decision we are sticking with the regulation we presented at the end of June,” says Klaus Müller, BNA president. “We are convinced that our decision will stimulate competition in long-distance rail transport.”
Response
DB has said that it “will thoroughly examine and evaluate the decision of the BNA,” while a statement from DB InfraGO to the BNA, cited by domestic media, indicates that it considers the decision “legally questionable.”
In the statement, the infrastructure manager accuses the authority of “persistent procedural and investigative errors,” and argues that there is no factual basis for regulatory intervention.
Regional governments have also warned that increasing the attractiveness of lucrative routes between major cities may detract operators from serving less popular stations and rural areas.
However, Mofair, which represents private operators, says that competition in the German long-distance market from open-access operators such as FlixTrain, has already led to higher quality and lower prices for regional transport operators, as well as more affordable fares in long-distance travel.
Italo’s new trains
Italo’s Velaro fleet is based on the ICE3neo operated by DB and is able to run under four different power supply systems. The trains will have seats for 450 passengers across three types of accommodation - Club Executive, Prima Business and Smart. They will also feature a bistro and will be equipped with Starlink antenna integration, providing high-speed satellite internet connectivity for passengers.
Siemens will manufacture the trains in Krefeld and maintain the fleet at its depot in Dortmund. Digital services, including the Railigent X platform and fleet monitoring, will support predictive maintenance and operational efficiency throughout the fleet's lifecycle.
In addition to the trains and maintenance agreement, the total €3.6bn investment by Italo includes recruitment and training of 2500 staff along with investment in stations and IT infrastructure. It has already obtained a passenger operator’s licence and was reported in April to be in the process of obtaining its safety certificate.
“Following the BNA’s decision, we are now ready to take the first concrete steps to launch services in 2028, from hiring and training staff to developing the industrial, operational, and commercial structure of this new chapter dedicated to Germany,” La Rocca says.
“We thank our shareholders - MSC, GIP (part of BlackRock), Allianz, and our founding partners - for their strong support throughout this phase.”
“Today marks the beginning of an important chapter for European rail mobility,” says Luca Cordero di Montezemolo, president of Italo Holding. “Italo's arrival in Germany is not just the arrival of a new operator, but a concrete step towards a single transport market, capable of overcoming the patchy liberalisations that still fragment Europe.”
