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Competition Figures the Crisis Has Clearly Shown the Importance of Rail to Passenger Trans- Port and to the Logistics Systems That Supply the Economy

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Competition Figures the Crisis Has Clearly Shown the Importance of Rail to Passenger Trans- Port and to the Logistics Systems That Supply the Economy 2019/20 Competition figures The crisis has clearly shown the importance of rail to passenger trans- port and to the logistics systems that supply the economy. Even in excep- tional circumstances, the rail industry can ensure stable and extensive provi- sion of essential mobility and logistics services. Railways must continue to be part of the solution in overcoming the coronavirus crisis and reviving the economy. The economic stimulus package passed by the German government provides an important Dear readers, impetus in this respect. Rail is key to active climate protection We witnessed a year of mixed for- and sustainable mobility. It is a fun- tunes on Germany’s railways in 2019. damental part of the German Climate Amid continuing strong inter- and Action Plan 2050 and the European intramodal competition and a slow- Green Deal. At Deutsche Bahn, we ing economy, German rail passenger continue to plan for growth and are transport gained market share. maintaining our investment and re- Rail freight, meanwhile, saw its cruitment work as part of Strong Rail, share of the market decline. It was a DB’s overarching strategy. similarly mixed picture for European rail traffic. Sincerely, Ronald Pofalla In 2020, the effects of the Covid-19 pandemic have presented the entire transport sector with major challenges to tackle. 3 Contents Contents 06 Passenger transport 26 Infrastructure 06 German market 26 Use of the rail network 10 Long distance rail in Germany in Germany 12 Regional and local rail in Germany 30 Environment 14 European market 30 Rail’s contribution to protecting the environment 16 Freight transport 17 German market 34 Transport performance data 20 Rail freight transport since 2014 at a glance in Germany 34 Passenger transport 22 European market 35 Freight transport 35 Infrastructure 4 5 Passenger transport Passenger transport German market 2019/20 Transport volume in the German passenger transport market rose slightly in 2019, with rail achieving the highest growth rate. The coronavirus pandemic has had a substantial impact on the market in 2020. Slump in 2020 following moderate volume) rose by 0.1 percentage growth in 2019: In 2019, transport points to 8.9%. The number volume in Germany rose by an esti- of passengers was up 2% to mated 0.9% to 1,126 billion passen- 2.9 billion. ger kilometres (2018: 1,115 billion). Extensive measures to contain the Future performance: The coronavirus pandemic led to a slump coronavirus pandemic will have in demand for all modes of transport a major impact on the market from mid-March 2020. in 2020. A preliminary estimate by the German Federal Statistical Rail raises market share in 2019: Office puts the decline in pas- In 2019, rail recorded the strongest senger numbers for the month growth in transport volume of all of March at around 40% year modes of transport (increase of 2.1% on year. An even sharper impact to 100 billion passenger kilometres). is expected in April before the The expansion of long distance rail market increasingly stabilises in services contributed to this. Rail’s the sub sequent months. market share (measured in transport 6 7 Passenger transport Passenger transport Market share of private motorised Decline in air travel: Transport Market performance in 2019 compared with Modal split in 2019 transport stagnates: A 1.6% fall in volume for German domestic flights previous year (measured in transport volume) (measured in transport volume) fuel prices and a 1.4% increase in the fell by 1.5% in 2019. Market share 6.4 0.9 3 vehicle population bolstered demand remained unchanged at 0.9%. In PRT2 Air for private motorised transport in Spring 2020, airlines dramatically 8.9 83.8 1 2019. Transport volume increased by reduced their services due to the Rail PMT an estimated 0.9%, while market share pandemic. Compared with the previ- held steady at 83.8%. In 2020, private ous year, the number of passengers 1) Private motorised transport will benefit from on German domestic flights was motorised further falls in fuel prices and the down roughly 70% and 99% in March +2.1% % transport need for social distancing. Despite this, and April respectively. 2 Public road +0.9% +0.9% transport initial estimates for the full year antic- 3 Air travel –1.5% 0.0% ipate a 15% fall in transport volume. (domestic in Total Rail PMT¹ PRT² Germany) Market share for public road Sources: Destatis, DB Transport volume in Germany Air³ transport declines: In 2019, public (in billion passenger kilometres) 2018 2019¹ road transport reached the previous Private motorised transport 934.8 943.2 year’s volume of around 72 billion passenger kilometres. Market share Rail passenger transport 98.2 100.2 fell to 6.4% (2018: 6.5%). Lower Public road transport 72.1 72.1 demand for scheduled long distance bus services was partly behind this Air travel (domestic in Germany) 10.3 10.1 drop, with the number of passengers Total 1,115.4 1,125.7 falling by 8.0% to 21 million (2018: 23 million). Temporary suspension of services during the coronavirus crisis will further reduce the volume 1 Provisional, partly estimated, figures rounded in 2020. Sources: Destatis, DB 8 9 Passenger transport Passenger transport Long distance rail including on the Berlin–Munich Collapse in demand due to line, and stimulus from the wider coronavirus pandemic: In April, in Germany in 2019/20 economy. Capacity utilisation the number of passengers on remained stable as train capacity DB’s long distance services was increased. approximately 10% to 15% of the Transport volume grows in the New passenger record for DB: normal level, with services reduced long distance market: Transport A total of 150.7 million passengers, More trains, more services: In by around 25%. From mid-May, volume rose by around 4% in 2019 including many new customers, 2019, DB Long Distance expanded DB gradually increased services to 44.7 billion passenger kilometres. travelled on DB’s ICE, IC and EC its services on routes with particu- again in response to demand. The number of passengers grew trains in 2019. That was more than larly strong demand, such as Berlin– FlixTrain suspended operations by 1.9% to over 151 million. In ever before. Transport volume rose Munich, Berlin–Frankfurt am Main in mid-March. The Berlin-Cologne 2020, a sharp decline in patronage by 3.1% to 44.1 billion passenger and Hamburg–Rhine/Ruhr. New and the Cologne-Hamburg is expected due to the coronavirus kilometres. This was primarily ICE 4 trains gradually joined the services were its first routes pandemic. driven by the expansion of services, fleet, with more than 40 of them in to resume in late July. operation since the end of 2019. FlixTrain expanded its German long Rail set to return to growth: distance train network to 25 cities Looking ahead, rail transport in 2019 and planned a new Hamburg– will return to a path of growth. Stuttgart connection for 2020. Expanding long distance services is part of the DB corporate strat- Strong start to 2020: A total of egy, Strong Rail. The goal is to 23.7 million passengers used DB’s grow the number of long distance long distance trains in the first passengers to 260 million a year. two months of 2020. This was an To achieve this, DB Long Distance increase of 8.4% year on year. will progressively expand its An expansion of services with the vehicle fleet and train services. 2020 timetable change boosted demand, as did a reduction in VAT on long distance tickets as part of the German government’s climate package. 10 11 Passenger transport Market shares in regional transport1 Regional and local rail (measured in train services ordered) in Germany in 2019/20 Deutsche Bahn Other railways High competitive pressure in a (down 0.6% on 2018). However, the growing market: There is intense number of passengers rose by 1.7% competition for contracts in regional to 1,972 million. transport throughout Europe. The market in Germany is set to grow 25 competitive tenders: Client further in the coming years. As part bodies concluded 25 contract award 33% 35% 36% of the German government’s climate procedures in 2019, encompassing protection policies, funding for re- around 88 million train kilometres gional and local transport services a year. DB Regio won 15 contracts 67% 65% 64% will increase by a total of EUR 5.2 (around 65% of the train kilometres billion between 2020 and 2031. awarded). Around 49% of the train 2017 2018 2019 2 The coronavirus pandemic has had kilometres newly awarded were a negative impact in 2020. already operated by DB Regio. This Sources: Federal Network Agency, DB by up to 90% during the lockdown. means that the company gained 1 Figures rounded; 2 estimated The local public transport asso- Higher market share for competi- more train kilometres than it lost ciations expect revenue losses of tors: In 2019, DB Regio’s compe- to competitors. around EUR 5 billion in regional titors further increased their share of key workers and enabling a rapid and local passenger transport in of the train kilometres provided in Ensuring mobility despite a slump increase in service levels after the 2020. They welcome the German regional and local rail passenger in demand: During the lockdown restrictions were relaxed. For a government’s one-off EUR 2.5 billion transport from 35% (2018) to an imposed in Spring 2020 to contain time, 90% fewer passengers were increase in funding for regional and estimated 36%. the coronavirus, transport companies travelling in rural areas, while local transport services and the continued to offer up to 75% of their numbers were down by 60% to confirmation that the federal states DB Regio increases patronage: regular service level despite declining 80% in cities.
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