STATION INITIATIVE OF DEUTSCHE BAHN STATION&SERVICE

Marcus Paul 17-18 October 2013 Head of Finance/Real Estate, DB Station&Service, Germany Session 2-A "Business and services" Today, our portfolio comprises 5,350 stations and is subdivided into seven categories 2

active stations (∑ 5,350) categories & examples no. of travellers per day

21 1 Frankfurt ~ 3.1m Foto: Christian am Main Bedeschinski

82 Hamm 2 (Westf.) ~ 2.5m Foto: Stefan Klink

Baden- 220 3 Baden- ~ 3.0m Foto: DB AG

592 4 Montabaur ~ 3.9m Foto: DB AG

Rostock 1,034 5 Lütten ~ 2.1m Foto: DB AG Klein

2,523 6 Hopfgarten ~ 1.1m Foto: DB AG

878 7 Außenried ~ 0.1m Foto: DB AG

Passenger volume as average values over different periods Mr. Paul – DB Station&Service – Station initiative 17-18 October 2013 In the last years few new stations were built – these however received high acceptance in society 3

Building of new stations DB 2005-2010 Press comments on opening of new stations

Number of stations Average 380 “We want to be there where people Passengers per live, shop and work. Only then public 18 day1 transport serves its purpose. “New Station Koblenz-City: In the heart 13 13 of town – closer, faster, in the 11 11 center.“ “Increasing quality of life by new track 6 connection now also in Bielefeld-Senne.“

“Happy customers in Bruck-mühl! Deutsche Bahn builds a new station in 2005 2006 2007 2008 2009 2010 2012.“

Drivers for building of new stations were DB improves the mobility in society and usually local authorities improves the attractiveness of the region

1 Adjusted average number of passengers 2010, n.a. for 11 stations Mr. Paul – DB Station&Service – Station initiative 17-18 October 2013 The station network in Germany and the settlement areas have changed in the course of time 4

Status Quo  Railway stations are not lo- cated there, where people live and work today  Distances more than 1.2 km (city area) or 2.4 km (country Suggestion area) to the next railway station are hardly accepted anymore New construction of Solution especially smaller  Systematic construction of railway stations in new railway stations close to Germany recruits origins and destinations of sufficient size many new customers  Use of sprint strong locos allow additional stops without significant loss of

Settlement Areas Existing railway stationtravel time compared with Transport volume New railway station the satus quo Railway track Commuting area

Source: Project Stationsoffensive Mr. Paul – DB Station&Service – Station initiative 17-18 October 2013 To identify possible new railway stations modeling methods and forecast of demand are applied 5

Model Method Result

Detailed modeling of the Forecast of demand Suggestions for new railway railway network in Germany Travelers (entrance and exit) stations Input variables minus cannibalization effect Objective: Development plan 30,000 settlement areas Estimation of construction of railway stations in Germany 250,000 relations in the costs and current costs (assessment of timetable and Estimation formula for station origins-destinations-matrix quantity survey of platforms, building land 34,000 track kilometers improvements, and if so, construction) 5,400 existing railway stations elevators 30,000 possible railway Estimation of costs for cleaning stations Bullendorf and maintenance Optimization Hittbergen

Echem Handorf Sankt_Dionys Wittorf Brietlingen procedures Neu_Wittorf Lüdersburg Moorburg Selection of stations, which

Bardowick Scharnebeck Adendorf Rullstorf

Boltersen make sense from an Vögelsen Neetze Nutzfelde Kandidaten infrastructural and economic Süttor Reppenstedt Bestehende Station Holzen Reinstorf 10 km point of view Consideration of interdependencies between railway stations Source: Project Stationsoffensive Mr. Paul – DB Station&Service – Station initiative 17-18 October 2013 A detailed investigation for each station and its surrounding verifies the potential 6

Source: DB Regio AG, Streckenkarte Bayern, November 2011 Source: Google Maps Deutschland, May 2013

Source: Google Maps Deutschland, May 2013 Source: Google Maps Deutschland, May 2013

Mr. Paul – DB Station&Service – Station initiative 17-18 October 2013 The analysis includes also information on other carriers such as buses and a detailed planning draft 7

Source: OpenStreetMap, May 2013 Source: OpenStreetMap, May 2013

Source: Kehrer Planung GmbH, May 2013 Source: flimasWEB, May 2013

Mr. Paul – DB Station&Service – Station initiative 17-18 October 2013 The target is a comprehensive master plan of possible new railway stations in Germany 8

Current approach  Automatic model optimization to find Station initiative possible train stops within DB rail network (basic set)  Rough analysis with infrastructural study to identify stations that are practicable  Detailed analysis & validation with manual check of passible railway stations New railway  Assessment of timetable feasibility stations for and construction Germany Target  Comprehensive master plan of possible new railway stations  Indication where to invest in sustainable infrastructure

Mr. Paul – DB Station&Service – Station initiative 17-18 October 2013 More revenues from ticket sales than additional costs – an approach for other railway companies?! 9 revenues - costs = profit customers - previous customers costs TOCs (for sales and energy) chance for other railway X travel distance [km] companies: generate more customers and maintenance and . more profit by building new = tranport volume [Pkm] cleaning of stations stations along the existing railway-network capital costs (interest . shifting of demand (from private X revenue [€ p. Pkm] and depreciation) car to public transport) . good publicity and positive image effects ≈ total revenues total costs

Mr. Paul – DB Station&Service – Station initiative 17-18 October 2013 10 ...Thank you

for your kind attention

Marcus Paul DB Station&Service AG Europaplatz 1 10557 Berlin

www.bahnhof.de | www.deutschebahn.com The model results were reviewed in a multi-stage filter process 11 Backup Filter process of possible railway stations

Automatic model 1 optimization with SPOT1 30.000

2 Rough analysis

2.200 3 Detailed analysis & validation

800 300-400

Possible train stops possible railway possible railway possible railway within DB rail stations, stations stations network (basic set) which make sense manually checked timetable and from an infrastructural construction 1 SPOT: Station Planning and Optimization Toolpoint of view checked Source: Project Stationsoffensive (current estimation) Mr. Paul – DB Station&Service – Station initiative 17-18 October 2013 There are different sources of financing

12 Backup

Traffic station Financing of Financing of  train-stop fees investments operations  regulated services DB Station&Service  public funding AG (equity capital) EU (EFRE) Federal government DB Station&Service (LuFV etc.) AG (station fees) Land government Länder (Unterhaltsausgleich) (Local transport financing Traffic station Traffic act [GVFG] etc.) Kommunen Local authorities (Leistungsübernahme)

DB Station&Service AG DB Station&Service AG (rental fees) Investors / Tenants Investors / Tenants Passenger building Building  rental fees Passengers  mostly non-regulated services  low amount of public funding Mr. Paul – DB Station&Service – Station initiative 17-18 October 2013