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Railway administrator confronts forthcoming difficulties

Railway chief, Richard Lutz, is stepping down, leaving his predicaments for his successor to handle. Can the incoming leader overcome the challenges better?

, and Administrator

2025 September 2 . 3:15 AM

3 min read

Challenges Lying Ahead for the Prospective Railway Manager

Railway administrator confronts forthcoming difficulties

In a significant development, Deutsche Bahn's (DB) CEO, Richard Lutz, has stepped down from his position, leaving a vacant seat that the transport industry and associations are eagerly waiting to fill. The search for a new leader is underway, but the process might take longer than expected due to rejections by railway experts [1][3][4].

The current situation at DB is described as "dramatic" concerning punctuality, customer satisfaction, and profitability, highlighting the urgent need for comprehensive reforms [2]. The new CEO will inherit a company that has been posting losses for years and is undergoing a restructuring program to cut jobs and increase profitability.

One of the key issues facing DB is the massive investment backlog in the high double-digit billions due to decades of neglected infrastructure [1]. Around 40 particularly heavily used lines are set to undergo comprehensive modernization by 2036, with no incremental repairs during operation, but instead, months of full closures for extensive renovations [1]. The focus is mainly on renovating the existing network, with funds lacking for new and expansion projects.

The development of DB's infrastructure and operations heavily depends on political support and government funds. Federal Transport Minister Patrick Schnieder has called for structural and personnel reorganisation at DB, indicating a leadership change is underway [1]. Schnieder plans to unveil a new DB strategy on September 22, with a focus on customer satisfaction [1].

The new CEO will need to secure the necessary funds in the coming years to continue this existing concept. The DB cites worn-out, heavily loaded tracks as the main reason for unreliable trains [1]. Some transport experts have criticized this concept, particularly due to the full closures, but the approach is generally supported in the industry [1].

Regarding plans to improve punctuality, customer satisfaction, infrastructure, financial situation, and wage negotiations with GDL, no specific new CEO’s plan has been disclosed yet [3]. The collective agreement with GDL, a union often resorting to confrontation, expires at the turn of the year, and the next round of wage negotiations is approaching [1].

The German transport stakeholders and associations like PRO BAHN have stressed the need for stronger oversight by the Ministry of Transport along with clear guidelines and reliable financing [3]. They also advocate for transparency and increased customer focus, a new communication style that openly acknowledges problems and pursues real solutions, structural reform to overcome resistance at middle management layers that hinder innovation, and government responsibility for proper financing and active management in passenger interests [3].

The "Germany Plan" aims to eventually connect main axes of long-distance traffic at half-hour intervals, improving transfer opportunities and shortening travel times [1]. DB Cargo, the loss-making transport subsidiary, must return to profitability next year as determined by the European Commission [1].

Punctuality is a persistent issue at DB, with only about two-thirds of long-distance stops being made on time [1]. Despite receiving more funds recently, outgoing CEO Lutz stated that they wouldn't make DB truly future-proof [1]. Single wagon traffic, which is not profitable despite federal funding, is crucial for industries such as steel, chemicals, and building materials, as well as for climate goals [1].

Possible candidates for the vacant CEO position include DB Regio CEO Evelyn Palla, former Finance Minister Jörg Kukies, and Siemens Mobility CEO Michael Peter [1]. The identity of the new CEO will be crucial in steering DB towards a sustainable and profitable future.

[1] - [Source 1] [2] - [Source 2] [3] - [Source 3] [4] - [Source 4]