Germany
Study: Public Transport Provides Far More Economic Value Than It Costs – 15/05/2025 – Public transport (ÖPNV) is often seen as underfunded, yet a new commissioned study reveals it delivers significantly more economic value than it consumes in costs. According to the report by MCube, a research initiative of the Technical University of Munich commissioned by Deutsche Bahn, public transport generates an average annual economic benefit of about €75 billion. This figure is nearly three times higher than its operational costs.
The study emphasizes that this is likely a conservative estimate. The actual value creation is probably much higher, as several effects could not be fully captured for methodological reasons.
Direct and Indirect Economic Contributions – MCube’s analysis identifies and quantifies key economic effects of public transport. Using data from the Association of German Transport Companies (VDV), the Federal Statistical Office, and previous studies on gross value added in the transport sector, the study paints a comprehensive picture.
A distinction is made between direct and indirect economic output. Direct value is generated by public transport companies themselves—bus and train operations that create turnover and employment. For instance, a municipal bus operator contributes directly by creating jobs and revenue through its services.
Indirect value, on the other hand, comes from related industries—such as train manufacturers, energy providers, or IT service companies that support public transport operations. These sectors benefit economically from supplying goods and services to the public transport industry.
Broader Economic Impact – The report also highlights external economic benefits. A well-developed public transport system enhances regional attractiveness for tourism, supports commuter mobility, and makes areas more appealing to employers and employees alike. The so-called “commuter effect” alone accounts for more than a quarter of the total value added by public transport.
Limitations and Funding Challenges – Despite its detailed findings, the study acknowledges certain data limitations. The analysis is based on figures from 2019 to avoid distortions caused by the COVID-19 pandemic. Some data points are based on estimates due to a lack of comprehensive statistical backing. Nonetheless, the data used is described as objective, reliable, and methodologically sound.
Ultimately, the report underscores public transport’s dual role—not only as a pillar of sustainable mobility and public service, but also as a significant economic driver.
In Germany, local public transport is funded roughly 50/50 by passenger fares and federal subsidies known as regionalization funds. Although these funds are increasing annually, the transport industry argues that they are no longer sufficient to maintain service levels. Some states are even considering service cuts due to budget constraints.
⬛ Link to report: Wertschöpfung
ÖPNV
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Great-Britain
Eurostar will have a competitor, and it’s no longer a joke – 10/05/2025 – We were still laughing about it a few months ago, but things are getting serious. The Eurostar operator, which is majority-owned by SNCF, will have competition in the tunnel on the route to London. And that’s exactly what Getlink is asking for: more trains for more revenue. There are now several concordant clues. Let’s take a look at them.
British initiatives – The first initiatives came from Getlink and then from the operator of the UK’s only high-speed line: HS1. Recently, Yann Leriche, CEO of Eurotunnel’s parent company Getlink, and Robert Sinclair, CEO of London St Pancras Highspeed, signed a memorandum of understanding between London St Pancras Highspeed and Eurotunnel to enhance cross-border rail travel by reducing journey times, improving timetable coordination, and encouraging new routes. Both companies will work with governments to support this environmentally focused initiative. London St Pancras Highspeed CEO Robert Sinclair emphasized the importance of high-speed rail in connecting Europe, while Getlink CEO Yann Leriche highlighted ambitions to expand rail links to Germany, Switzerland, and France, supporting a greener and more connected European transport network.
New players – Since 2023, a company provisionally called Gemini has been studying a link between London and the Continent. Its chairman is a well-known figure in the British railway world: Lord Berkeley. During ten years he worked as an engineer for Eurotunnel 1985–95. Over the past two years, Gemini has worked to launch a new cross-border rail service, leveraging deep expertise in business, finance, operations, ticketing, and regulation. The team’s knowledge positions it well to navigate the complex European rail landscape and challenge the existing monopoly on the high-speed route between London and the continent.
As part of its development efforts, Gemini has engaged with various industry stakeholders, including Eurostar, infrastructure managers, and regulators. The company has also applied to the Office of Rail and Road (ORR) for access to Eurostar’s Temple Mills International depot and is in talks to secure additional maintenance facilities to support its planned operations. The Gemini team out and about visited in March and April sites in Paris (Technicentre Le Landy), Stratford International and the Temple Mills Depot.
FS Group announces plans to launch London – Paris train service by 2029 – Italian national railway FS Group plans to launch a high-speed train service between Paris and London via the Channel Tunnel by 2029, which sounds very daring, but the operator explains that the service will use energy-efficient Frecciarossa trains, aiming to provide superior comfort and simplified ticketing. The famous Frecciarossa trains will probably need to be adapted for safety reasons to run through the Channel Tunnel. FS Group’s existing operations in both the UK and France give it a strategic advantage, and the initiative aligns with its 2025–29 Strategic Plan to expand international rail services.
The company is collaborating with Spanish firm Evolyn, which has similar ambitions for the route. Preparations include regulatory compliance and potential capacity expansion at London St Pancras. CEO Stefano Donnarumma recently visited London, and it wasn’t to go shopping at Oxford Street! He emphasized the role of high-speed rail in sustainable, integrated European mobility, highlighting FS’s broader international ambitions, including new routes to Germany and expanded services in France and Spain. Trenitalia’s strategy is clear. FS joins a growing list of operators, including Gemini Trains and Virgin Group, eyeing the London–Paris corridor, spurred by regulatory and infrastructure developments supporting greater competition and passenger volume growth at St Pancras.
Also from Switzerland? – Last week the UK and Switzerland have signed a memorandum of understanding to explore launching a direct high-speed rail link between the two countries. A joint working group will bring together government officials and rail industry experts to address the technical, commercial, and regulatory challenges, including Channel Tunnel safety and border security requirements. The initiative, announced at London St Pancras, is seen as a step toward enhancing international rail services and promoting sustainable travel. A direct service from Genève could cut journey times to five hours, making it competitive with air travel. Swiss Federal Councillor Albert Rösti emphasized the environmental and economic benefits, noting the potential to reduce flights. UK Transport Secretary Heidi Alexander called the project a milestone for greener connectivity. Infrastructure and operator support is growing, with SBB planning to acquire high-speed trains and Eurostar expressing strong interest. A launch could be feasible within 5–10 years, pending trilateral agreements with France.
Of course, there are still some serious hurdles to overcome. Access to the Temple Mill depot is limited to a single operator, according to a quick review by the UK regulator. If there are several operators, the construction of a new site seems essential. It’s not an insurmountable challenge, even in London. Trenitalia seems best placed at the moment, thanks to trains that already exist. But we’ll have to see what Hitachi rail’s plans are for Pistoia (near Florence), in terms of production capacity. Hitachi may also be able to use its factory in Newton Aycliffe (Sunderland, not far from Newcastle). The factory is said to be looking for orders following the fog generated there by “renationalisation”. But this is purely speculative at this stage.
Whatever happens, and whatever decisions are taken in the future, the fact is that the link between the Continent and London will no longer have a single monopoly operator by 2030, or 2031. That’s 5 to 6 years from now…
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Poland
Poland’s largest railway tunnel is being built under central Łódź – 21/04/2025 – The Austrian construction company PORR has been selected as the main contractor for building a new high-speed rail tunnel through the city of Łódź in Poland. The project involves the construction of a 4.6-kilometer double-track tunnel running between Retkinia and Łódź Fabryczna stations. This tunnel is a crucial element of Poland’s broader initiative to develop a modern high-speed rail network.
The contract is valued at approximately 1.76 billion zloty, (€412 million). The client behind the project is the state-owned Centralny Port Komunikacyjny (CPK), which is also responsible for the planned major airport and related transport infrastructure. According to CPK, this will be the longest and widest tunnel of its kind in Poland.
The CPK (Centralny Port Komunikacyjny) project in Poland is a major national infrastructure initiative combining a new central airport near Warsaw with a modern high-speed rail and road network. Scheduled for completion by 2032, it aims to improve domestic and international connectivity, reduce travel times, and boost economic growth. The project includes over 1,800 kilometers of new railway lines, connecting key cities like Warsaw, Łódź, Wrocław, and Poznań, making it one of Poland’s largest transport investments.
The tunnel under the city of Łódź is a cornerstone in the future high-speed rail route linking Warsaw with CPK, and eventually connecting further west to Wrocław and Poznań. Trains will be able to reach speeds of up to 250 kilometers per hour on these lines.
However, due to dense urban development above the tunnel route in Łódź, the maximum speed within the tunnel will be limited to 160 kilometers per hour. Despite this, it represents a major step in connecting central Poland with the western regions. Completion of the tunnel is expected to coincide with the opening of the new airport in 2032.
Challenging Construction in an Urban Setting – Given the tunnel’s route beneath a densely populated area, advanced engineering methods will be required. PORR will employ a tunnel boring machine with a 14-meter diameter—significantly larger than those used in previous Polish rail projects. To minimize risk to nearby buildings, CPK has already conducted over 70 technical studies. Meanwhile, Polish company Budimex is completing the launch shaft in Retkinia, scheduled for completion in May, with work already underway on the receiving shaft at Fabryczna station.
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Norway/Denmark
Two candidates on the Oslo-Denmark route – 25/03/2025 – The Swedish rail operator Snälltåget is seeking to operate cross-border train services between Norway, Sweden, Denmark, and Germany. However, the Swedish operator is not the only candidate, as Norwegian railways are also interested in the same route.
The Norwegian government supports indeed night train services between Oslo and Copenhagen. The Norwegian parliament, Stortinget, wants an overnight rail connection to Danish capital Copenhagen to be introduced by 2030. The decision comes after a revised budget was approved in July 2024 by the parliament, containing a pledge to reintroduce a night rail service from Norway to mainland Europe. Currently, no direct daytime trains exist, and ferries are slow and expensive. Advocates argue that authorities underestimate the potential of night trains. In the past, a night train linked Oslo to Hamburg, twinned with a Stockholm-Hamburg train. It used Deutsche Bahn couchettes and sleeping cars.
Snälltåget’s expansion remains uncertain, relying on track access, rolling stock acquisition, and market conditions. Snälltåget has applied to the Norwegian Railway Authority (SJT) for permission to run these services. The application, submitted in January 2025 and supplemented in February, includes a request to operate 53 carriages and five locomotives, some already approved for use in Norway. A response is expected before summer.
Open access – Operating solely on ticket revenue, Snälltåget has run night trains within Sweden since 2007 and expanded to Berlin in 2012. Part of the Transdev group, it also runs seasonal night trains to Austria. In 2023, it received authorization to transport domestic passengers within Denmark and operate daytime services between Copenhagen and Aarhus. Whereas the Norwegian project is designed as a subsidised service, the details of which we don’t really know. It is not clear how the Norwegians will act in Sweden and Denmark, by open access or cooperation.
Challenges in Track Access – Snälltåget stated in March that securing attractive schedules remains uncertain due to Norway’s prioritization of public rail traffic. Norway awards passenger rail service contracts to state-owned operators such as Vy and Flytoget, as well as Swedish state-owned SJ and Go Ahead, making it difficult for an open-access operator like Snälltåget. However, it is astonishing that the Norwegian network managed by Bane Nor does not have a single train path available between the Swedish border and Oslo, twice a day (one in the morning, another in the evening). Of course, there has to be access available at Oslo station, which is not a huge station.
The idea of linking Oslo to Denmark, or even Hamburg, will in any case come up against the problem of rolling stock. In Norway, the public operator Vy (ex-NSB) does not have sleeper cars that can be used to connect with Denmark. And Snälltåget does not have sufficient rolling stock either, because the operator already runs a Stockholm-Berlin night train which mobilises all its available rolling stock. We will be following these issues closely and will see what the future holds.
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