STRUCTURAL CHALLENGES FOR RAIL FREIGHT CONTINUE IN GERMANY
The negative trend in German rail freight transport continued in 2025, underlining persistent structural weaknesses that the sector has yet to overcome. According to preliminary figures presented by the Verband Deutscher Verkehrsunternehmen (VDV) at its annual press conference, rail freight performance fell to around 133.9 billion tonne-kilometres. This is below the level recorded in 2016 and represents a decline of more than three percentage points over the period.
Economic stagnation, higher tariffs, administrative burdens and rising costs for track access charges, energy and labour are weighing heavily on the sector. Also a shortage of skilled workers and ongoing regulatory uncertainty are making long-term planning increasingly difficult. In this context, the lack of reliability in support schemes for combined transport, single wagonload traffic and track access charge compensation is proving particularly problematic. The VDV also points to a track access charging system that is no longer fit for purpose and widely recognised as in need of reform across Europe.
Pressure on the sector is further intensifying due to growing capacity constraints on the network. According to the 2026 network timetable, 26 rail routes are now classified as congested. Infrastructure quality continues to deteriorate, with the overall network rated below satisfactory and signalling systems performing particularly poorly. At the same time, construction activity has increased sharply, with more than 26,000 construction sites or events recorded in 2025 and even higher numbers expected in 2026.
These works are having a tangible impact on operations. Diversionary routes are often insufficiently equipped or lack the necessary capacity, meaning that fewer train paths are available – or none at all in some cases. Longer journey times and additional disruptions are eroding reliability and punctuality. Operators are also facing significantly higher costs due to detours, additional traction, increased staffing needs and higher terminal and ancillary construction expenses. Reduced train lengths and inefficient deployment of personnel further undermine productivity, directly affecting revenues and financial results. In a highly competitive intermodal market, this situation risks pushing traffic back onto the road, with negative consequences for supply chain reliability.