Unleash huge monetary losses in the initial stage of the training process - Railway experiences triple-digit million deficit in first half of the year
German Rail Begins Major Berlin-Hamburg Track Modernization
German Rail (Deutsche Bahn, DB) has embarked on a significant track modernization project on the Berlin-Hamburg route, marking the first real test of the construction concept by rail experts. The renovation, part of DB's turnaround program called the S3 turnaround program, is expected to last for nine months, resulting in the complete closure of this important connection.
The renovation, which commenced on August 1, is being undertaken by DB with a goal to achieve an on-time performance rate of 65 to 70 percent for the entire year. However, despite the renovation, significant improvement in the punctuality of the rail service is unlikely after the Hamburg-Berlin track renovation.
In June, only 57.1 percent of long-distance train stops were on time, with a maximum delay of 5:59 minutes, according to a report based on a mid-year report from the German Press Agency.
The track's length and complex detour options make this renovation more challenging compared to other major renovations, such as the one between Frankfurt and Mannheim. The rail company's strategic focus on its core business, evidenced by the recent sale of its logistics subsidiary DB Schenker to DSV in July 2025, is part of DB's broader efforts to improve profitability after facing a projected triple-digit million euro loss in 2025.
As part of its turnaround and investment plans, DB is a major beneficiary of Germany’s €500 billion Climate and Transformation Fund (CTF), which supports infrastructure and digital modernization projects. Within this fund, Deutsche Bahn is allocated about €100 billion for rail modernization aimed at improving transport efficiency and sustainability by 2030.
One flagship project is Stuttgart 21, involving the opening of Stuttgart's new main station and rail hub for long-distance and regional traffic in December 2026. This will integrate digital control and safety technology, enabling smoother operations and shorter travel times for passengers.
The introduction of digital technology in key stations and rail corridors plans to reduce travel disruptions and improve service quality, underpinning the transport turnaround in the southwest of Germany. Together, these elements represent Deutsche Bahn’s plan to recover from financial losses by streamlining operations, focusing on core rail services, and investing heavily in infrastructure modernization alongside digital transformation, aiming to improve efficiency, capacity, and customer satisfaction over the mid to long term.
In addition to the Berlin-Hamburg track renovation, four more major renovations are scheduled for 2026. The DB's commitment to modernizing its rail infrastructure is a testament to its dedication to delivering a more efficient, sustainable, and reliable rail service for the future.
The community policy of Deutsche Bahn (DB) includes commitments to modernize key rail infrastructure, such as the Berlin-Hamburg track, and invest in vocational training for its employees, aiming to improve efficiency, capacity, and service quality. With the upcoming Berlin-Hamburg track renovation, DB seeks to align with the industry standards, ensuring financial stability and profitability in the face of projected losses in 2025. The company also aims to secure funding from the Climate and Transformation Fund (CTF) for vocational training programs, facilitating the advancement of its employees in the transport sector.
