Policies
The modernization of the rail infrastructure is a key area of action for DB Group as part of its sustainable corporate development. The existing infrastructure is currently in considerable need of modernization and no longer meets the requirements for future-oriented, high-performance and resource-efficient mobility in many respects. In particular, reliability and capacity are impaired by the condition of the rail network.
In order to effectively counteract the poor condition of the rail infrastructure, DB Group’s infrastructure development is specifically aimed at stabilizing operations and modernizing the existing network, especially in highly utilized sections. The focus is on eliminating existing bottlenecks, increasing the availability and reliability of the infrastructure and thus creating the conditions for efficient rail transport.
This focus was intensified further as part of the update to DB InfraGO’s business unit strategy in 2025: the strategic priorities are to stabilize operations, comprehensively modernize the existing network and further develop the stations of the future.
The basis for DB InfraGO’s strategic orientation is the infrastructure program for the rail network and stations, which was presented by the Federal Government and DB Group in 2023. The goal is to make train services permanently more punctual and to create the conditions for achieving the transport policy targets in passenger and freight transport.
DB InfraGO systematically involves key stakeholder groups when evaluating the effectiveness of its strategic measures. The central format for this is the Sector Advisory Board, an independent specialist body that accompanies DB InfraGO’s common good-oriented activities with specialist and practical expertise and represents the breadth of the rail sector, with over 20 members from train operating companies (TOCs), regional rail passenger transport contracting organizations and associations.
In 2025, aspects of infrastructure modernization including line layouts, corridor modernization measures and the network condition grade were presented to the Sector Advisory Board and discussed from a technical perspective in terms of their effectiveness. In addition, DB InfraGO regularly holds customer events at which TOCs, as business partners, are informed about modernization-related infrastructure topics and involved in the dialog on the planning, implementation and impacts of the respective measures.
Normative framework
DB InfraGO’s business unit strategy and infrastructure program implement the Federal Government’s transport and infrastructure targets within the framework of the applicable legal and planning requirements. Relevant guidelines for this are derived from the normative framework of the Federal Government, which defines the long-term development, financing and prioritization of rail infrastructure. The key norms and planning instruments presented below form the basis for the strategic orientation.
According to Article 87e (4) of the Basic Law (Grundgesetz; GG), the Federal Republic of Germany guarantees that, “in developing and maintaining the Federal railway system [...], due account is taken of the interests and especially the transport needs of the public.” The Federal Government fulfills this infrastructure mandate by providing funds for capital expenditures. The main basis for this is the Federal Rail Infrastructure Extension Act (Bundesschienenwegeausbaugesetz; BSWAG) and – as a special instrument below the BSWAG – the Performance and Financing Agreement (Leistungs- und Finanzierungsvereinbarung; LuFV). Further investment grants are awarded under the Municipal Transport Financing Act (Gemeindeverkehrsfinanzierungsgesetz; GVFG), the noise remediation program of the Federal Government and the Railroad Crossings Act (Eisenbahnkreuzungsgesetz; EBKrG), among others. The European Union allocates grants under the Connecting Europe Facility (CEF) program for infrastructure capital expenditures on Trans-European Networks (TEN).
The funds are generally granted as non-repayable investment grants. We also invest a considerable amount of DB funds. On the balance sheet, investment grants are directly deducted from acquisition and manufacturing costs of the subsidized assets. All grants are recorded in such a way as to ensure that the competent authorities can comprehensively check that they are used for the intended purpose and in accordance with the law.
In addition to investment grants, DB Group receives income grants, which are also largely attributable to infrastructure. With the amendment to the BSWAG, which came into force on July 9, 2024, the legislator has significantly expanded the possibility for the Federal Government to provide financial support for expenses in addition to capital expenditures. Agreements must be concluded between the Federal Government and DB Group in order for the funding options to be utilized. This was done as part of supplements to the existing LuFV III for the years up to 2026.
General Railways Act and Directive (EU) 2016/798 safety certification
Operators of rail tracks require mandatory safety certification to operate rail infrastructure. This is issued by the Federal Railway Authority (Eisenbahn-Bundesamt; EBA). The corresponding requirements are regulated by Section 7c of the General Railways Act (Allgemeines Eisenbahngesetz; AEG) and by Directive (EU) 2016/798 on rail safety and are reflected in the internal continuation and implementation of the resulting requirements.
The focus is on demonstrating that the rail infrastructure company has established a safety management system that meets the requirements formulated at EU level. Safety certification also includes proof that national requirements relating to maintenance, operation, control and safety systems have been met.
2030 Federal Transport Infrastructure Plan
The 2030 Federal Transport Infrastructure Plan (Bundesverkehrswegeplan; BVWP) is the most important instrument of Federal transport infrastructure planning and sets the course for transport policy for a period of about 10 to 15 years. It covers existing networks as well as expansion and new construction projects in the road, rail and waterway modes of transport.
The core focus of the 2030 BVWP is the preservation of existing networks and the elimination of bottlenecks on main lines and at important hubs. Of the total plan volume of about € 269.6 billion, about € 141.6 billion will be spent on the maintenance of existing networks by 2030 alone. About € 98.3 billion has been earmarked for expansion and new construction projects.
For the first time, the expansion and new construction in the rail network envisaged in the 2030 BVWP is based on the goal of Germany in sync (Deutschland-Takt) and forms the infrastructural basis for its introduction. The aim of Germany in sync is to make the travel chains within the rail system more attractive for a large number of people, offering a network-wide coordinated timing of train runs. According to the current status as of August 2025, a total funding requirement of about € 243 billion is required for the Federal rail tracks.
Federal Rail Infrastructure Extension Act
The Federal Rail Infrastructure Extension Act (Bundesschienenwegeausbaugesetz; BSWAG) is the legal basis for the financing of the Federal rail infrastructure. The focus is on Section 8 BSWAG, which regulates the classic Government grants for capital expenditures for the new construction or expansion of lines and for replacement capital expenditures on existing Federal rail tracks. The appendix to Section 1 BSWAG contains the individual projects included for implementation in the “requirement plan for the Federal rail tracks.”
Further details as well as additional optional objects of funding are regulated in Section 11 BSWAG.
The Federal Government and DB AG have concluded various multi-year financing agreements to define the Government funding guaranteed under the provisions of the BSWAG in greater detail.
Performance and Financing Agreement
The subject of the LuFV between the Federal Government and the rail infrastructure companies (RICs) is the maintenance of the rail tracks and its financing. The document referred to as LuFV I was valid for the period from 2009 to 2014 and was replaced by LuFV II as of January 1, 2015. LuFV III followed as of January 1, 2020, with a term of ten years until 2029. Since then, a total of three supplements have been concluded, in particular to cushion inflation-related price increases and to implement the new funding possibilities under the amendment to the BSWAG that was implemented in 2024. In this context, the funding of maintenance services, the implementation of corridor modernizations and improvements in the area of station infrastructure were a substantive focus. On the basis of this agreement, the Federal Government makes earmarked payments for replacement capital expenditures in the rail tracks (Section 11 (1), Section 8 (1) BSWAG), an infrastructure contribution, as well as additional grants for maintenance services and the station infrastructure.
LuFV III focuses on comprehensive transparency and control. The EBA monitors the implementation of the agreement. Specific criteria were agreed in LuFV III to measure the success of the agreement. If DB Group fails to meet certain contractual requirements, penalties must be paid.
In connection with the establishment of DB InfraGO AG as a common good-oriented RIC, the financing architecture is also to be further developed. Efforts are being made to replace the LuFV III from 2027 with an enhanced agreement (InfraGO Performance Agreement), which is currently being prepared by the Federal Government and DB Group.
Requirement Plan Implementation Agreement
To accelerate the implementation of the projects in the requirement plan, the Requirement Plan Implementation Agreement (Bedarfsplanumsetzungsvereinbarung; BUV) concluded between DB Netz AG (now: DB InfraGO AG) and the then Federal Ministry of Transport and Digital Infrastructure (Bundesministerium für Verkehr und digitale Infrastruktur; BMVI) came into force as of January 1, 2018. Instead of the previous flat-rate planning contribution, the Federal Government has since funded the total project costs in which DB Group participates in the amount of the economic viability of the project portfolio. Planning monitoring by the EBA was intensi-fied and non-compliance with commissioning deadlines was penalized.
Municipal Transport Financing Act
Grants under the Municipal Transport Financing Act (Gemeindeverkehrsfinanzierungsgesetz; GVFG) relate to contributions from the Federal Government to improve transport conditions in municipalities. This can also be used to fund the expansion and new construction of the rail infrastructure for regional rail passenger transport in the amount of 60 % to 90 % of the eligible costs depending on the object of funding. Eligible projects include, among other things, capital expenditures to increase capacity or to reactivate or electrify rail lines, as well as refueling and charging infrastructure for alternative drives. The construction and expansion of stations is also currently eligible for funding until 2030.
Climate Action Program 2030
With the Climate Action Program 2030, the Federal Government is pursuing an approach to achieve the defined climate protection targets with a broad range of measures consisting of innovations, funding, legal standards and requirements as well as greenhouse gas pricing. The program also includes a series of measures to support rail transport. Within this framework, the Federal Government has provided additional funds totaling € 11 billion until 2030 to strengthen the rail mode of transport and achieve the Federal Government’s climate protection targets as expressed in the Climate Action Program since 2020. These funds are earmarked entirely for the rail infrastructure and will be paid out in equal parts in the form of equity increases (until 2024) for the Federal RICs and as grants (from 2025).