2018 Integrated Report – On track towards a better Railway

Development of business units

Business model

DB Netze Track is Europe’s number one rail infrastructure provider. More than one billion train-path kilometers are traveled each year on the tracks in Germany. The most im­portant sources of income are revenues from train-path prod­­ucts, which constitute over 90% of total revenues. Train-­­­path prices are established on a transparent basis by a train-path pricing system regulated by the BNetzA.

DB Netze Track is also responsible for managing infrastructure operations as well as for securing long-term infrastructure quality and availability and non-discriminatory access to train-paths and service facilities. This includes preparing timetables in close cooperation with customers, operations management, construction management and maintenance.

The cost structure is dependent on fixed costs. The rail network is one of the most important cost drivers. The use of resources for the operation and maintenance of infrastructure facilities is very much influenced by specific facility characteristics, requirements relating to operational opening hours and the degree of rationalization in operating business activities. As the dimensions of the infrastructure only change in the long term due to new construction or expansion projects or targeted dismantling, the optimal capacity utilization of the existing infrastructure is of major importance for economic success.

A high level of quality and availability for customers also calls for a forward-looking integrated capital expenditure and predictive maintenance strategy. Capacity utilization is measured by volume produced. In terms of relative network capacity utilization, this figure can be compared to track kilometers. To achieve further growth, it is important that new construction and expansion projects concentrate on removing bottlenecks and on the creation of additional capacities for growth in transport in the main corridors and metropolitan areas. The budgetary resources of public authorities, in particular the Federal Government, are of considerable relevance for the financing of replacement capital expenditures in the existing infrastructure, as well as for the financing of new construction and expansion projects. In this respect, integration of an entrepreneurial infrastructure into the Group structure is essential for enabling DB Group to continue making a contribution to the co-financing of these infrastructure measures.