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It's semi-privatized in effect. It's run as a profit-oriented business while at the same time being publicly controlled and funded. It's the worst of both world
by hnbad 2y ago
It's semi-privatized in effect. It's run as a profit-oriented business while at the same time being publicly controlled and funded. It's the worst of both worlds in that sense. In fact, in addition to DB there's DB Regio as well as its various subsidiaries including DB RegioNetz with its own various subsidiaries. Other direct subsidiaries of DB are DB Fernverkehr for long distance trains, DB Cargo and DB InfraGO which was created as a merger of DB Netz (not to be confused with DB RegioNetz) and DB Station&Service. Most of these subsidiaries are intended to operate in such a way as to be independently profitable. There's also DB Energie because of course a corporation of this size needs vertical integration.
Just now the coalition government decided to move funds intended for rail infrastructure into road infrastructure and build/extend another stupid highway. At the same time existing highway bridges are falling apart and the rail infrastructure is in desperate needs of improvements. German railway is at the same time kneecapped by its need to operate as a profit-driven business as well as being controlled by the policy-driven government.
- RandomLensman 2y agoIt is not privatized - it is the owners (the state) giving it certain objectives. The state has control as well as ownership and is making choices. If the owners wanted to do something different, they could do so (as you pointed out with the redirection of funds). The choices that were put into art 87e GG, for example, are still choices.