Italo invests in Germany – orders for Siemens in Krefeld

Italo President: project for the European transport market

Italo CEO Gianbattista La Rocca justified the commitment with a promise to passengers: „Wir wollen den Fahrgästen in Deutschland eine größere Auswahl, häufigere Verbindungen, faire Preise und einen hochwertigen Service bieten.“ Italo President Luca Cordero di Montezemolo spoke of an important step towards a more integrated European transport market: „Das Projekt verbindet die Erfahrung von Italo als erstem privaten Betreiber von Hochgeschwindigkeitszügen in Italien mit dem Potenzial des deutschen Marktes und der Industriekompetenz von Siemens Mobility."

According to the manufacturer, the Velaro Multi System trains are structurally and visually closely related to Deutsche Bahn's ICE-3 and ICE-3 Neo trains. They are designed to reach speeds of up to 320 kilometres per hour, consist of eight carriages, offer around 450 seats and feature three travel classes, a bistro area as well as 5G and satellite connections. A contract has also been concluded with Siemens for this. The term is 30 years.

Federal Network Agency paves the way

The Federal Network Agency, based in Bonn, cleared the way for the market entry last Friday. The authority obliged DB InfraGO, the infrastructure subsidiary of Deutsche Bahn, to allocate a maximum of 60 to 75 percent of capacities on heavily frequented and currently fully utilised route sections to a single company. At the same time, on certain routes, at least 25 percent of capacities must remain available for competitors. "More competition has the potential to create better offers for passengers," said the head of the Federal Network Agency, Klaus Müller. The decision could "initiate a upheaval in long-distance rail passenger transport," as Müller emphasised.

According to its own statements, Italo is the first private high-speed train operator in Italy and had applied for the capacity decision. The application had been filed by Italo. To date, Deutsche Bahn controls around 95 percent of long-distance rail passenger transport in Germany; the only significant larger competitor is the Munich-based provider Flix. The trains are to be maintained in Dortmund.

Criticism from unions and passenger associations

Unions, passenger associations and Deutsche Bahn itself, however, warn of possible negative effects. If Italo picks only the lucrative routes, Deutsche Bahn could have less money available to invest in less attractive regional routes. Specifically, this concerns the delivery of 26 high-speed trains. According to Siemens, the contract also includes digital services based on artificial intelligence, designed to increase the availability of the trains over their entire lifetime.

With the Federal Network Agency's decision, concrete preparations for the 2028 launch are now beginning, including the hiring and training of staff as well as the establishment of operational and commercial structures. The 30-year maintenance contract with Siemens secures long-term servicing of the fleet at the Dortmund site, according to the manufacturer. This will keep production in Krefeld utilised for years to come, and Dortmund is establishing itself as a maintenance location.

Significance for Siemens sites in North Rhine-Westphalia

According to its own presentation, Italo is the first private high-speed rail company in Italy and sees significant growth potential in the German market. Montezemolo described the project as a combination of Italian rail experience with German industrial expertise. Klaus Müller, head of the Federal Network Agency, also considers the step a possible turning point in long-distance transport: he expects more competition and better offers for passengers.

The order with Siemens Mobility is also an industrial signal for the North Rhine-Westphalia location. The production of the Velaro Multi System trains in Krefeld and the maintenance in Dortmund tie production, technology and employment to the region for decades. With the contract option for a further 14 trains, the investment volume could potentially increase further, which would additionally strengthen the industrial significance of the order for Siemens Mobility in Germany.

Deutsche Bahn remains the market leader in German long-distance transport, but in future faces an additional competitor focusing on two of the country's most important corridors. Competition is likely to affect prices, frequencies and service quality in particular – precisely those factors that Italo CEO La Rocca named as the core of his offering in Germany.