Italo’s Massive €3.6B Push to Break Germany’s High-Speed Monopoly

Italo German high-speed rail plans are moving forward. The investment programme is valued at EUR 3.6 billion. The Italian private operator wants its first trains in Germany to enter service in 2028. This is reported by the railway transport news portal Railway Supply.

Also, the move would put Italo in direct competition with Deutsche Bahn’s ICE services. That competition would unfold in one of Europe’s largest rail markets.

As reported by RailwayPro, Italo is considering an order for 26 Siemens trains. The same plan includes an option for 14 more. The rolling stock purchase alone is estimated at about EUR 1.2 billion. The remaining amount is stated as EUR 3.6 billion. It would cover 30 years of maintenance. It would also cover staff training and station-related spending. The same package includes the IT systems needed to launch operations.

Italo German high-speed rail routes under review

Italo’s planned German network would cover around 1,300 kilometers and serve 18 cities. Also, the company is considering up to 50 daily services. The first corridors under examination are Munich–Cologne–Dortmund and Munich–Berlin–Hamburg. Both are among Germany’s busiest passenger routes.

Italo is working from the assumption that Italy’s experience could be repeated in Germany. In its view, additional competition may increase capacity and attract more passengers. It may also make fares more appealing.

Italo CEO Gianbattista La Rocca called Germany the company’s first international expansion stage, International Railway Journal reported. He said the German subsidiary has already been created. The rail licence is in place. The safety certificate process is underway. At the same time, Italo has linked its talks with Siemens to a tight schedule.

DB InfraGO route access remains central

One of the main unresolved issues is access to the German rail network. Italo needs DB InfraGO, Germany’s infrastructure manager, to provide clarity on routes and station capacity. Those elements are required for the planned services.

If that information is not provided quickly enough, the Siemens contract could be delayed. Also, such a delay would affect train deliveries. It would also affect the wider project’s industrial viability.

German media reports describe this as one of the most delicate points. The issue concerns the arrival of a new private operator. In Germany, capacity allocation is mainly handled on an annual basis. Still, a project of this scale requires greater predictability for investors and operators.

Siemens Velaro trains and the ICE 3neo platform

The trains being considered by Italo would belong to the Siemens Velaro family. They would be built at Siemens’ Krefeld site. This is the same platform used for the ICE 3neo. That factor could make approval for use on the German network easier. It could also support a faster entry into service. Reports say the trains would be able to operate at up to 320 km/h.

Italo’s shareholder base stands behind the plan. It is led by MSC and also includes GIP, Allianz and the founding partners. According to La Rocca, the group sees high-speed rail development as an industrial initiative. That view covers the medium and long term. It is not only a financial investment.

Italy as the reference point

Italo is using its experience in Italy as the basis for its German plan. In Italy, competition with the FS group reshaped the high-speed market. The company says demand increased strongly after it entered the sector. Also, it says fares fell and operators remained profitable.

Italo now wants to apply that approach in Germany. The company estimates the German high-speed market at 110–120 million passengers a year. It sees room for further growth.

In addition, the company says the German project could create around 2,500 jobs. These would be direct and indirect. That would be in addition to employment connected with train manufacturing. Italo says its goal is to build a local German team and structure. That work would draw on the experience it has developed in Italy.

Continued investment in Italy

Italo says the German plan does not mean it is stepping back from its home market. In Italy, the operator intends to expand its fleet from 51 to 63 trains. The first new units are expected to be delivered by the end of 2027.

Separately, the company refers to service upgrades. These include improved connectivity and the refurbishment of train interiors.

For now, the German project depends on infrastructure access. It also depends on the timing of the Siemens agreement. If the plan advances, Germany could become another major European market for high-speed competition. In that case, competition would begin to challenge the incumbent operator’s established position.

News on railway transport, industry, and railway technologies from Railway Supply that you might have missed: