Richard Lutz, the head of Germany’s national rail operator Deutsche Bahn (DB), will soon leave his post. The German transport ministry on 14 August announced that it had agreed with Lutz to prematurely terminate his contract by mutual consent.
Lutz will continue to fulfill his duties as CEO of Deutsche Bahn until a replacement is found. He became the head of the operator in 2017, and his contract would have run out in 2027 under normal circumstances.
Insider sources have reportedly told dpa and AFP that the decision to terminate Lutz’ contract is connected with the poor performance of the rail operator. Germany’s rail infrastructure is outdated and in poor condition, and the punctuality of trains is lacking.
A new leading figure at DB will coincide with a new strategy for the company. “I’ve always said: strategy first, then personnel”, transport minister Patrick Schnieder is quoted as saying. “Our concept is in its basic form; now we need to find the right person to implement it. This selection process, too, is about thoroughness and diligence over speed!” Schnieder is expected to present a long-term strategy for DB later this year.
While the German transport ministry makes no explicit mention of freight services, industry insiders have complained about the lack of strategy at DB Cargo. However, they also point to the transport ministry for not taking its role as supervisor seriously.
The sector reacts
The German private rail freight association Die Güterbahnen has responded positively to Lutz stepping down. Its managing director, Peter Westenberger, commented: “”Lutz never consistently implemented the supposed return to “railways in Germany” internally. Instead, he relied on the low and declining productivity of DB’s rail companies and the tacitly accepted unfair competitive conditions with road transport being replaced by ever more subsidies from politicians.”
“We are grateful that he is now clearing the way for a new strategy and new minds”, he continues. “It is now even more urgent for the transport minister to create a robust framework with the announced rail strategy that capable rail managers can follow as a basis for positive change.”