In the last days of 2025, the German Federal Network Agency (Bundesnetzagentur) published its annual rail market report. RailFreight.com discussed some aspects of the findings already last week, but there is more to discuss: the implementation of ETCS and electrification of tracks.
Both ETCS and electrification provide an illustrative example of the state of affairs on the German rail network. Germany aims to fully implement ETCS by 2040, meaning that all railways need to be equipped with the train control system by then.
That target seems very far off when reading the Bundesnetzagentur’s report. Only a single percent (526 kilometres) of tracks was equipped with the technology by the end of 2024. That percentage has likely been boosted somewhat in 2025 by the modernisation of the Riedbahn corridor, which saw the introduction of ETCS Level 2.
ETCS is proving to be a persistent problem for German rail: companies highlight inconsistent ETCS standards, disruptions, and uncertainty regarding future ETCS deployment and regulation.
Within that context, Bundesnetzagentur points to the likelihood of re-upgrading rolling stock to newer versions of ETCS. “With regard to the further rollout of ETCS on the German rail network, upgrades may be required, particularly for older system versions, meaning that these vehicles would once again require conversion resources.” That is a costly affair, as illustrated in the figure below.
Germany has 15,950 locomotives in operation, of which some 2,200 are ETCS-equipped. The 1,500 mainline locomotives (out of 2,800) account for the largest share of vehicles with ETCS. Germany also has 650 ETCS Multiple-Units with the train control system, as well as 30 shunting locomotives.
The agency also identified the lack of electrification, incompatibilities in overhead line sections, and stray currents that locally prevent the use of modern locomotives as hindrances in the rail industry.
In 2024, the overall electrification rate for the German rail network stood at slightly over 55%. This figure reflects a stagnation at the previous year’s levels for both federally and non-federally owned routes. Specifically, 62.4% of the Deutsche Bahn-operated rail network was electrified, while the electrification rate for non-federally owned networks remained low, at approximately 11%.
Why is Germany so slow?
In stark contrast to Germany, countries such as Belgium, Denmark, Italy and the Czech Republic are making faster technological progress on their rail networks. Belgium has already equipped its entire core rail network with ETCS. The Czech Republic, with around 15% already completed, is aiming for full implementation in 2035. Meanwhile, Italy has reduced adaptation costs by 30% through a coordinated approach and is on track for full implementation in 2036.
Germany is facing implementation problems with its railway network due to a fragmented administrative structure (federal, state and company levels share responsibility) and technical complexity, writes our sister publication RailTech.com. Regional signalling systems require costly and time-consuming installation of ETCS equipment in diverse rolling stock. The average cost of this installation has doubled in four years to around €900,000 per vehicle, with additional costs and delays due to specific German regulations. As a result, even renovated lines are being reopened without ETCS, while transport operators await clearer policy on large-scale modifications. For example, the Hamburg-Berlin railway is not getting ETCS despite the months-long closure.