Escalating Disputes
Hittin' The Books Straight:
Here's the skinny: The financials are a doozy.
The finaglings? A whopping -106.8 million Euros, with a 73.3 million Euro state bailout in the mix (last year was -81 million, including 51.8 bailout). Fare revenue comes in at 171.4 million (up from 2021's 197.7). The cost coverage ratio, including the bailout, stands at 73.8% (up from 2021's 81%).
But here's where it gets twisty – a breath of fresh air after two years of dwindling passengers due to ol' Corona. 2022 saw a return to buses and trains: 173.3 million passengers (up from 2021's 165.0). Subscribers totaled 180.7 million (up from 178.9 million in 2021).
As Andreas Hartnigk, our supervisory board chairman, puts it, "2022 was the third year of the Corona era, with a Russian invasion of Ukraine and a third-highest inflation rate in the last 70 years. The 9-Euro-Ticket lit up public transport and was a gigantic success, but our financials have taken an enormous hit." Energy costs soared from 24 million to 33 million Euros. Hartnigk warns, "The financial situation in public transportation will remain tense, with the Germany ticket, high inflation, rising interest rates, wage agreements, and more factors piling the pressure."
Heated debate about qualified personnel and infrastructure modernization investments is on the horizon. The local public transportation companies across the country can't shoulder these costs alone, but municipal budgets are feeling the squeeze. So, Hartnigk calls on the federal and state governments to churn out simplified and comprehensive financial solutions.
Despite the economically turbulent waters, citizens of the Rheinbahn have thrown some seriously high praise our way. In three surveys conducted by the institutes forsa, Kantar, and ifh Cologne in 2022, we earned 93% approval for our role in promoting eco-friendly mobility in the region and 90% belief that we're indispensable in the region. Klaus Klar, our Works Director, grins, "These approval rates are fantastic and a solid foundation for our future."
The Deets:
Public transport companies in Germany are grappling with rises in energy costs, inflation, and labor costs, as well as a deep crisis at heavyweights like Deutsche Bahn (expecting a significant loss in 2024 and planned job cuts/asset sales). Government spending on public transport and policy changes, such as proposed tax incentives, are aimed at providing some relief. Daimler Truck's Daimler Buses division, however, has shown resilience with positive results, but broader economic uncertainties loom. Public investment in transport infrastructure modernization is crucial, yet companies can't fund it themselves. Expect some pleas for help from your local transportation authority to the government!
The financial struggles in the public-transit industry are evident, with rising energy costs, inflation, and labor costs causing a crisis for companies like Deutsche Bahn. Hartnigk, thesupervisory board chairman, has called on the federal and state governments to provide simplified and comprehensive financial solutions to alleviate these pressures, as infrastructure modernization investments are crucial but cannot be funded by companies alone.
In the face of economically turbulent waters, the local transportation companies, such as Rheinbahn, are continually striving to promote eco-friendly mobility and maintain their indispensable role in the industry, despite the financial challenges they face in areas like finance and transportation.
