Experience with competitive tendering in Germany

This paper describes how the German railway sector was fundamentally reformed in 1994. The state-owned West German carrier, Deutsche Bundesbahn, was consolidated with the former East-German rail undertaking, restructured and re-established as a state-owned joint stock company. Aims of the reform were a more commercial orientation of the newly established Deutsche Bahn AG (DB) and the introduction of competition. In the rail freight market and the long-distance rail passenger market an open access regime was introduced.