why not DB?

[oltmannd]

I was asked in another thread:

Don:  Along with contracting for the DB web site, why not sub-contract with DB (actually DBAG)  to develop and run a passenger train network?

Here's my answer:

I think DB does have a lot of expertise that would be transferable to the US.  They could bring quite a bit to the operation of the NEC.  

But, I think they would be short on two big pieces.  

One is they have no relationship to the governments they would have to deal with.  The US is politically different than Germany.  If there is one thing Amtrak has, it's the political connections and relationships.

The other would be an understanding of the relationship between the host roads and passenger train operators.  The business model for moving freight is quite a bit different here than in Europe.  The problem in Europe is interoperability and national boarders - lots of politics.  The problem here is negotiating and implementing good tenant agreements - lots of tough negotiating - "just business".

[schlimm]

Sorry Don, i was half jesting.  The politics and the fact that outside the NEC and Michigan, the tracks are owned by private freight railroads, whose priorities differ.   But where the tracks are Amtrak owned, DB or SNCF or Virgin Rail or Northern Rail or the new private Hamburg-Köln passenger service operator** could do a good job of providing a better service.  Some info below:

**Hamburg - Köln Express (HKX) is a joint venture which intends to operate a long-distance route between Cologne and Hamburg. The joint venture is run by consortium comprised of Berlin-based rail company Locomore Rail, US-based railway investment company Railroad Development Corporation and UK-based investment advisor Michael Schabas.

An intercity express (ICE) currently connects Hamburg to Cologne. The Deutsche Bahn-operated ICE network runs 259 trains throughout Germany, connecting various cities in Germany as well as Austria, Denmark and Switzerland.

DB Netze, a subsidiary of Deutsche Bahn, owns and operates the German railway system. It also owns the rail infrastructure countrywide. Locomore had planned to use the tracks of DB Netze for its HKX service. However, DB rejected Locomore's request, prompting the latter to go to court. This, the partners claim, has delayed progress in the HKX project.

French railway company SNCF is also planning to enter the German rail transport market and applied for permission in October 2009. It plans to run two trains from Strasbourg to Hamburg by 2011. One of the lines will pass through Cologne.

Though DB was to share its infrastructure with other new players in the market, it has rejected the requests of Locomore and SNCF. While Locomore went to court, SNCF complained to the European Commission.

The EU plans to deregulate the European railway sector by 2014, paving the way for more competition. The EU is hoping to bring changes to the railway system in three areas: bringing in more competition to the market, ensuring interoperability and safety of rail networks, and developing rail infrastructure.