63% of German freight rail market is covered by private companies, only 65% of all carriers are in profit
Author: Lubomir Cech
02.01.2026 | Germany’s Federal Network Agency (Bundesnetzagentur) has published its latest Market Investigation Railways, presenting a detailed overview of developments in the rail sector for the 2024 financial year. The report shows that competition in rail freight continued to intensify, even as overall freight volumes declined slightly due to economic conditions and network constraints.
According to the Bundesnetzagentur agency’s analysis, non-federally owned rail freight operators further increased their share of the market in 2024. Competitors accounted for around 63% of total train-kilometres in rail freight services, continuing a multi-year trend of shifting market shares away from the incumbent operator. The Bundesnetzagentur notes that the decline in freight performance primarily affected DB Cargo, while private and regional operators were better able to retain traffic.
The report highlights that the economic situation in rail freight remains challenging overall. Only 65% of rail freight operators recorded a positive operating result in 2024, down from 76% in the previous year. The combined positive result of profitable operators amounted to approximately EUR 0.1 billion, while losses totalled around EUR 0.5 billion. These losses were largely attributable to DB Cargo, whose negative result continued to weigh heavily on the sector’s overall balance.
When considering non-federally owned operators separately, the picture is more stable. Competitor rail freight companies as a group remained profitable in 2024, achieving an average revenue margin of just over 2%. By contrast, the overall rail freight market continued to post a negative margin of around –7%, underlining the structural imbalance between the incumbent and the rest of the market.
Rail freight revenue reaches new level
Despite weaker transport volumes, rail freight revenue in Germany exceeded EUR 7 billion for the first time. The Bundesnetzagentur compares this figure with road transport, estimating that moving the same volume of goods by lorry would generate additional costs of around EUR 5 billion for shippers. This comparison reflects differences in external and system-related costs rather than a direct pricing comparison.
Long-term growth contrasts with short-term pressures
Looking at longer-term trends, the report confirms that rail freight has expanded more strongly than other transport modes over the past two decades. Between 2005 and 2024, rail freight performance increased by 41.4%, while road freight grew by 18.3% over the same period. Total freight transport in Germany increased by 16.5%. This places rail as the fastest-growing mode in relative terms, even though its market share remains constrained by operational and structural factors.
Infrastructure and market conditions remain critical
The Bundesnetzagentur identifies several factors limiting rail freight growth in the short term. These include weak economic activity, restricted infrastructure availability, extensive construction work on the network, and strong intermodal competition from road haulage. The report also points to ongoing operational challenges at DB InfraGO, which affect network reliability and capacity for all users.
Combined transport services are described as particularly exposed to these conditions, as they compete directly with road transport on time-sensitive corridors and are sensitive to infrastructure disruptions.
Policy measures with limited impact
In its assessment of policy measures, the agency highlights two instruments that have supported rail freight demand: the partial allocation of truck toll revenues to rail infrastructure investment and financial support for single wagonload services. While both measures have contributed to stabilising traffic, the report notes shortcomings in implementation and limited scope, which restrict their overall effect on modal shift.
The Bundesnetzagentur concludes that competitive rail freight operators continue to gain market share and operate profitably under difficult conditions, while the sector as a whole remains constrained by infrastructure, economic pressures, and an uneven competitive environment between transport modes.