Privatisation of Deutsche Bahn

Story here from BBC

Is it just another chance for a small group of people to get rich on public money?

The beginning of the end. I guess if the Germans couldn't learn about the success of smoking bans in other countries they're equally as incapable about learning about the failures of train privatizations.

Dear German Government people responcible for the trains.

To test if the privitisation of your rail network is a good idea please do the following...

Start in reading at 07:30 in the morning and try to make it to Newcastle.

Please report back to us how long it took and just how crap and shitty your journey was.

Also please take into consideration this isnt the UK and your workers have the balls to strike as your predasessors did not bring up the current generation with the the fear of being unemployed.

It's depressing how Germany doesn't learn from the mistakes of other countries. Rail privatisation is a good example: public services need to be run for the public good, but this is incompatible with the demands of shareholders. They've already hived off many lines to Arriva and Veolia (Connex), companies which are continually being fined in the UK for shoddy service. In fact, Connex actually manged to lose their franchise, which is quite an achievement. My train from Zürich arrived 15 minutes late yesterday because it was delayed by an Alex (Arriva) train.

Switzerland runs private train networks. And they are probably some of the best in Europe.

Since 1987, the Japanese began the successful privatization of a critical part of their rail transportation system. The Japan Railways Group includes the ominous Shinkansen and was incorporated after charges of management inefficiencies, profit losses, and fraud of the government-owned system.

Indeed it is depressing that Germany, or TT posters, don't learn from the benefits learned in other countries.

Better that than not learning from the failures in other countries.

The tracks will not be privatised. Apparently Russian State Rail is interested in buying a stake in DB. Should see how Frau. Chancellor will block that.

The "private" companies in Switzerland are generally owned by the Cantons, the Swiss Confederation and the railway networks of neighbouring countries. There are very few shareholders involved.

The SBB is 100% owned by the Confederation and the cantons:
"On 1 January 1999, SBB was transformed from a federally controlled institution into a joint-stock company wholly owned by the Swiss Confederation. As SBB AG has to comply with specific federal rules, it is classified as a «joint-stock company under special law». Every four years, the federal government sets out performance goals for SBB. On this basis, the Board of Directors of SBB AG, headed by Thierry Lalive d’Epinay, works out the company’s strategy. The Management Board, headed by Benedikt Weibel, is responsible for implementing this strategy."
http://mct.sbb.ch/mct/en/unternehmensbroschuere.pdf

As for Japan, four of the seven "private" Japan Rail companies are owned by the Japanese government. Only three are actually publicly traded.
http://www.japanrail.com/JR_investorrelations.html

FYI: Private does not have to mean publicly traded...

But it is inteded that all companies will be sold off...

Well, here that's the issue. Deutsche Bahn AG is already a stock company with 100% ownership by the German government.

Deutsche Bahn cannot and will not be completely privatized ( atleast in the foreseeable future). This 25% stake sale is an effort to raise cash, so that DB can buy up whatever remaining rail operators exist in west Europe and make inroads into East Europe in the name of infrastructure development. The fact that German government regards the networks ( DB Netz) as a national security issue is the greatest asset of Deutsche Bahn. Since the various divisions - logistics, passenger transport (all forms) and the network are intrinsically ( forcibly) tied together as one company, Deutsche Bahn, the whole of Deutsche Bahn is sovereign property and hence enjoys many advantages. Deutsche Bahn bosses ( and lot of members of the government) do not want to lose this advantage. Because of this DB can raise money on capital markets at an AA1 ( "Any property of a sovereign land has just one point less than the Nation"s rating) rating compared to other railway operators. With acquisitions increasing, debt raised in London is not enough and hence the stake sale.

You think DB's customer service was poor when it was a subsidized entity...now imagine how they will cut corners in personnal customer service training. Expect more bad attitudes, power trips, strikes and lazy dispositions.