Germany leads in cheap, national mass transit


Huge savings: Trams are seen at the Hackescher Markt public transport stop in Berlin. The Deutschland-Ticket is proof that an interconnected, simplified transportation network is possible in Germany. — Bloomberg

BERLIN: Germany will start one of the most affordable public transit offers anywhere in the world today, setting a new benchmark to encourage consumers to ditch their cars and putting pressure on Berlin to make the shift work.

For just €49 (RM240) a month, holders get unlimited travel on all city buses, subways and trams in every municipality across the country.

That means with one ticket – which breaks down to less than the cost of one espresso a day – you can ride buses along the shores of Lake Constance on the Swiss border and traverse Hamburg’s harbour on the North Sea.

Local and regional trains are included in the so-called Deutschland-Ticket, but not faster intercity services, as the idea is to encourage people to re-route short-distance travel.

The pass builds on the popular €9 (RM45) ticket that was introduced last summer to help manage the energy crisis triggered by the war in Ukraine.

While the new offer is notably more expensive, its proposed run of at least two years far exceeds its predecessor’s three-month trial and indicates public transport is becoming a component of national policy rather than just a local service.

As part of the rollout, Chancellor Olaf Scholz visited a bus depot in Berlin, throwing his weight behind the plan but also tying his reputation to its success.

The shift is sorely needed as the home of BMW, Mercedes-Benz and Porsche has struggled to make much of a dent in transport emissions.

The sector has regularly missed targets for reducing carbon dioxide output and is well off the pace needed to nearly halve pollution by 2030.

The new ticket – available only by subscription – is priced well below normal monthly rates. To offset initial estimates of lost revenue, the federal government will provide €1.5bil (RM7.5bil) a year and Germany’s 16 states have agreed to contribute the same amount.

Any additional costs will also be split.

The plan though doesn’t include investment in more services, which will likely limit its impact, according to Philipp Kosok, a public transport analyst at think tank Agora Verkehrswende.

“There is currently not one euro earmarked for expanded operations,” he said. “We need a prioritisation that says rail before road. We don’t currently have that in German politics.”

Despite the criticism, agreeing on the ticket was a major political act for Scholz’s government. It involved getting more than 60 transport authorities to accept a digital-only ticket, a revolution for Germany where paper slips are often still the norm.

Germany’s transit systems generally don’t have turnstiles to control access.

Passengers can hop on and off, but there are spot controls and fines for not having a valid ticket can be steep. In some regions, local operators don’t have the technology to read chip cards or scan apps and may still demand printed proof. This may help kick-start a broader upgrade.

“The Deutschland-Ticket is an important step, which ultimately can help get more consumers onto trains,” said Naren Shaam, chief executive officer and founder of Omio Group, an online travel comparison and booking site.

“It’s also proof that an interconnected, simplified transportation network is possible in Germany.”

For commuters like Claudia Jutz, it’s a rare instance of getting more for less. “It’s a huge savings,” said the 47-year-old billing clerk, who previously paid over €180 (RM894) for a pass from her home on the outskirts of Munich.

Jutz was one of dozens of would-be buyers in a queue that snaked its way some 80 metres through a transit station below the Bavarian city’s famed neo-gothic town hall.

Armed with more travel freedom, she plans to visit nearby Salzburg in Austria with a friend, “which is something we wouldn’t have done otherwise,” she said.

That’s one of the criticisms. The flat rate encourages people to take more leisure trips, adding stress to Germany’s already-overloaded networks.

Last summer’s ultra-cheap offering led to widespread disruptions as passengers crammed into trains and buses. This time, operators anticipate less of a crush.

“We don’t expect more passengers all of a sudden from one day to the next, as was the case with the €9 ticket,” said a spokeswoman for national rail operator Deutsche Bahn AG.

“We’re assuming a noticeable, steady increase in demand,” including more traffic on weekends.

The impact of the ticket could ripple through to other countries by taking the potentially radical step of positioning transit systems as a public good to which all deserve affordable access.

It could also be a model for others in the European Union, as the bloc aims to become climate neutral by 2050.

“Reinforcing the use of railways is an important priority for European governments,” Gonzalo Cantabrana Fernandez, a senior director at S&P Global.

But the impact might be modest in the near term. Germany’s unreliable train system serves as a disincentive for many consumers. On top of that, the lack of service in the countryside means people there are all but shut out.

“In rural areas, the willingness to buy a Deutschland-Ticket is low,” said Katharina Luca, a spokeswoman for German auto club ADAC, which surveyed members and found just 15% plan to use it.

Germany’s transport system has been a source of tension as climate activists regularly block traffic to protest the sluggish progress on green goals. — Bloomberg

   

Next In Business News

Bank Negara: SMEs need to swiftly integrate ESG practices into business operations
TM's 3Q net profit declines to RM465.03mil
KLK FY24 net profit declines 29.2% to RM590.96mil
IJM Land breaks ground on new aparthotel at Royal Mint Gardens
Sunway expects better performance from all its business segments
MBSB posts higher 3Q net profit of RM122.08mil
Leong Hup reports higher net profit in 3Q24
Ringgit weakens after Trump announces new tariffs on Mexico, Canada
WCT posts 3Q net profit of RM173.22mil
Guan Chong 3Q24 net profit up 68.7% to RM57.2mil

Others Also Read