Rail's financial burden persists due to ongoing expenses associated with Stuttgart 21 project, as per court ruling.
In a recent ruling, the Administrative Court of Appeal in Baden-Württemberg has rejected Deutsche Bahn's (DB) application for leave to appeal against the decision that the railway company must bear the additional costs of the Stuttgart 21 rail project alone. This decision means that DB may have to pay billions in additional costs.
The Stuttgart 21 project, which involves the construction of a new main railway station in the state capital, reorganization of the Stuttgart rail hub, and the new construction of the high-speed line Wendlingen-Ulm, has been a point of contention between DB and the project partners. The key issue is the interpretation of a clause in the 2009 financing agreement, referred to as the "talking clause."
This clause, designed to address possible cost increases, states that DB and the EIU (railway infrastructure companies) and the state would enter into discussions if costs exceeded initial estimates. However, DB maintained a "joint financing responsibility," while the other partners believed fixed amounts had been agreed upon, and the clause merely obliges to enter into discussions.
The current additional costs of at least 6.5 billion euros are likely to remain with DB following the decision. The original project cost estimate was €2.8 billion, but the agreement included a mechanism that acknowledged possible cost overruns of up to €1 billion. Under this clause, Baden-Württemberg agreed to cover up to €780 million of any increase, while DB agreed to cover up to €220 million.
This arrangement has shaped the financial dynamics and dispute landscape of Stuttgart 21. While DB is responsible for a smaller portion of the potential budget increases, the state of Baden-Württemberg bears a greater financial burden, protecting DB from full exposure to overruns.
Construction on the Stuttgart 21 project began in 2010, and the commissioning date has been postponed several times. DB recently announced that it would only partially commission Stuttgart 21 by the end of 2026, with long-distance and some regional traffic using the new underground station from December 2026, and some regional traffic continuing to end at the old terminal station until July 2027.
The heart of Stuttgart 21 is the new underground main station, which will be a through station unlike the current terminal station. The Stuttgart-Ulm rail project, in addition to Stuttgart 21, also includes the new construction of the high-speed line Wendlingen-Ulm, which was opened in 2022.
The Administrative Court of Baden-Württemberg had previously ruled that DB had no claim to the other partners in the project bearing the additional costs. The VGH stated that DB has not presented any grounds that would justify the admission of the appeal. Theoretically, DB could still appeal to the Federal Constitutional Court. However, with the Stuttgart judgment being final, DB's legal recourse is exhausted.
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The decision from the Administrative Court of Appeal in Baden-Württemberg indicates that Deutsche Bahn (DB) will bear the additional costs for the Stuttgart 21 rail project, potentially billions, as other project partners are not obligated to share the costs. The Stuttgart 21 project, incorporating the construction of a new main railway station and the new high-speed line Wendlingen-Ulm, is a significant endeavor within the transportation industry, with finance implications stretching into various sectors.
