Italo and Siemens Sign €3 Billion High-Speed Train Deal for German Market Entry
Italo's Expansion into the German Rail Market
ROME, July 20 (Reuters) - Italian rail operator Italo Holding said on Monday it had signed a contract worth around €3 billion with Siemens Mobility to buy 26 high-speed trains, with an option for 14 more, to support its planned 2028 entry in the German market.
Investment and Market Impact
The company's total €3.6 billion ($4.12 billion) investment in Germany will see services begin on two main German corridors by mid-2028, introducing new competition to one of Europe's largest rail markets.
Key Details of the Siemens Mobility Agreement
- The agreement with Siemens Mobility for the trains also includes a 30-year maintenance contract.
Operational Plans and Service Launch
- Operations are planned to launch in mid-2028, running 50 daily services connecting 18 cities on the Munich-Cologne-Dortmund and Munich-Berlin-Hamburg corridors.
Economic and Employment Impact
- Italo expects to create 2,500 around jobs in Germany, including in the supply chain, and to invest in train stations and IT infrastructure.
Manufacturing and Maintenance
- The trains will be manufactured at Siemens' Krefeld plant and maintained at its depot in Dortmund.
Regulatory Developments
- Germany's network regulator last month presented a proposal to limit Deutsche Bahn's use of long-distance rail capacity on some congested routes, opening the way for rivals like Italo.
Financial Context
($1 = €0.8747)
Reporting Credits
(Reporting by Antonella Cinelli, editing by Alvise Armellini)
