Germany’s long-distance rail market is about to see a shake-up. After decades of dominance by Deutsche Bahn, Italian private high-speed operator Italo is preparing to challenge the ICE with its own trains. 

The company plans to invest billions of euros, create thousands of jobs, and offer passengers an alternative to Deutsche Bahn’s familiar white trains — in bright Italian red.

MSC money

Italo, which operates under the official name Nuovo Trasporto Viaggiatori (NTV), is privately owned and has grown into a major competitor to Italy’s state operator Trenitalia. Since 2024, Italo has been backed by the cruising and shipping giant Mediterranean Shipping Company S.A. (MSC), now its largest shareholder. 

With strong financial support and more than a decade of experience running profitable high-speed routes in Italy, the company is preparing to expand north of the Alps.

Application for an operating licence

According to information obtained by the Frankfurter Allgemeine Zeitung, Italo intends to invest a high single-digit billion-euro sum in new high-speed trains and related services in Germany. A wholly owned German subsidiary has already been established, and an application for an operating licence was submitted in October. The company is reportedly planning hourly or two-hourly services between major German cities. More than 1,000 direct jobs are expected to be created, along with a similar number of indirect positions.

To secure these investments, Italo is seeking long-term planning guarantees, particularly in the form of 15-year framework agreements for track access. These agreements would give the company stable operating conditions in a market long dominated by Deutsche Bahn. 

However, such contracts are politically sensitive, as they affect how access to the rail network is managed and how competition develops in the future. The final decision rests with the Bundesnetzagentur über die Bedingungen des Netzzugangs or Federal Network Agency, Germany’s rail regulator.

Trenitalia v. Italo

Italo’s plans are considerably more advanced than those of its state-owned rival Trenitalia, which is also considering expanding into Germany. Trenitalia’s parent company Ferrovie dello Stato Italiane (FS) already operates in the German market through the regional rail provider Netinera and the freight operator TX Logistik. It is also involved in cross-border projects with Deutsche Bahn, such as proposed routes between Munich, Milan, and Rome.

The timing of Italo’s expansion plans is no coincidence. 

In Germany, the lack of competition in long-distance rail travel has long been criticised. Since the 1994 rail reform, private and regional operators have made significant inroads in regional and freight transport, where Deutsche Bahn’s market share has fallen to around 60% and 40% respectively. 

But in long-distance travel, the company still controls about 95% of the market. Flixtrain, with its green trains, remains the only notable challenger.`

Competitors have long argued that entering the German market is difficult. Track access charges – effectively a rail toll – are among the highest in Europe, and the allocation of train paths is often uncertain. Acquiring and maintaining high-speed rolling stock requires substantial upfront investment, and few companies can bear the risk.

Italo’s own success in Italy shows what can happen when competition is allowed to flourish. 

Since its launch in 2012, the company has transformed the Italian high-speed rail market. Initially, Italo struggled against Trenitalia and its control over the national infrastructure company RFI, both under the same corporate umbrella. Over time, however, regulatory reforms and the work of Italy’s transport authority ART created fairer conditions. The result has been a healthy rivalry that has benefited both companies and their passengers.

Trenitalia v. Italo in Italy

Today, Italo operates 51 high-speed trains across Italy, while Trenitalia runs 61. On the country’s busiest route between Rome and Milan, Italo runs 34 daily trains on weekdays, compared with Trenitalia’s 43. 

Both operators benefit from relatively low track access fees, with much of the investment in rail infrastructure funded by the Italian state and the European Union. Between 2021 and 2026, around €25 billion in public money is earmarked for FS.

Despite this progress, Italy’s rail network faces its own challenges. Between July and August 2025, around 20% of Italo’s trains were delayed, and Trenitalia’s Frecciarossa services recorded delays on 31% of journeys. 

Extensive construction work and mixed-use tracks, where high-speed and regional trains share the same lines, contribute to these problems. Consumer groups also argue that passengers are still not adequately compensated for delays.

Financially, Italo remains in solid shape. In 2024, it reported revenues of €911 million, with a net profit of €108 million, down about a third from the previous year due to higher costs and increased investment. The company continues to attract growing passenger numbers, and its brand has become synonymous with premium high-speed travel in Italy.

By entering Germany, Italo aims to replicate its domestic success in one of Europe’s most important rail markets. While the country’s ageing infrastructure remains a major obstacle, increased competition could bring long-term benefits for passengers — from better service quality to lower fares.

If all goes according to plan, Italo’s red trains could soon join Deutsche Bahn’s white ICEs and Flixtrain’s green carriages on Germany’s rails. For travellers, that would mean something new after decades of limited choice: real competition at high speed.

Alstom Avelia Stream?

Independent railway commentator Jon Worth shared the news on BlueSky. 

“Italo has a stronger incentive to do this than Trenitalia. They have deep pockets because of MSC money. But they’d need to order new trains to do this – likely Alstom Avelia Stream that Virgin Trains also wants”, is his reaction.

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