Italian high-speed rail operator Italo is preparing a major expansion into Germany with a €3.6 billion investment plan aimed at challenging Deutsche Bahn’s dominance of the country’s long-distance rail market.

The company, formally known as Nuovo Trasporto Viaggiatori (NTV), intends to launch domestic German high-speed services in 2028 using Siemens-built Velaro trains. The move would make Italo the first private operator to compete directly with Deutsche Bahn’s ICE services on Germany’s domestic high-speed network.

Italo executives believe the project could reshape the German rail market in much the same way as the company transformed high-speed rail in Italy after launching operations there in 2012. Since then, passenger demand for Italian high-speed rail has more than doubled while average ticket prices have fallen by around 40%.

Chief executive Gianbattista La Rocca said Germany represented the first step in the internationalisation of the company. He confirmed that Italo had already established a German subsidiary, obtained a railway licence and started the process of securing safety certification.

The operator plans to begin services in April 2028.

Network to connect 18 German cities

Italo plans to connect 18 German cities across a network of around 1,300 km with more than 50 daily high-speed services.

The first routes would focus on the busy Munich–Cologne–Dortmund corridor, where hourly services are planned, and the Munich–Berlin–Hamburg route, which would be served every two hours. These are among Germany’s busiest long-distance corridors and currently form a central part of Deutsche Bahn’s ICE network.

The company intends to purchase 26 Siemens Velaro trainsets, with an option for a further 14. The trains would be based on the same platform already used for Deutsche Bahn’s ICE 3 and ICE 3 neo fleets.

Unlike Italo’s red trains in Italy, the German fleet would be painted blue.

The €3.6 billion investment package would include €1.2 billion for rolling stock procurement and €2.4 billion for maintenance over a 30-year period, alongside spending on staff training, station facilities and IT systems.

Former Ferrari chairman Luca Cordero di Montezemolo, who founded Italo and remains chairman of the company, confirmed that a contract with Siemens was effectively ready to be signed.

Crucial May deadline

A key deadline now hangs over the project.

Italo says it needs guarantees from DB InfraGO, Deutsche Bahn’s infrastructure subsidiary, by the end of May regarding access to train paths and station facilities. Without those assurances, the company warns that it may not be able to sign the Siemens contract in June.

La Rocca said any delay in signing the order would significantly extend train delivery times and could undermine the economic sustainability of the project.

Montezemolo argued that large-scale private investment in rail required long-term certainty rather than annual timetable allocations. He said investors needed stable access agreements in order to justify multi-billion-euro commitments and to provide reliable long-term services for passengers.

The operator is also seeking access to station infrastructure including ticket offices, lounges and ticket machines on the same basis as Deutsche Bahn.

Italo expects lower fares and market growth

The company argues that competition would benefit passengers and strengthen Germany’s rail market overall.

Montezemolo said the Italian experience had demonstrated how competition could reduce fares, improve service quality and stimulate demand. According to the company, average ticket prices in Italy have fallen by around 40% since Italo entered the market, while passenger numbers have increased sharply.

Executives believe Germany today resembles Italy before competition emerged, when rail travel was often seen as a less attractive transport option.

Italo estimates that Germany’s high-speed rail market currently carries between 110 million and 120 million passengers annually and could grow by at least 40% if competition increases.

The operator also pointed to developments in Spain, where the arrival of several competing high-speed operators led to substantial passenger growth and lower ticket prices.

In Germany, Italo plans to introduce three travel classes. Alongside standard and first-class accommodation, the company intends to offer a premium ‘Club Executive‘ category aimed at business and high-end leisure travellers.

Montezemolo said the company would place strong emphasis on design, comfort and passenger experience, drawing on lessons from his years in the automotive industry. He explained that the interiors had been carefully designed down to small details such as seating layouts, charging points and materials.

Thousands of jobs could be created

The project is expected to generate significant industrial and operational employment in Germany.

Italo estimates that around 2,500 direct and indirect jobs would be created through rail operations and services. More than 5,000 industrial workers could also be involved in train manufacturing and supply chains, particularly in North Rhine-Westphalia where Siemens produces Velaro trains.

The German business would operate as a fully local subsidiary under German management. Former Berliner Verkehrsbetriebe (BVG) chief executive Eva Kreienkamp has reportedly been appointed to lead the operation.

The expansion is supported by Italo’s shareholders, led by shipping giant MSC alongside Global Infrastructure Partners and Allianz.

Montezemolo also highlighted growing links between rail and maritime transport, noting MSC’s investments in Hamburg port and its extensive cruise operations in Italy. He said integrated transport connections between ports and rail services would become increasingly important for Europe’s future transport system.

Pressure grows on Deutsche Bahn

The planned market entry comes at a difficult moment for Deutsche Bahn, which has faced growing criticism over delays, infrastructure problems and operational inefficiencies.

Germany’s rail infrastructure is currently undergoing a major modernisation programme focused on 40 important corridors through to 2036. Although the works are expected to cause disruption in the short term, Italo believes the upgraded network will ultimately support greater capacity and increased competition.

La Rocca said the infrastructure works did not concern the company because Italo expected to become fully operational once much of the modernisation programme had been completed. He added that the company would contribute approximately €250 million annually in track access charges to the German infrastructure manager.

Critics of Germany’s rail system argue that Deutsche Bahn still benefits from structural advantages because rail operations and infrastructure remain within the same state-owned holding company.

Montezemolo said independent regulation would be essential to guarantee fair competition, arguing that competitors needed equal access to infrastructure and station facilities.

Investment in Italy continues

Despite the German expansion plans, Italo says it remains committed to further investment in Italy.

The company plans to increase its Italian fleet from 51 trains to 63 over the coming years, with the first new Alstom-built 300 km/h trains expected to enter service by the end of 2027.

Italo is also investing in onboard improvements including Starlink internet connectivity, 5G systems, upgraded interiors and enhanced HEPA air filtration systems similar to those used in aircraft.

Executives insist that the German project is intended to expand the overall rail market rather than weaken incumbent operators. La Rocca argued that competition had already proven in Italy that high-speed rail could become more attractive, more efficient and capable of drawing significantly larger numbers of passengers away from other forms of transport.

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