Sources: German railway regional chief to take over as chief exec

The head of DB Regio, Germany’s regional rail division, is set to become the head of the country’s ailing national railway, the Deutsche Bahn, information obtained from government sources by dpa on Saturday showed.

German Transportation Minister Patrick Schnieder has proposed Evelyn Palla for the position, but her appointment must still be confirmed by the railway’s supervisory board. The board’s next meeting is scheduled for Tuesday.

Palla will succeed Richard Lutz, who led the state-owned company since early 2017. In mid-August, Schnieder announced his intention to appoint a new chief executive to implement a fresh strategy for the company. That strategy is expected to be revealed on Monday.

One of Germany’s toughest jobs

Palla takes over the railroad in the midst of a severe crisis. In August, only about 60% of long-distance trains ran on time. The infrastructure is in poor condition and is considered the main reason for the company’s operational shortcomings.

Financially, the company has also struggled for years, although there has been a slight improvement recently. Deutsche Bahn has attempted various plans in recent years to get back on track, but it has not inspired much confidence in achieving timely improvements.

At present, most long-distance trains encounter at least one construction site during their journey across the country. A new construction management system is expected to bring improvements by scheduling construction work into specific time windows, aligning it with the timetable rather than the other way around.

Palla, who is from South Tyrol in Italy, has been with Deutsche Bahn since 2019. Born in 1973, she previously worked at the Austrian Federal Railways (ÖBB) in Vienna, where she became a board member of the passenger train division in 2015, responsible for regional transport.

While Palla is likely to have the backing of the transport minister, it remains to be seen whether this will be enough to turn the company around, given the funding needed to improve the long-neglected German railway.