Railway management role goes to Evelyn Palla in the future
Deutsche Bahn, Germany's national railway company, is currently grappling with a significant challenge in maintaining punctuality due to the high volume of construction works along its tracks. Most long-distance trains pass at least one construction site during their journey, causing delays.
In an attempt to address these issues, a new construction management system is expected to bring relief. Meanwhile, the company is facing a severe crisis, with only around 60% of long-distance trains being on time in August, defined as up to 5 minutes and 59 seconds late.
Amidst this crisis, Evelyn Palla has been proposed to become the new CEO of Deutsche Bahn, pending approval by the supervisory board. Palla, who hails from South Tyrol, has been with the company since 2019 and brings a wealth of experience from her previous roles.
Palla began her career at Infineon Technologies AG in 1997 and later worked for Eon in Munich, Cologne, and Milan from 2003. She served as the board member responsible for regional traffic at ÖBB Personenverkehr AG in Vienna from 2015 and held the position of supervisory board chairwoman of ÖBB Postbus AG during the same period.
Palla succeeds Richard Lutz, who has led Deutsche Bahn since early 2017. The financial need for Deutsche Bahn is vast, and it remains to be seen how much money the minister can secure for the new rail chief from Finance Minister Lars Klingbeil (SPD) in the future.
The development of Deutsche Bahn's infrastructure and rail operations heavily depends on political support and funds provided by the government. The new federal strategy for Deutsche Bahn, titled "Agenda for satisfied customers on the rails," aims to make the train punctual, safe, and clean, and to make the company faster, leaner, more powerful, and more economical.
However, the contents and level of detail of this new strategy are yet to be unveiled, with the official announcement set for Monday. The strategy includes plans to modernise around 40 heavily loaded routes by 2036, with the aim of completely closing down routes for months at a time to carry out as many repairs as possible.
Despite recent improvements, Deutsche Bahn still posted a hefty loss of 760 million euros at the end of the first half of 2025. Economic figures for Deutsche Bahn have been lackluster for years, despite a recent slight improvement.
As Palla takes over Deutsche Bahn, she faces a daunting task to turn the company's fortunes around and improve its operational performance, which has been affected by the dilapidated infrastructure. The new CEO's appointment comes at a critical time for Deutsche Bahn, with the need for change more pressing than ever.
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