The Italian private operator Italo aims to enter Germany’s high-speed rail market with a EUR 3.6 billion investment plan, with the first trains scheduled to enter service in 2028. The project aims to enter one of Europe’s largest rail markets and launch direct competition with Deutsche Bahn’s ICE services.
According to reports in the Italian and German press, Italo is considering purchasing 26 new trains from Siemens, with an option for another 14. The purchase of the trains alone would amount to approximately EUR 1.2 billion, while the remaining EUR 3.6 billion would cover 30 years of maintenance, staff training, investments in stations, and the IT services necessary to launch operations.
Initial Routes
Italo’s plan is to connect 18 cities on a network of approximately 1,300 kilometers, with up to 50 services per day. The first corridors under consideration are Munich–Cologne–Dortmund and Munich–Berlin–Hamburg, which are precisely some of Germany’s busiest traffic corridors. Italo is banking on the idea that, just as in Italy, more competition could lead to greater capacity, more passengers, and more attractive fares.
Italo CEO Gianbattista La Rocca said that Germany is the first step in the company’s international expansion. According to him, the German subsidiary has already been established, the rail license is in place, and the process for the safety certificate is underway. At the same time, the company has already tied its discussions with Siemens to a very strict timeline.
The stakes regarding routes and slots
A critical point for the project is access to infrastructure. Italo needs the German infrastructure manager, DB InfraGO, to quickly provide a clear picture of the routes and station spaces the company will require.
Without this clarification, the signing of the contract with Siemens risks being delayed, and the delay would directly affect the delivery date of the trains and the industrial sustainability of the entire project.
The German press notes that this is also one of the most sensitive issues regarding the entry of a new private operator into the market: in Germany, capacity allocation is largely done on an annual basis, and for an investment of this scale, companies seek greater predictability.
Siemens Velaro, the same family as the ICE 3neo
The trains Italo is considering would be from the Siemens Velaro family, manufactured at the Siemens plant in Krefeld. It is the same technical platform used for the ICE 3neo, which could simplify the approval process for the German network and help bring the trains into service more quickly. Reports on the subject indicate that the new trains would reach 320 km/h.
Behind the project are Italo’s shareholders, led by MSC, alongside GIP, Allianz, and the founding partners. La Rocca says the group views the medium- and long-term development of the high-speed market as an industrial project, not just a financial one.
The Bet: To Repeat the Italian Model
Italo is basing its German offensive on the experience gained in Italy, where competition with the FS group has radically transformed the high-speed market. The company claims that, following its entry into the market, demand has risen sharply and fares have fallen, without operators falling out of the profit zone. Now, Italo is trying to apply the same logic to the German market, which it estimates at 110–120 million passengers per year, with potential for further growth.
The company says the German project could generate around 2,500 jobs, both direct and indirect, in addition to the personnel needed for train construction. The stated goal is to create a local team and structure in Germany, supported by Italo’s experience in Italy.
Italo isn’t giving up on the Italian market either
At the same time, Italo says it is continuing its investments in Italy as well. The fleet is set to grow from 51 to 63 trains, with the first new deliveries expected by the end of 2027. The company also mentions service improvements, including better connectivity and the modernization of train interiors.
For now, Italo’s German venture remains contingent on access to infrastructure and the timeline of the contract with Siemens. But if the project comes to fruition, Germany could become the next major European market where competition in the high-speed segment begins to seriously chip away at the incumbent operator’s monopoly.
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