Rail projects in Stuttgart, specifically Stuttgart 21, continue to impose additional financial burdens upon them.
The Stuttgart 21 rail project, which includes the construction of a new main railway station, new railway stations, dozens of kilometers of railway tracks and tunnels, crossings, bridges, and the Stuttgart-Ulm railway project, including the high-speed line Wendlingen-Ulm, is set to undergo a phased opening starting from December 2026.
Long-distance and some regional traffic will commence using the new underground station in December 2026, while some regional traffic will continue to use the old terminal station until July 2027. This phased opening is necessary to relieve closures required for connecting the new infrastructure to existing tracks.
The project, which began construction in 2010, has been fraught with cost overruns. Deutsche Bahn currently estimates the total costs of the Stuttgart 21 project at around 11 billion euros, with a buffer of 500 million euros. The financing agreement from 2009 only regulates the distribution of costs up to around 4.5 billion euros, leaving at least 6.5 billion euros of additional costs with the company.
The dispute between Deutsche Bahn and the project partners revolves around the interpretation of a "talking clause" in the 2009 financing agreement. This clause is intended for dealing with possible cost increases, and states that Deutsche Bahn and the state will enter into discussions in such a case. However, the Administrative Court of Appeal in Baden-Württemberg has ruled that Deutsche Bahn must bear the billion-euro cost overruns of the Stuttgart 21 rail project alone.
Deutsche Bahn had previously argued that the "talking clause" obligates a joint financing responsibility, but other partners argue that fixed amounts had been agreed, and the clause only obliges discussions. The railway may have to bear billion-euro sums, as the cost overruns are likely to remain with the company after the decision.
The railway could potentially still appeal to the Federal Constitutional Court, but a court spokeswoman said that the railway's administrative court route is exhausted. The Administrative Court had previously dismissed corresponding lawsuits by Deutsche Bahn against several parties, including the state of Baden-Württemberg, the city of Stuttgart, the Stuttgart Region Association, and Stuttgart Airport. The railway may have no further legal recourse, as the Stuttgart judgment is now final and binding, according to the VGH.
The Stuttgart-Ulm railway project, which includes Stuttgart 21, was opened in parts starting from 2016, with the high-speed line Wendlingen-Ulm being opened in 2022. The completion of the entire project, however, remains a significant challenge due to the cost overruns and the ongoing dispute between Deutsche Bahn and its project partners.
- The Stuttgart 21 rail project, a major transportation infrastructure initiative, has been facing financial challenges, with Deutsche Bahn estimating costs at around 11 billion euros, considerably exceeding the agreed-upon distribution of costs from the 2009 financing agreement.
- As the project progresses towards a phased opening from December 2026, it is apparent that the business sector, including real-estate and public-transit, will be significantly impacted by the project's cost overruns and future financial implications.
- Investors may be cautious when considering opportunities in the industry and finance sectors, given the ongoing dispute between Deutsche Bahn and its project partners over cost overruns, as the final judgment may set a precedent for future infrastructure projects.
- The completion of the entire Stuttgart-Ulm railway project, which entails significant investments in railways, crossings, bridges, and tunnels, remains uncertain due to the financial turbulence surrounding the project.
