Politics

Project Stuttgart 21 could become almost two billion euros more expensive

Cost explosion at Stuttgart 21: Insiders predict eleven billion euros, issue of additional costs occupies courts.

Eulerpool News Dec 9, 2023, 3:00 PM

The planned Stuttgart21 railway line, an ambitious project to relocate the Stuttgart central station underground, is facing further cost increases, according to insider information. These are estimated to amount to around eleven billion euros, nearly double the original estimate from 2010. The exact amount was reported by the news agency Reuters and the German Press Agency, citing informed sources, and reflects the latest cost estimate. Previously, there have already been numerous, sometimes drastic, increases.

In a secret report, it was recently mentioned that there would be additional costs amounting to 614 million euros, which would lead to a total amount of almost ten billion. Now, the German Railways is revising its calculation once again and additionally planning a buffer of 500 million euros, which raises the financing framework to just under 11.5 billion euros. This is reported by individuals who are familiar with the internal figures, according to Reuters. However, a spokesperson for the Railways declined to comment on the reports.

At a recent meeting of the steering committee for Stuttgart21, the project partners emphasized that further cost increases should be expected. "The indicators that we will not be able to stay within the cost framework have become so concentrated that we now urgently need to discuss it internally," expressed Berthold Huber, Infrastructure Director at Deutsche Bahn, last Friday with concern. Significant cost increases have been observed in all construction activities. The total costs of the project will finally be discussed by the Supervisory Board of Deutsche Bahn on December 18. According to the Minister of Transport of Baden-Württemberg, Winfried Hermann, individual tenders have already seen cost increases of 100 to 200 percent.

The Green Party politician emphasized that the previous plans must now be scrapped. The management cites a general cost increase in the construction sector, especially in the last two years, which amounts to about 30 percent, as the main reason for the renewed cost increases. The project partners are already fighting in court over the question of who has to bear the additional costs of Stuttgart21. The project's core aim is to relocate the Stuttgart main train station underground and connect it to high-speed routes through tunnels.

The Stuttgart airport should also be accessible via this route. In addition, the areas of the current train station are to be used for residential purposes. However, the project has been hotly debated from the beginning and has already led to heated debates during the planning phase. Critics complained that the costs were not proportional to the benefits for transportation. After construction began, there were repeated clashes between demonstrators and the police, resulting in numerous injuries.

The protests, in which partially more than 50,000 people participated, ultimately led to the referendum in 2011 in the entire state of Baden-Württemberg. Around 60 percent of the voters spoke in favor of the continued construction of Stuttgart21 at that time. The original opening date also had to be corrected repeatedly. While shortly after the start of construction there was still talk of completion in 2019, the railway company named December 2025 as the new starting point in 2018. However, a railway spokesperson emphasized that they still adhere to this timeframe.

Own the gold standard ✨ in financial data & analytics
fair value · 20 million securities worldwide · 50 year history · 10 year estimates · leading business news

Subscribe for $2

News