Expert opinion on the financing of public transport in the VRS

Operating public transport in the area covered by the Rhine-Sieg Transport Association (VRS) costs a lot of money. This not only includes funding for personnel, vehicles and energy, but also investments in future-proof technologies. Added to this are the costs for the urgently needed expansion of public transport services.

Expert opinion confirms financial requirements

The Rhine-Sieg Transport Association has commissioned mobilité Unternehmensberatung in Cologne to prepare a report to clarify the financial requirements for operating an expanded public transport service in the VRS area.

The central scenario depicts an expansion of around 60 percent by the year 2030 and is therefore in line with the state policy objectives set out in the coalition agreement. In order to achieve the coalition target for all cities and municipalities in the VRS area, at least 870 million euros would have to be spent annually. This means an additional funding requirement of at least 300 million euros per year compared to the status quo. Due to the current high cost increases (personnel, energy, etc.) and the prescribed investments in alternative drive systems, this additional requirement is expected to rise to up to 500 million euros per year in the coming years.

Alternative financing models

In addition to quantifying the costs, the consultants were tasked with identifying options for alternative financing models. As part of a comprehensive legal and economic assessment, they identified six instruments from a variety of approaches to beneficiary financing that could supplement the two currently existing financing pillars for public transport - ticket revenues and public funds:

• tolls
• Parking space management
• Basic public transport contribution
• citizen ticket
• Vehicle tax
• Property tax

The total financing potential of the ideas outlined would be 500 million euros per year. However, the ideas cannot be implemented without a corresponding legal basis.

There will be an exchange on the proposed instruments with political decision-makers at municipal, state and federal level in early 2023.