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Narrow-gauge railways in Harz require significant funds for renovation and modernization

The traditional Harzer Schmalspurbahnen narrow-gauge railway faces an existential threat as the company continues to accrue losses. Without significant financial investments, the railway may cease to exist.

Narrow-gauge railways in Harz require significant funds for restoration
Narrow-gauge railways in Harz require significant funds for restoration

Narrow-gauge railways in Harz require significant funds for renovation and modernization

The Harz Narrow Gauge Railways (HSB), known for operating the longest continuous narrow-gauge network in Germany, is currently facing significant financial challenges. The states of Saxony-Anhalt and Thuringia are engaged in discussions regarding the HSB's financial situation, with the need for a three-digit million euro investment for comprehensive renovation being a key point.

The increased costs for energy, personnel, and historical vehicles, as well as the losses reported in recent years, have led to the states providing financial support to the HSB. The state of Saxony-Anhalt, for instance, has promised more than eight million euros in support for the HSB for the years 2024 and 2025. Last year, the HSB reported losses of 5.6 million euros, and in 2023, the losses increased to 2.4 million euros.

The current financial losses and the requirement for a substantial investment have led the involved municipalities, as shareholders, to hold onto the track network. However, the federal states of Thuringia and Saxony-Anhalt are not willing to provide the necessary three-digit million euros for the preservation of the Harz narrow-gauge railway network due to the ongoing financial losses.

Both states demand a sustainable concept from the company to reduce ongoing costs. The financial support already provided, such as around 20 million euros by Saxony-Anhalt in 2024/2025, is substantial but not sufficient to cover the extensive renovation needs. The decision on further funding depends on the company’s presentation of a detailed economic and investment plan, which will define possible savings and the financing share between the states.

If there are no investments, individual tracks of the HSB may have to be closed down for safety reasons at some point. The total investment need is to be determined by the management by the end of September.

Despite the financial difficulties, the HSB remains an important part of the region's tourism industry. Approximately 1.14 million people traveled with HSB trains last year, most using the route to the Brocken. The HSB needs to be repositioned, with the steam locomotives being converted to light oil.

A staff meeting is planned at the HSB next Tuesday, and no threat of layoffs has been announced. The renovation of the HSB would take many years, but without multi-million investments, the existence of the HSB may be at risk. The calculations being made will serve as a basis for talks with the states of Thuringia and Saxony-Anhalt. The gauge of the HSB is one meter wide, making it a unique and charming part of Germany's transport history.

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