Italo orders 26 Siemens Velaro trains in €3bn deal to launch German high-speed rail service by mid-2028
Italian rail operator Italo Holding has signed a €3 billion contract with Siemens Mobility for 26 high-speed Velaro trains, with an option for 14 more, as it prepares to challenge Deutsche Bahn on Germany’s main long-distance corridors from mid-2028. The total investment package reaches €3.6 billion, including 2,500 new jobs.
The deal
Italo and Siemens Mobility signed the contract on Monday, cementing the Italian private operator’s entry into the German long-distance rail market. The firm order covers 26 Velaro high-speed trains, with an option to purchase an additional 14 units, alongside a 30-year maintenance agreement. Siemens valued the order at around €3 billion, making it one of the largest single contracts in the company’s rolling-stock business. The trains will be assembled at the Siemens plant in Krefeld and serviced at the Dortmund depot.
The conclusion of the contract is a decisive step to establish open competition in one of the largest high-speed rail markets in Europe.
Routes and service plans
Italo plans to begin operations by mid-2028 on two main corridors: Munich–Cologne–Dortmund and Munich–Berlin–Hamburg. The network will span approximately 1,300 kilometres, connecting 18 cities with a schedule of 50 daily trips. Each eight-car Velaro train will carry around 440–450 passengers and reach speeds of up to 320 km/h. The interior will offer three classes (Club Executive, Prima Business and Smart), a bistro, 5G connectivity and Starlink satellite internet. Italo’s red livery will introduce a visible alternative to Deutsche Bahn’s ICE fleet, which has dominated the sector for more than three decades.
- Federal Network Agency orders capacity cap for Deutsche Bahn
- Italo signs €3bn contract with Siemens for 26 Velaro trains
- Planned start of high-speed services on two German corridors
Regulatory shift
Italo’s move follows a landmark decision on 17 July by the Federal Network Agency, which ordered infrastructure manager DB InfraGO to cap any single operator’s share of capacity on congested routes at between 60 and 75 percent. Deutsche Bahn currently controls around 95 percent of the long-distance market. The ruling is designed to lower barriers for new entrants. Italo had lobbied the agency for better newcomer conditions, arguing that fairer allocation of train paths was essential before committing billions. Flixtrain is also expanding its services, but Italo’s investment is the most substantial challenge yet to the state-owned incumbent.
Investment and employment
The total €3.6 billion programme covers more than rolling stock. In addition to the train purchase, it includes the recruitment and training of around 2,500 staff, investments in stations, IT infrastructure and the Railigent X digital platform, which uses artificial intelligence to optimise maintenance and fleet availability. Two German-registered subsidiaries, Atrium and Mainsee, will handle operations and fleet ownership from their base in Frankfurt. Backers include the Swiss shipping group MSC, BlackRock-owned Global Infrastructure Partners and the insurer Allianz, signalling deep institutional confidence in the venture.
After the decision of the Federal Network Agency we are now taking the concrete steps for the start of operations in 2028.
Industry reactions
Unions, passenger groups and Deutsche Bahn have warned that adding another competitor to a network that is already overloaded in many sections could force reductions in both long-distance and regional services. The debate over track capacity is likely to intensify as the 2028 launch approaches. For now, Italo’s order locks in manufacturing slots and signals that the entry is no longer a hypothetical plan but an industrial project with fixed timelines.
