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Germany Investing 86 Billion Euros to Improve Its Railway Network

The 10 year plan is the "biggest railway modernization program" in the history of the country.

Germany and its main railway operator, Deutsche Bahn, signed an agreement on Tuesday to put 86 billion euros into a country-wide 10-year rail renovation project. 

The entire country's rail network, many sectors of which are in poor condition, will be upgraded.

The project aims to lower carbon dioxide emissions and curb delays and cancellations. 

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Improved train service and better carbon footprint

Germany's federal government will provide 62 billion euros, which will equate to an average spend of 8.6 billion euros per year used to renovate rails, stations, signaling control and power supply. 

The Deutsche Bahn, Germany's private, joint-stock company will contribute the remaining 24.2 billion euros to the project. 

In doing so, the government is looking to step up its measures to fight global warming by lowering its carbon dioxide emissions. It's already faced years of urges from its euro zone partners as well as the International Monetary Fund to join in the economy of the area in such a way. 

Minister of Transportation Andreas Scheuer stated that "We will replace outdated facilities, ensure accessibility, improve construction management and the condition of railway bridges."

The deal disclosed on Friday its plans for the renovation of 2,000 bridges. Furthermore, the project aims to double the number of train drivers and train passengers by 2030.

Even though Germany is known for running an efficient and punctual train service, its reputation has taken a knock in the past few years. Around one-fifth of its trains ran late in the first half of 2019. 

Some of its networks major routes date all the way back to the German Emperor, over 100 years ago. These are in urgent need of repair. 

Scheuer positively stated that "the 20s will be a golden era for the railway."

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