Billion dollar order for Berlin's S-Bahn: Who will be the winner?

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Berlin awards a billion-dollar contract for S-Bahn operations and new trains, with legal disputes in the background.

Berlin vergibt einen Milliardenauftrag für den S-Bahn-Betrieb und neue Züge, mit juristischen Auseinandersetzungen im Hintergrund.
Berlin awards a billion-dollar contract for S-Bahn operations and new trains, with legal disputes in the background.

Billion dollar order for Berlin's S-Bahn: Who will be the winner?

Today, on August 29, 2025, the Deutsche Bahn consortium received a significant contract in a multi-billion dollar procurement process for the operation and equipment of large parts of the Berlin S-Bahn network. In collaboration with the companies Siemens and Stadler Rail, Deutsche Bahn will procure at least 1,400 new S-Bahn cars and take over their maintenance over a period of 30 years. This decision is welcomed by the states of Berlin and Brandenburg, which want to continue to have S-Bahn traffic on the important light rail and north-south routes carried out by Deutsche Bahn. rbb24 reports that Alstom, a losing provider, is already considering taking legal action against this decision.

The award, which was approved by political decision-makers in the main committee of the House of Representatives on July 2, 2025, has a total value of 15 billion euros. The contracts stipulate that the operation of the S-Bahn lines will last for 15 years, while the maintenance and operation of the new trains will last for 30 years. Normally, Alstom has until September 11, 2025 to lodge an appeal against the decision with the Public Procurement Chamber of the State of Berlin. Last year, Alstom unsuccessfully sued the award conditions before the Court of Appeal. Development city adds that the trains will in future be the property of the State of Berlin.

Future challenges and delays

The new operating company is scheduled to take over the S-Bahn on the light rail lines and the north-south route from 2031. However, this schedule could be significantly affected by legal disputes between Alstom and the responsible authorities. VBB points out that possible lawsuits by Alstom could potentially delay the award for years. In this context, a court has already expressed doubts about the legality of the entire procurement process on several points.

The tender is considered particularly complex because Deutsche Bahn acts as a full-service provider during the award process, while Alstom only aims to deliver and maintain new vehicles. Alstom criticizes the procedure as a distortion of competition and sees itself disadvantaged by the political decision for the S-Bahn. However, the start of operations is planned for 2031, while the first new trains could not be put into operation until the 1930s.

In addition, an investigation into the service life of older wagons is currently being carried out in order to optimize existing capacities. The award has significant effects on the future of Berlin's S-Bahn transport and the quality of local public transport in the capital. Political decision-makers in the black-red coalition decided early on on a uniform solution for S-Bahn operations in order to design the framework for future traffic in the metropolis.

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