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Narrow-gauge railways in Harz are halted - Critical condition cited

Harz Narrow Gauge Railways faces a grave predicament, with over hundreds of millions of euros unaccounted for. The question remains: can this company be rescued from impending collapse?

Narrow-gauge railways in Harz are halted due to a serious predicament - "Emergency situation...
Narrow-gauge railways in Harz are halted due to a serious predicament - "Emergency situation prevails in Harz's narrow-gauge railways"

Narrow-gauge railways in Harz are halted - Critical condition cited

The Harzer Schmalspurbahnen (HSB), Germany's longest continuous narrow-gauge network, is currently in a severe crisis, with hundreds of millions of euros missing, according to recent analysis. The company, which operates approximately 140 kilometers of track in Thuringia and Saxony-Anhalt, is in need of urgent action and significant investment to overcome the financial crisis.

Supervisory Board Chairman Thomas Balcerowski has called for profound changes within the HSB. He believes that there will be a commitment to the HSB, as it generates significant revenue for the region through tourism. The mood among the workforce, however, is depressing after the results of the analysis were shared.

The problems faced by the HSB go back decades, with an agreement for a fixed annual amount for state support made upon its founding in the 1990s. This fixed amount has not been adjusted since, contributing to the investment deficit. Saxony-Anhalt has been injecting several million euros to balance the deficits in recent years.

Saxony-Anhalt's Minister of Infrastructure, Lydia Hüskens (FDP), has stated that a viable concept is needed for the HSB to continue receiving support. Further talks between the company and the states are scheduled for late September. The search results do not provide specific details on the exact financial obligations expected from the states of Thuringia and Saxony-Anhalt for the HSB to overcome the financial crisis.

The analysis of the company's prospects reveals significant investment deficits. Urgent action is needed regarding steam locomotives, passenger cars, and railcars. The consulting firm recommends the acquisition of new diesel-hybrid railcars. The steam locomotive operation is currently unsustainable, according to the analysis.

The Brocken route, popular among tourists, will require investments in the tracks, which could lead to certain sections being closed at times. The extension to Braunlage in Lower Saxony and the tourist attraction Pullman City in Hasselfelde are not yet definitively off the table.

The HSB must undergo profound changes, according to Supervisory Board Chairman Thomas Balcerowski. He believes that there will be a commitment to the HSB, as it generates significant revenue for the region through tourism. The company will need investments of 544.1 million euros by 2045, plus an additional 253.2 million euros in operating costs.

Last year, the HSB recorded a million-dollar deficit with around one million passengers. The extension to Braunlage in Lower Saxony and the tourist attraction Pullman City in Hasselfelde are not yet definitively off the table. The HSB operates the longest continuous narrow-gauge network in Germany, with approximately 140 kilometers in Thuringia and Saxony-Anhalt.

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