ALLRAIL react to Danske Statsbaner (DSB)’s profit announcement
Posted: 1 March 2024 | Emily Budgen | No comments yet
ALLRAIL have released a statement responding to Danish operator Danske Statsbaner (DSB)’s recent profit announcement.


ALLRAIL has released this statement:
This month, Danish state-owned passenger rail operator Danske Statsbaner (‘DSB’) reported increased “profits” and ridership for the fiscal year 2023.
However, DSB’s “profits” are in fact a fake profit margin that is ‘earned’ from a countrywide Public Service Obligation (‘PSO’) contract that was directly awarded by the Danish government without the benefits of a competitive tender (which would have achieved a lower cost for taxpayers and higher quality for passengers).
Instead, there is a much better option: rail market opening in Denmark.
In essence, DSB’s profits do not come from being a competitive business; instead, they are baked into an exclusive deal negotiated with its owner, the government, and subsidised by the taxpayer – at an astonishing “3.25 billion Danish Kroner per year”.
But is there really a need for a huge subsidised PSO contract – for all of Denmark? On the contrary: there are multiple indications that many routes could already be commercially viable; for example:
- Demand is strong with up to “49% more travellers” on specific routes compared to 2019 – the last year before Covid – and the growing willingness by Danes to use rail travel
- There are independent operators who have applied to offer commercial services within Denmark – without any taxpayer subsidy
ALLRAIL’s Policy Officer Salim Benkirane says: “In reality, the only profit-earning that DSB knows is lobbying its owner for exclusive taxpayer funded contracts. Instead, it is an open market that would reduce ticket prices – without wasting billions of Danish Kroner in taxpayer money.
The Danish government should spend that money on other much more worthy things – such as improving the rail infrastructure – and not on one single rail operator.”
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