After two years of tough negotiations DB Chairman Hartmut Mehdorn and Bavarian Transport Minister Otto Wiesheu signed an agreement on September 12 covering regional rail services for a 10-year period. This will see the Land contract with DB Regio to provide local services at a total cost of €8bn.

The deal also covers infrastructure work, including improvements to the S-Bahn networks in München and Nürnberg, as well as upgrading of routes in the Allgäu and in northern Bavaria for tilting trains. The agreement is seen as a template for similar agreements with other Länder.