Despite revenue drop - Leipzig to invest in public transport

With a decline in passengers due to Covid-19 and the energy crisis, among other factors, the city will focus on increasing the quality of service

Yesterday, local authorities in Leipzig announced additional funding for the city’s public transport system, despite what city officials have described as a financial downturn. Nevertheless, authorities will continue to add funding to the system and adapt its redevelopment and expansion schedules to fit demand.

According to an official statement, revenues for the local public transport operator, the LVB, have fallen due to a drop in passengers during the pandemic, while the energy crisis has also strained public transport budgets, especially for electric transport like trams.

Additionally, the so-called Germany Ticket, a 49-euro monthly pass for public transport valid throughout Germany will put even more strain on finances. Nevertheless, local authorities have pledged 9 million euros of funding for this year and an additional 11.5 million for the next.

Better quality for public transport

With the funds, the LVB is supposed to increase quality and expand services relying heavily on Flexa – an on-demand service in far-flung urban districts with more remote transit connections. A similar service was launched in Hamburg recently, with the aim of reducing travel times in so-called last-mile trips – from large transit hubs to residential areas.

Furthermore, the average speed of public transport will be increased by 0.8 kilometres per hour by the year 2030, boosting quality, demand and revenue.  Another measure includes tramline 16, as authorities will increase the frequency of trams in off-peak hours to ensure better connections to St. George Clinic.

Passenger numbers and the 'Germany ticket'

The Germany ticket takes some pricing autonomy away from local transit providers but still allows them to forge their own offers. Local authorities explained that the 49-euro monthly pass for public transport would be a very good deal for residents but lead to a drop in revenue. Thus, they plan to increase the single ticket fare to compensate, although it is not yet clear by how much.

Moreover, data projections put total ridership numbers at around 180 million passengers by the year 2030, instead of the previous 220 million. This will force the city to adapt its long-term growth plans, including postponing some track restoration.