HOCHBAHN Annual Report 2015

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The investment grants from the federal budget of the Free and Hanseatic City of Hamburg
(FHH) earmarked for maintaining the operative infrastructure of the U-Bahn have been
subject to large variations in recent years. In the coming years the level of the subsidies
will mainly be determined by the ongoing programme to convert U-Bahn stations for
barrier-free access, but also by funding for the further expansion of the U-Bahn network.
If the subsidies from the FHH were to be further reduced for this and other reasons, necessary
measures would have to be financed in full by the HOCHBAHN. In the medium
and long term this would lead to an increase in the costs of capital.
Insufficient increase in HVV ticket prices to cover the actual cost increases
The responsibility for fixing the ticket pricing structure in the area covered by the Association
lies with the regional authority for public transport. The annual increases of the HVV
ticket prices up to 2010 constituted a significant risk for the HOCHBAHN since there was a
risk that they were not raised far enough to fully compensate the actual increases in internal
costs. Following an agreement between the transport operators and the regional transport
authority, the annual HVV price rises since 2011 have been coupled with the actual increase
in expenditure. An insufficient rise in the HVV price tariff would lead to an increase in the
HOCHBAHN’s deficit.
Valuation of the investment in BeNEX
The HOCHBAHN has bundled its regional passenger rail transport activities in Germany
outside Hamburg in its subsidiary BeNEX GmbH. Insufficiently high dividend payments
to the HOCHBAHN or a year without a dividend could lead to value adjustments having
to be made on this investment. The value of the participation is regularly re-assessed
during the drawing up of the annual financial statements at the HOCHBAHN. According
to the current assessment, in particular the agilis companies will in all probability fail to
post sufficient returns on the transport services contracted to them over the contract
term. Alongside the continuing low fuel prices, which encourage people to use their
private cars, this is due to falling passenger numbers as a result of the increasing popularity
of intercity coach services. Differing views among the shareholders with regard
to the financial responsibilities at agilis E are currently the subject of a judicial review to
verify the facts of the case. The HOCHBAHN is proceeding on the assumption that the
court will allocate the financial consequences as well as the already assumed operative
responsibility to BeNEX. For this reason it is to be expected that investment income from
BeNEX in the medium term will be reduced or may even be entirely absent.
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The danger of tendering procedures for public transport by bus in Hamburg
The basis for the provision of bus services by the HOCHBAHN is the official entrustment
issued to us, which runs up to 2019. Proof is required every year that there is no overcompensation
for our public service costs and that the services were provided at prices
which comply with the arm’s-length principle. The expiry or abolition of the entrustment
would pose the risk that bus services could be put out to tender by the regional transport
authority. The preconditions for a direct award of the services are currently being