Deutsche Bahn plans to increase network fees it charges the states for regional trains by 2.4 pct a year until 2011, the report said.

Previously, Deutsche Bahn had increased the fees by 2 pct a year.

The additional fees the states will have to pay total about 882 mln eur until 2011, according to the report.

The increases are seen as part of the preparations for the partial rail privatisation planned for the second half of 2008, which is subject to approval by states.

See also:

Russian state railway may seek to participate in Deutsche Bahn privatisation

AFX News Limited: 07.25.07

MOSCOW - OAO RZD may seek to acquire a stake in Germany's Deutsche Bahn AG during the course of its planned privatisation, a spokesman for the Russian railway told Vedomosti.

'If a deal will be beneficial to our company and if the government approves of it, then RZD will gladly participate,' the spokesman said.

The German cabinet yesterday approved a draft law that paves the way for a partial privatisation of state-owned railway next year.

The bill, drafted by Transport Minister Wolfgang Tiefensee, will give Deutsche Bahn and potential stakeholders the right to operate the network for profit.

However the assets themselves, including track network and stations, will remain in government hands for the next 15 years.

Tiefensee said he aims to see an initial tranche, probably of between 20-25 pct, sold off by the end of 2008. Proceeds are to be split between the government and Deutsche Bahn.