German Transport Ministry Terminates $2bn Vehicle Toll Contract With CTS Eventim Over EU Ruling

After the European Court Of Justice put a stop to the passenger vehicle toll Germany planned on introducing, the country’s Ministry of Transport and Digital Infrastructure has unilaterally terminated its contract with CTS Eventim.

Together with joint venture partner Kapsch TrafficCom AG, CTS Eventim was to collect the so-called infrastructure charge, which would have demanded a certain fee from drivers using German roads.

The contract awarded to both companies was worth almost €2 billion ($2.2 billion) over a minimum contract period of 12 to 15 years from the date the toll would have been introduced.

That’s not going to happen, however, after the European Court of Justice ruled that the toll was unlawful as it placed foreign drivers at a disadvantage.

German drivers were supposed to receive tax cuts to offset the charge.

CTS Eventim had been selected to collect the toll because of its vast e-commerce experience.

The company released a statement saying it has “taken note of the Federal Ministry of Transport and Digital Infrastructure’s unilateral termination of the contract (with effect from 30 September 2019) with the operating company to levy the infrastructure charge.

“Together with our joint venture partner Kapsch TrafficCom AG, we are now reviewing the reasons for the termination, and its implications. 

“The contracts concluded with the Federal Government contain protective provisions intended to prevent pecuniary damages for the operating company and its shareholders. This also applies in the event that the infrastructure charge is not introduced.”