The privatization of the train system in Germany was a particularly insane disaster that is only now, 30 years later, being undone/repaired.
If you look at an org chart of the DB these days, the most fascinating part is that DB consists of almost 600 separate corporate entities that are all supposed to invoice each other.
Speaking with insiders, it appears that when the privatization happened, the new corporate structure took what was essentially every mid-size branch of the org chart and created a separate corporate entity, with cross-invoicing for what would normally normal intra-company cooperation. I think the (misguided) goal was to obtain some form of accountability inside a large organisation that had been state-funded and not good at internal accounting.
This fragmentation lead to insane inflexibility, as each of the 600 entities has a separate PnL and is loathe to do anything that doesn’t look good on their books.
Add to this a history of incompetent leadership (Mehdorn, who also ran AirBerlin into the ground, and who was also responsible for the disastrous BER airport build-out), repeated rounds of cost-cutting that prioritized “efficiency” over “resiliency of the network” etc. etc.
DB is currently undergoing a massive corporate restructuring to simplify the 600+ entity structure, but there has been a massive loss of expertise, underinvestment in infrastructure, poor IT (if you see a job ad for a Windows NT4 admin, it’s likely DB), etc. etc. — it’ll take a decade or more to dig the org out of the hole it is in.