BERLIN, Jan. 23 (Xinhua) -- Deutsche Bahn AG, German National Railway Company, has announced ambitious plans for the modernization of its rail network and further capacity growth on Monday night.

German National Rail director Richard Lutz told press in Berlin that he intended to increase capacity by "up to 20 percent".

As part of a wider "Digital Rail" program, his organization was working towards a fundamental transformation of the German railroad system.

Lutz excitedly described the "Digital Rail" initiative as offering the opportunity for an "unprecedented developmental leap" for the German railroad. Amongst others, a network of digital control and safety systems would enable denser train timetables and a better utilization of train lines.

However, Lutz noted that the full implementation of the project would take between 10 and 15 years and require significant public investment.

German has witnessed a surge in domestic traffic, particularly on roads in the past years. As a consequence, the country's transport sector has not recorded any reduction in CO2 emissions since 1990.

German Chancellor Angela Merkel has vowed to lower emissions significantly until 2030, granting more environmentally-friendly rail traffic a place of prominence on the government's agenda.

While Lutz lamented the National Railway Company's failure to meet is own goals for punctuality in 2017, he praised its economic performance during the past year.

"We have improved ourselves in this regard again and will reach our goals and partially even surpass them," Lutz said.

Deutsche Bahn has previously forecast an operating profit of at least 2.2 billion euros (2.7 billion U.S. dollars) in 2017. Final annual earnings figures are scheduled to be released in March.