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One of the main tasks of the long-term expansion of the Lithuanian railway transport is to ensure, following the European Union legislation, the implementation of a reform of the Lithuanian railway transportation sector so that the competitiveness of the country's railways in the European transport services market is increased. To properly implement the aforementioned objective, it is crucial to understand and to carry out a careful analysis on the existing railway management models (the separated one, the integrated one following the principle of holding and a completely integrated one). Only once all the pros and cons of the railway management models have been analyzed, one can choose the most optimum option for Lithuanian railways. This article will look at the advantages and disadvantages of the integrated model on the basis of the German railways. The article analyses the review of the German railway management model, the structure of the railway system, the criticism of the Deutsche Bahn model is provided in it along with the advantages of the German model. [ABSTRACT FROM AUTHOR]