DB Cargo

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DB Cargo AG

logo
legal form Corporation
founding 2009 (as Railion)
Seat Mainz , GermanyGermanyGermany 
management Sigrid Evelyn Nikutta ( CEO )
Number of employees 29,525
sales 4,449 million euros (2019)
Branch Transport , logistics
Website dbcargo.com
Status: 2019

DB Cargo headquarters in Mainz (2020)
DB Cargo locomotive near the Gremberg marshalling yard (2015)

DB Cargo (formerly Railion and DB Schenker Rail called) is an international transport and logistics company with registered office in Mainz and another administrative headquarters in Frankfurt am Main . Its establishment goes back to the second stage of the rail reform in the 1990s. Today DB Cargo brings together all national and international activities of Deutsche Bahn in rail freight . The company's services include both block train and single wagon transport , from which numerous competitors have withdrawn. In terms of the number of kilometers driven, DB Cargo is the leader in Germany and Europe, although transport performance has been declining for years. 2020 took Sigrid Nikutta the CEO .

history

Beginnings in the rail reform

At the end of the 1990s, the operational business of Deutsche Bahn was relocated to five legally independent stock corporations . This measure was part of the second stage of the rail reform. Against this background, a forerunner company was set up in 1997, which was supposed to facilitate the conversion of the publicly organized rail freight transport into a privately run company, before finally establishing DB Cargo AG on January 1, 1999. Their headquarters were set up in Mainz.

European expansion

DB Cargo was initially focused purely on German activities. The group wanted to invest billions in its subsidiary to improve its position in the transport and logistics market. As competition with other European providers became increasingly fierce, Deutsche Bahn (DB) and the Dutch State Railways ( Nederlandse Spoorwegen , NS) announced in 1998 that they would merge their rail freight transports.

DB Cargo and NS Cargo together achieved a turnover of around 6.9 billion German marks and had 50,000 employees. It was the first cross-border rail merger in which Deutsche Bahn still held a majority of 94%. A financial holding company was set up for the new company and began operations on January 1, 2000 under the name Railion.

internationalization

historical Railion logo with addition for DB Logistics
Locomotives (still with Railion logo) in Singen (Hohentwiel) (2007)

Railion laid the foundation stone for the establishment of a leading European transport and logistics company that was open to other partners from the start. While the European Commission and the European Parliament wanted to encourage competition between the providers, they opted for cooperation. In 2001, the Danish State Railways ( Danske Statsbaner , DSB) brought their rail freight transport into the joint venture as a third partner and received around 2% in Railion, which reduced Deutsche Bahn's share to 92%.

The cooperation between DB, NS and DSB was an essential part of Deutsche Bahn's long-term strategy for expansion in other European countries. This extended not only to state railways, but also to the acquisition of private competitors, for example in Italy (2004), Switzerland (2007) and Poland (2009). There were also numerous smaller acquisitions, for example the transport and logistics activities of the RAG Group . In those places where a takeover was not possible, as in Sweden, the focus was on cooperation. At the end of the 2000s, Railion was not only able to offer connections from north to south, but also reliably serve the axis from west to east.

Regardless of this, the tough competition put a strain on the company's economic development. Deutsche Bahn responded with an austerity course, which noticeably improved the situation at Railion. In 2010, the crisis in rail freight transport was initially considered largely resolved.

Linking rail and road

In 2003, Deutsche Bahn transferred its stake in Railion to Stinnes (later DB Mobility Logistics ). After the takeover of the previously listed logistics company Stinnes, including the shipping company Schenker, the responsibilities in the DB Group were reorganized. As a result, DB Cargo, NS Cargo and other Railion companies developed into pure hauliers, while Stinnes and Schenker took on central tasks in rail freight transport such as sales. By bundling all transport and logistics businesses, Deutsche Bahn also wanted to grow in freight transport. The external appearance was adapted accordingly, so that DB Cargo henceforth operated as Railion Deutschland.

The group generally strived for better coverage of the entire transport chain across all modes of transport and traffic routes. In the following years, however, this mainly led to a shift in freight traffic from rail to road. This created the need to better link transport by rail and road, not least through further acquisitions. In 2009, Deutsche Bahn gave up the Railion brand and brought all of its rail freight traffic together under the name DB Schenker Rail. Initially nothing changed in the organizational structure. There was speculation in the media about an IPO of the newly formed DB Schenker division .

Restructuring of the company

DB Schenker Rail's business collapsed significantly in the 2010s. A major reason for this was the economic slowdown after the global economic and financial crisis . The company initially responded with a more flexible price structure. The combination of entire trains for major customers with bookings of individual wagons should lead to a fixed timetable that would increase capacity utilization. There was also talk of closing freight yards to reduce fixed costs , as well as cutting jobs.

The measures met with harsh criticism from the trade unions. They called for an immediate halt to the austerity program. Sometimes there was even talk of mismanagement. After several months of negotiations, the DB Group and the works council finally agreed in 2017 on a restructuring program for DB Cargo that dispensed with blanket job cuts. Instead, a gradual reduction in jobs was planned over a period of several years. Overall, freight traffic should grow.

The company's concentration on its core business in rail freight transport led to another change of name to DB Cargo AG in 2016. Since then, the most important national and international subsidiaries have borne this name again. DB Cargo and DB Schenker are now sister companies with equal rights within the rail system network.

More recent developments

The media reported that in the 2000s and 2010s, DB Cargo's fleet almost halved. The remaining locomotives were increasingly replaced by multi-system models that can also be used for international operations. The wagons were equipped with whisper brakes in order to halve the rolling noise of freight trains . In addition, the latest telematics and sensors were used , which also improved competitiveness. In order to drive developments in this area forward, DB Cargo played a leading role in the research project “Innovative Freight Cars” of the Federal Ministry of Transport and Digital Infrastructure (2016–2019). In general, DB Cargo wagons have become older in recent years, but also increasingly larger, so that they can hold more goods.

Since a large part of the freight is still transported by road, DB Cargo recently received more attention because rail freight transport is crucial for achieving the climate targets. Against this background, the German Federal Government is aiming, based on the assessment of experts, to relocate millions of truck trips, which had barely made progress in recent years. Last but not least, the productivity of the train drivers should be gradually optimized for this purpose. The current changes at DB Cargo are part of the strategy presented in 2019 to strengthen Deutsche Bahn as a whole.

During the global outbreak of the novel respiratory disease COVID-19 , which made cross-border logistics more difficult due to restrictions in the movement of people and goods, the company was able to successfully secure its transports. DB Cargo created additional capacities to supply the population, in particular with food and hygiene products. Large special transports such as the “Pasta Express” from Italy were discussed in the public eye.

organization structure

Business purpose

DB Cargo AG, a stock corporation under German law , acts as the company's parent company . Their subject matter extends to rail and road transport services for the transport of goods of all kinds as well as the procurement and operation of stationary and mobile means of transport such as locomotives , railcars , wagons and other containers. Related services are also provided for in the statutes. The company is entitled to all activities that appear directly or indirectly to serve the stated business purpose . This includes the establishment and management as well as the acquisition of third companies.

owner

The share capital of DB Cargo AG amounts to 256,007,000,000 euros, divided into 51,201,400 no-par value bearer shares . The German Bahn AG took over transfer of assets and liabilities of its former business unit load transport by way of spin by new formation all the shares of the company, that is sole shareholder of DB Cargo AG. There is a control and profit transfer agreement between the parent company and the subsidiary. DB Cargo AG is consolidated in the consolidated financial statements of Deutsche Bahn. In turn, Deutsche Bahn AG is 100% owned by the Federal Republic of Germany .

management

Board

Sigrid Evelyn Nikutta , CEO of DB Cargo

The management board of DB Cargo AG consists of at least two people, one of whom is responsible for personnel and social matters of the employees (labor director). In addition, the Supervisory Board determines the number of members of the Management Board and its composition. The committee currently consists of Sigrid Evelyn Nikutta (Chairwoman of the Management Board), Ursula Biernert (Human Resources), Thorsten Dieter (Offer Management), Ralf Günter Kloß (Production), Martina Niemann (Finance and Controlling) and Pierre Timmermans (Sales). The proportion of women is above the average in other German companies.

Supervisory board

The DB Cargo AG supervisory board consists of 20 people. It is made up of equal numbers of representatives of the shareholders and the employees, who are elected in accordance with the provisions of the Stock Corporation Act and the Codetermination Act . There are currently 6 women and 14 men on the committee. Richard Lutz , CEO of Deutsche Bahn since 2017, holds the chair . He is represented by Martin Burkert , member of the board of the Railway and Transport Union (EVG). With Claus Weselsky , federal chairman of the union of German locomotive drivers (GDL), the two leading German unions are represented on the supervisory board.

Societies

DB Cargo divides its business into three regions for Germany and Central Europe as well as Western and Eastern Europe . The German DB Cargo AG assumes both operational services for rail freight transport in Germany and central functions such as production, sales, finance and personnel for the entire DB Cargo group.

In 2010, Deutsche Bahn and its subsidiary DB Schenker Rail (now DB Cargo) and other railways participated in the European Xrail Alliance. Their goal was and is to this day to make single-wagon transport, i.e. freight trains with wagons from different customers, competitive with trucks. In addition, Xrail should ensure more customer-friendliness, efficiency and punctuality in cross-border traffic, for example through the joint booking system Xrail Capacity Booking (XCB).

Rail freight transport

Tank car train from DB Cargo near Treuchtlingen (2014)
Train the Euro Cargo Rail in Constantí (2014)
Vectron of DB Cargo Polska in Bydgoszcz Główna (2016)

Within the DB Group, DB Cargo is essentially assigned to the following subsidiaries and sister companies that are directly involved in rail freight transport:

  • DB Cargo Belgium, Antwerp, Belgium
  • DB Cargo Bulgaria, Pirdop, Bulgaria
  • DB Cargo Czechia, Ostrava, Czech Republic
  • DB Cargo Danmark , Taastrup, Denmark (formerly DSB Cargo)
  • DB Cargo Eurasia GmbH, Berlin, Germany (formerly Trans-Eurasia Logistics)
  • DB Cargo Hungária, Győr, Hungary
  • DB Cargo Italia, Novate Milanese, Italy (formerly SFM Strade Ferrate del Mediterraneo)
  • DB Cargo Nederland, Utrecht, Netherlands (formerly NS Cargo)
  • DB Cargo Polska , Zabrze, Poland (formerly PCC Rail)
  • DB Cargo Romania , Timisoara, Romania
  • DB Cargo Russija, Moscow, Russia
  • DB Cargo Switzerland , Basel, Switzerland (formerly BRS Brunner Railway Services)
  • DB Cargo UK , Doncaster, United Kingdom
  • Euro Cargo Rail , Paris, France
  • Transfesa (Transportes Ferroviarios Especiales), Madrid, Spain

Service company

There are also other companies that take on special tasks, for example in sales, the transport of dangerous goods and the combination of traffic flows:

  • DB Cargo BTT
  • DB Cargo Logistics
  • DB Intermodal Services
  • TFG Transfracht
  • Transa forwarding agency

Services

Service catalog

DB Cargo's catalog of services includes a wide variety of basic, additional and special services. The core products include in particular block train and single wagon transport , the combination of rail and road and CO 2 -free transport, for example for Audi. The latter are playing an increasingly important role, as the railways currently have the lowest CO 2 emissions compared to other modes of transport and at the same time have shown the greatest savings in recent years (1995–2015).

In addition, the company offers various industry solutions for the chemical industry as well as the timber and building materials trade. DB Cargo is also active on an international level. This applies in particular to traffic between Europe and Asia, where the company has a large network. The range of services also includes related services such as the rental and sale of locomotives and wagons.

Key figures

In the 2018 financial year, DB Cargo transported more than 255 million tons of goods with 2,686 locomotives and 82,895 freight wagons. Leased or rented material is included here. The company served around 4,200 sidings for customers in Germany, Denmark, Italy, the Netherlands and Switzerland. The route network operated in Germany was 33,000 kilometers long, on which DB Cargo achieved an average punctuality of 72.9% according to calculations by the Federal Office for Goods Transport.

criticism

The company is making losses. Critics accuse Deutsche Bahn of neglecting the necessary maintenance and modernization of the infrastructure of DB Cargo. This can be seen in the comparatively high average age of locomotives and wagons. In 2019, the Federal Ministry of Transport responded to the Federal Audit Office's criticism of a lack of investment with the argument that DB Cargo and other divisions had not currently fully exploited their potential.

When looking at the economic development of DB Cargo, single wagon traffic plays a special role. Experts are calling for the business to be subsidized or shrunk in order to compete with truck transports.

Web links

Individual evidence

  1. a b c Integrated Report 2019. (PDF) Germany needs a strong track. Deutsche Bahn, pp. 188/189 , accessed on April 15, 2020 .
  2. Ralf Heidenreich: DB Cargo wants to stop the slide and grow again in 2020. In: Wiesbaden Courier. July 27, 2018, accessed January 13, 2020 .
  3. a b Maike Hessedenz: DB Cargo reunited in Mainz . In: Allgemeine Zeitung . March 20, 2020, p. 9 .
  4. Intramodal competition in rail freight transport. In: Research Information System. March 13, 2019, accessed January 14, 2020 .
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  6. ^ Timon Heinrici: DB's strongest competitors in freight transport. In: Deutsche Verkehrs-Zeitung (DVZ). October 15, 2019, accessed January 10, 2020 .
  7. Sigrid Nikutta: BVG boss responsible for freight transport for Deutsche Bahn from January. In: Zeit Online. November 8, 2019, accessed January 8, 2020 .
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  10. Second stage of the rail reform . In: Eisenbahn-Revue International . No. 1/2 , 1998, ISSN  1421-2811 , pp. 2 .
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  12. Railway reform continues. First a GmbH for freight transport. In: Handelsblatt . December 4, 1996, p. 17 .
  13. Freight transport: reorganization relies on personal responsibility. DB Cargo is getting fit for independence. In: Handelsblatt . April 22, 1996, p. 15 .
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  16. Deutsche Bahn wants to invest billions in freight transport . In: Handelsblatt . October 31, 1996, p. 23 .
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  19. ↑ The rail-cargo merger with the Dutch is perfect. In: Frankfurter Neue Presse . June 24, 1998, p. 2 .
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  44. Rail subsidiary is renamed: DB Cargo becomes Railion Germany. In: Handelsblatt . September 11, 2003.
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  46. Eberhard Krummheuer: Inside Railion: Full steam ahead to Europe. In: Handelsblatt . August 17, 2007, p. 12 .
  47. Eberhard Krumm Heuer: German railway takes more rail freight. Group joins northern Italian Nord-Cargo - transports by rail and road are to be linked more. In: Handelsblatt . September 17, 2008, p. 18 .
  48. Freight transport: Deutsche Bahn gives up the Railion brand. In: Handelsblatt. December 7, 2007, accessed January 8, 2020 .
  49. Ulf Brychcy: Railway attracts investors with logistics. In: Financial Times Germany . May 26, 2008, p. 6 .
  50. Birger Nicolai: Rail freight traffic collapses by a quarter. Logistics board member Rausch expects a loss at DB Schenker Rail. New orders abroad. In: The world . January 4, 2010, p. 13 .
  51. Nikolaus Doll: Bahn is planning a saver price ticket in freight transport. In: The world . March 23, 2016, p. 10 .
  52. ^ Christian Schlesiger: DB Schenker Rail: Hard times for the railways. In: Wirtschaftswoche . April 29, 2013, p. 8 .
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  54. Redevelopment: Deutsche Bahn cuts 2100 jobs in freight traffic. In: Der Spiegel. March 23, 2016, accessed January 8, 2020 .
  55. Dieter Fockenbrock: DB Cargo: Railway workers mobilize politics. In: Handelsblatt. June 7, 2016, accessed January 8, 2020 .
  56. ^ Criticism of the management of the freight railway. Dispute over the conversion at DB Cargo subsidiary. In: Der Tagesspiegel . July 8, 2017, p. 10 .
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  60. Nikolaus Doll: Railway releases the brake in freight traffic. In: The world . February 14, 2007, p. 9 .
  61. DB Schenker Rail is now called DB Cargo. In: Verkehrsrundschau. March 2, 2016, accessed January 8, 2020 .
  62. Stefan Paravicini: DB Cargo is not getting going. In: Börsen-Zeitung . December 24, 2019, p. 8 .
  63. DB Cargo and Siemens Mobility sign a framework agreement. In: Bahn Manager. January 18, 2019, accessed January 10, 2020 .
  64. Peter Thomas: Against the noise of freight trains: With whisper brake and soundproof wall. In: Frankfurter Allgemeine Zeitung. April 28, 2019, accessed January 8, 2020 .
  65. Whisper Brake. Allianz Pro Schiene, accessed on May 11, 2020 .
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  67. Digitization makes DB Cargo more competitive. In: Deutsche Verkehrs-Zeitung (DVZ). September 1, 2019, accessed January 10, 2020 .
  68. Research project "Innovative Freight Cars". Federal Ministry of Transport and Digital Infrastructure (BMVI), accessed on April 15, 2020 .
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Coordinates: 49 ° 59 ′ 40.9 ″  N , 8 ° 16 ′ 51.3 ″  E