Implementing Strong Rail
We have set ourselves the goal of harmonizing the economic,social and environmentalfactors with our business goals. Sustainability is anchored in our guiding principles and an integral part of our DNA. In response to the rapidly changing environmental, social and political conditions as well as internal challenges, we have formulated a new structural aspiration – our inner ambition – which is the heart of our new Strong Rail strategy. With the Strong Rail strategy, we expressly acknowledge our social responsibility and define our concrete contribution to achieving the Federal Government’s central transport and climate policy objectives. With our new strategic focus, we are also concentrating more on the core business of the railway in Germany to address the internal challenges and growing expectations of all stakeholders, from customers to policy to the public in Germany, with regard to the particular responsibility of DB Group. In order to live up to this responsibility, we at DB Group measure everything we do on the value of its contribution to a strong rail system. This also includes our subsidiaries. Subsidiaries with strategic significance for Strong Rail (such as DB Schenker) will continue to be held as financial investments. Joint operational initiatives focus on achieving synergies within the integrated network. Subsidiaries without strategic relevance for the Strong Rail strategy will be put to the test.
We have set the course for a shift in the mode of transport with the Strong Rail strategy and started to create additional capacities, increase product quality and improve customer satisfaction. Our strategy is a framework which we also use to create the internal prerequisites for shifting traffic to the rails and ensure sustainable alignment with the Green Transformation of DB Group. In order to create the necessary conditions for the shift in the mode of transport, we have identified three strategic areas within the Strong Rail framework:
- More robust: We are committed to the comprehensive expansion of performance-critical capacities. With a long-term focus on growth and technological innovations, we are creating the necessary capacities in infrastructure, vehicles and personnel. Among other things, together with the political sphere, we are investing in the evolution and new construction of lines and hubs, additional terminals for freight transport and the purchase of new vehicles. The digitalization of rail operations, better capacity management and comprehensive measures in recruiting and qualification also create more capacity. More trains, more train-paths and more employees will enable us to transport more people and goods while offering a higher quality of service.
- More powerful: In order to be able to achieve a high performance level in the long term, we will also carry out structural changes. We will simplify the organization and consistently align it with the common goal of a strong rail system. In order to be closer to the customer and respond more quickly to employees, we rely on a strong regulatory and functional organization, the introduction of customer-oriented collaborative processes to improve cross-business cooperation and an engaging process philosophy with common standards and methods. With simple processes and clear responsibilities, we become faster and more disciplined in our implementation of strategies.
- More modern: We will increase the pace of innovation for our customers. By expanding our activities in the area of new mobility (for example ioki), we provide our customers with an integrated offer that almost extends the rail line right up to their doorstep and complements local public transport in a meaningful way. By using digital technologies, we will also facilitate the effortless switch between the different means of transport. The integration of new and innovative forms of mobility and the use of smart services and digital platforms create clear added value for our customers. In this way, we take into account the rising expectations and create an attractive offer for sustainable mobility and logistics in cities and rural areas.
We have identified five central topics for each of the three strategic areas, which we call building blocks. The key criterion for selecting the building blocks is their importance across business units for our goal of a strong rail system in Germany and therefore also for the Federal Government’s transport and climate policy goals. This has resulted in a total of 15 building blocks to help us to organize the shift in the mode of transport. They are supplemented by building blocks specific to each business unit.
However, the shift in the mode of transport to rail can only achieve its full potential if the railway also continues to strengthen and expand its climate-friendly operations. Making DB Group greener is therefore a central requirement for the effectiveness of the shift in the mode of transport. To live up to the importance of this topic, we have defined another overarching building block through which we aim to ensure the effectiveness of the shift in the mode of transport. Together, these 15+1 building blocks form the strategic framework of our business alignment.
