Strong Rail strategy

Our inner ambition

Our inner ambition is to ensure that Germany has a strong rail system. Building a strong rail system will help our country to overcome existential challenges:

  • For the climate. 
  • For the people. 
  • For the economy. 
  • For Europe. 

Implementing Strong Rail

We have set ourselves the goal of harmonizing the economic, social and environmental factors with our business goals. Sustainability is anchored in our guiding principles and is an integral part of our DNA.

With the Strong Rail strategy, we have set the course for a shift in the mode of transport and are expecting to create additional capacity, increase product quality and improve customer satisfaction. In order to create the necessary systematic and organizational 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 extensive 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 Federal Government, we are investing billions in the expansion and construction of lines and hubs, additional terminals for freight transport and the purchase of new vehicles. We achieve more capacity through the digitalization of rail operations, better capacity management and extensive and sustainable measures in recruiting and qualification. 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 and sustainable performance level in the long term, we will also carry out structural changes. We are simplifying the organization and aligning it systematically with the common goal of Strong Rail. In order to be more customer-­centric and respond more quickly to employees, we rely on a strong regular and functional organization, the introduction of customer-oriented collaborative processes to improve cross-business unit 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. With our activities at DB Regional in DB Regional Road and at DB Connect, we offer our customers an integrated service that extends the rail virtually to their front door and makes a meaningful addition to local public transport. By using digital technologies, we will also facilitate an 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 rising customer expectations and create an attractive offer for sustainable mobility and logistics, both in cities and rural areas.
The building blocks of the Strong Rail strategy
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For each of these three strategic areas, we have identified five central issues, 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 guide the shift in the mode of transport.

However, the shift in the mode of transport to rail can only achieve its full potential if the railway also continues to expand its climate-friendly operations and other environmentally friendly advantages. DB Group’s green transformation is therefore a central requirement for the effectiveness of the shift in the mode of transport. To embody 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 direction. Some building blocks will be newly set up or have their content adjusted in 2024.

Strong Rail targets

Concrete measures are the basis of every building block of the Strong Rail strategy. A “construction manager” was named for the operational management of each building block, who is accountable to the Management Board for designing the measures and their operational implementation. The building blocks were incorporated in DB Group’s mid-term plan. We monitor contributions to targets with key performance indicators on a continuous basis.

Top targets of the Strong Rail strategy
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Outlook: Top Targets Strong Rail

Anticipated development

2023

2024

Volume sold in long-distance transport 1) (billion pkm)

45.5

~ 47

Passengers regional transport (rail) (billion)

1.7

~ 1.9

Train kilometers on track infrastructure (Germany)

(billion train-path km)

1.12

~ 1.15

Condition grade high-performance network 1) (grade)

3.1

2.8

Customer satisfaction DB Long-Distance 2) (grade)

2.7

2.6

Customer satisfaction DB Regional (rail) 2) (grade)

2.2

2.2

Customer satisfaction DB Cargo 2) (grade)

2.8

3.0

Punctuality (operational) DB Long-Distance (%)

64.0

~ 70

Punctuality (whole journey) DB Long-Distance 1) (%)

68.9

~ 74

Punctuality DB Regional (rail) (%)

91.0

~ 93

Punctuality DB Cargo (Germany) (%)

70.5

~ 69

Absolute greenhouse gas emissions Scope 1 and 2 (Integrated Rail System) 1), 3), 4) (million t)

3.3

~ 3.2

Share of renewable energies in the DB traction current mix in Germany 5) (%)

68

~ 69

Employee satisfaction (SI)

–

3.7

Women in leadership 1) (%)

29.4

~ 30

ROCE (%)

–2.0

~ 2

Debt coverage (%)

5.2

>11

1) Newly included in 2024 as a Strong Rail target.
2) Figure converted to grade in 2023.
3) Not including non-material small Group companies and subsidiaries in the Integrated Rail System.
4) 2023 value audited with limited assurance.

  • Performance development:
    • DB Long-Distance: We expect a slight increase in volume sold. Strike actions have a dampening effect.
    • DB Regional: Noticeably positive development in the number of passengers is expected, due in part to the first full year of the effect of the Germany-Ticket.
    • DB InfraGO: Overall, the train kilometers on track infra­structure should develop slightly positively.

  • Performance development in rail passenger transport should continue to recover in 2024.

  • Customer satisfaction:
    • DB Long-Distance: We expect customer satisfaction to improve slightly at DB Long-Distance in 2024. The persistently challenging operating quality and the intensive construction work have a dampening effect.
    • DB Regional (rail): Challenging conditions are also expected for the development of customer satisfaction at DB Regional in 2024. With the start of the general modernizations, additional train cancellations
      and replacement services are to be expected, which will have a negative impact on customer satisfaction. In view of the parallel improvements in product quality, for example, due to new vehicles, expansion of services, new replacement service concepts and further developed passenger information systems, a stable development of customer satisfaction is nevertheless expected.
    • DB Cargo: Due to the unchanged situation with regard to construction activity in the network and due to operational restrictions, a further slight decline in customer satisfaction is expected.
  • Punctuality:
    • For 2024, the aim is to achieve a noticeable improvement in punctuality. However, achieving punctuality targets remains very challenging due to the continued planned increase in volume of transport and the continuing infrastructure restrictions.
  • Climate protection:
    • Our absolute greenhouse gas emissions in Scope 1 and 2 (Integrated Rail System) are set to decline slightly, due in particular to the further implementation of reduction measures, such as the further greening of traction current.
    • In order to reduce the level of greenhouse gas in the DB traction current mix in Germany, we intend to further increase the share of renewable energies. A slight increase is expected.
  • Social:
    • The next employee survey will take place in 2024. Among other things, we expect a slight decline in employee satisfaction due to the persistently tense operating situation.
    • We intend to further increase the proportion of women in leadership by further implementing the measures introduced.
  • Profitability:
    • Due to the expected significant improvement in adjusted EBIT, ROCE is expected to improve noticeably again despite a further increase in capital employed.
    • Debt coverage is also expected to increase noticeably again as a result of the expected significant improvement in operating profit.