DB Cargo transformation

DB Cargo is implementing a comprehensive transformation to sustainably improve profitability. Sector responsibility and the simplification of production and administration form the core. This should create the conditions for making transport more robust, resilient and competitive:

• Customer-oriented sector responsibility: From January 1, 2025, a central prerequisite for the transformation of DB Cargo will be implemented: the joint production in place to date will be replaced by a customer-oriented structure in sectors responsible for results.
  • In the Combined Transport division, these are the two sectors of maritime and continental combined transport.
  • In the Rail Logistics division, the four sectors Automotive, Steel, Liquids&Bulk and Full Load Solutions (FLS) assume entrepreneurial responsibility, with the addition of single wagon transport. The sectors and single wagon transport are responsible for the commercial success, the economic result and the quality of their services for customers. Locomotives, freight wagons and personnel are or will be assigned to them (encapsulated production). At the same time, the services of the combined transport sectors will already be encapsulated at the beginning of 2025. The allocation of locomotives and personnel of the long-distance area for the sectors of the rail logistics provider will take place by mid-2025. The sectors will provide traction services with their own personnel and their own locomotives and freight wagons if this is economically profitable. Otherwise, the services will be outsourced to external TOCs. In addition, the sectors with existing and new customers have specifically simplified transport concepts at the end of 2024 to use the allocated production resources more efficiently and realize cost savings.
• Simple production: The second key element of the transformation has been active since the end of 2024. Since the schedule change in mid-December 2024, trains in continental and maritime combined transport have been running with multiple unit drivers using the “strong long-haul driving.” The new central employer/works council agreement renders this flexibilization possible and DB Cargo more competitive. Combined transport will contin­­ue to be produced by DB Cargo AG, including the new long-haul driving deployment model. Since October 1, 2024, it has been mandatory for all new multiple unit drivers and voluntary for existing employees and, among other things, provides for a strengthening of the employees’ own scheduling, operational breaks at self-deter-­
  min­­ed locations, virtual workplaces (starting work via mobile device, starting work at the train) and shifts with the start and end of a rotation at different locations. Standards for out-of-town rest reduce travel costs to a market level. This model is intended to promote the robustness of production through efficient locomotive and personnel deployment. Multiple unit drivers know the sector and the needs of the customers they drive for, and actively take responsibility for the quality and stability of trac­­tion performance. The deployment model “strong long-haul driving” is also planned for the rail logistics service provider’s sectors and will be implemented there successively, depending on the number of available volunteers or newly recruited employees.
• New concept for single wagon transport: The third ele­ment of the transformation has been implemented since the schedule change in mid-December 2024 with the first steps in the conversion of the single wagon network. The target structure is a supply-oriented single wagon network with higher efficiency and (partly) closed runs between marshaling yards. More standardized high-frequency shuttle transports are already being operated on a scheduled basis for long-distance travel, and capacity utilization is being increased by focusing on longer and more profitable lines and by greater bundling. The asset throughput is to be increased by reducing the number of sorting sidings. The higher transport frequencies should relieve the load on the facilities and shorten the changeover time of the wagons. This should lead to an increase in quality for customers. In addition, single wagon transport also provides the services of local personnel (in particular switchmen/-women and wagon inspectors) across all sectors.
• Readjustment of support for single wagon transport necessary: However, the success of single wagon transport depends to a large extent on the operating cost support for single wagon transport introduced in 2024. According to the funding notices from the Federal Railway Authority, DB Cargo will receive 60% of the total funding amount for 2024. However, based on data from the Federal Network Agency, DB Cargo has a market share of about 90% in single wagon transport. This incongruence between actual volume and funding levels shows a need for readjustment in the allocation of funds. The funding guideline provides for an evaluation to take place in the first quarter of 2025 so that congruence can be established for 2026 at the latest. Without a reorganization of the support for single wagon transport, DB Cargo will need to redimension and merge less frequented facilities on uneconomical lines and adjust service frequencies and times.
• Lean planning, management and administration: The fourth component of the transformation is the goal of sig­nificantly reducing the personnel requirements for planning and controlling transport in the regions and in the control tower as well as reducing the manual activities in administration by simplifying production and standard­izing and digitalizing all processes. In 2024, DB Cargo has made significant progress in this respect and is able to significantly reduce its need for personnel. To that end, reconciliations of interests have been agreed with the General Works Council and a social compensation plan, which will be accompanied by a volunteer program, has been agreed to mitigate the disadvantages for employees. Personnel adjustments are made in a highly socially responsible manner. In 2024 alone, more than 1,000 employees left DB Cargo, mainly age-related or because they took advantage of the Group-wide labor market.
• Transformation management: To ensure that all the necessary transformation measures are in place up to tar­­get accomplishment and appropriate sustainability assur­ance, a program-oriented transformation manage­ment has been set up, that is to manage the success of the measures during the next two years. It consists of a Project Manage­ment Office, which is to support the specialist departments in achieving their set goals and implementing the agreed measures, a team to ensure the success of the measures in the presentation of economic results and a change and communication team, which is to ensure the change process for the employees with change and internal communication measures as well as qualifications.