DB Cargo transformation

In order to become economically profitable by the end of 2026, DB Cargo implemented key steps in its transformation in 2025, including the introduction of a customer-oriented structure with entrepreneurial responsibility.

• Sector structure established: Since January 2025, DB Cargo has been working in a new, sector-oriented structure comprising units with individual profit responsibility. In this context, locomotives, wagons and operational employees were allocated to the Automotive, Steel, Liquids & Bulk and Full Load Solutions (FLS) sectors, to Single Wagon Transport as well as Maritime and Continental Combined Transport. In 2025, the corresponding planning and realization of transports was also transferred to the sectors. The aim is for transports to be planned, managed and continuously improved from a single source in an economical and quality-oriented manner. The self-contained production entities formed are intended to further strengthen the economic and production responsibility of the sectors.
• Target images for the Rail Logistics division defined: The commercial target images for the Rail Logistics division’s sectors (Automotive, Steel, Liquids & Bulk and FLS) have been finalized in 2025. They are intended to be system providers that offer innovative network products.

In addition, sales and production have been bundled under one roof in each sector since 2025. The aim is to make the sectors more agile and bring them closer to the customer.

• Offerings in the Automotive sector expanded: The core of the Automotive sector’s offering is Automotive RailNet – a Europe-wide network that connects the production sites of automobile manufacturers, suppliers and ports. The service is completed by full logistics solutions from rail transport, transshipment and storage through to vehicle services. The growth area is battery logistics with an annual transport volume of about 700,000 batteries and cell modules at present. They have a high weight and, as hazardous materials, are predestined for transport by rail. Over the next five years, the focus will be on growth with international vehicle manufacturers and the expansion of battery logistics.
• The Steel sector is a system partner for the steel industry in Europe and offers logistics solutions that go beyond traditional transport. This sector in particular is working intensively on innovations to support customers in their transformation. With specially developed equipment, such as for the transport of sponge iron or scrap, the steel sector aims to shape the steel logistics of the future.
• The Liquids & Bulk sector offers hazardous goods transport and bundles logistics expertise for the mineral oil, fertilizer, chemicals and building materials industries. The customers in this sector are facing major challenges and are relocating some of their production abroad. Imports via ports are therefore becoming increasingly important. The Liquids & Bulk sector is responding to this by focusing on the specialty chemicals sector, which requires smaller shipment sizes for chemical products and whose shipments enter Europe via ports. The sector is therefore planning a European chemicals network (Chem-Cargo) designed to organize time and quality-critical transports reliably and efficiently. Service offerings are also being expanded, such as plant logistics and consulting services for carbon capture logistics concepts for the transport of liquefied CO₂.
• In single wagon transport, DB Cargo endeavors to live up to its responsibility to its customers and continues to operate the network across the board. The new operating model will be implemented by 2027 with an adapted single wagon transport core network, a change in the portfolio of marshaling yards and a significant increase in productivity in operational management. Moving forward, DB Cargo will bundle the technically complex marshaling process at four large, central production hubs and thus distribute large quantities of goods much more effectively throughout Germany, where there will be about 20 marshaling yards and junction stations in the future. At the same time, DB Cargo is strengthening the European network, especially the important corridor connections to Southeastern Europe.
• Combined transport repositioned in a highly competitive market environment: In continental combined transport, unprofitable transports were removed from the portfolio at the start of 2025. In 2026, the focus will be on minimizing costs and increasing quality and proximity to the customer. Maritime combined transport also consolidated its position in a market environment characterized by high price pressure and intense competition from trucks. The realignment is having an effect, and feedback from customers is positive. The “strong long-haul driving” deployment model for traction unit drivers, which was introduced at the end of 2024, has increased flexibility and contributed significantly to the competitiveness of combined transport. DB Cargo also agreed the sale of a substantial minority interest in maritime combined transport with the European Commission as part of the EU state aid proceedings. Key prerequisites for investor participation, such as the encapsulation of production, the transfer of locomotives and freight wagons to Transfracht GmbH, the achievement of the planned improvement in profits and the establishment of technical investment capability for potential investors, were implemented in 2025 before the market approach was initiated in October 2025, which led to the first indicative offers in December 2025.
• Introduction of the integrated planning and control system: Since 2025, the integrated digital planning and control system (Integriertes digitales Planungs- und Steuerungssystem; IPS) has bundled all central resource plannings (for locomotives, employees, turnaround cycles and shifts) at DB Cargo. This was previously done using different IT systems. The IPS is intended to ensure a more efficient, flexible and transparent resource planning process by eliminating interfaces and duplicate activities, displaying resources in real time and providing a (partially) automated decision-making process.
• New depot concept: With the new sector structure, DB Cargo is also aligning the locations for the maintenance of locomotives and freight wagons with the main corridor of its transports. In 2025, DB Cargo established the conditions for pooling maintenance capacities and reducing the number of workshops. At the end of 2025, DB Cargo was carrying out maintenance on locomotives and wagons at 27 locations across Germany. These are to be reduced to 18 locations by the end of 2026. This will reduce the number of maintenance depots from 11 to seven and the number of branch offices from 16 to 11. The consolidation of maintenance capacities will increase capacity utilization at the remaining workshops, thus preventing material stockpiling and infrastructure expenses. The reduction in fixed costs and the more efficient provision of services will contribute directly to increasing the competitiveness of DB Cargo’s maintenance costs.
• Sale and leaseback of locomotives and freight wagons: DB Cargo has concluded a sale and leaseback agreement with the wagon lessor GATX Rail Europe for about 6,000 freight wagons. The complete package includes different wagon types. During the multi-year leaseback period with varying terms, DB Cargo continues to have unrestricted access to the wagons, remains the wagon keeper for the duration of the lease period and is responsible for maintenance and commissioning. After the implementation the share of rented wagons in the overall fleet will increase from about 11 % to about 20 %.

DB Cargo has also concluded a sale and leaseback agreement with the lessor Beacon Rail for 60 Class 77 diesel main line locomotives. Beacon Rail will also assume responsibility for maintenance as the wagon keeper with the aim of significantly increasing the availability of these locomotives.

The sale and leaseback of part of the rolling stock is a contribution to the transformation of DB Cargo and makes the provision of locomotives and wagons more flexible. The proceeds from the sale also help to improve DB Cargo’s financial situation.

• DB Cargo’s profitability needs to increase further: DB Cargo’s operating profit figures improved in 2025 but remained negative. In order to achieve the goal of profitability by the end of 2026, costs must be reduced further, among other things. At the same time, DB Cargo must remain reliable and efficient in order to achieve the desired trend reversal after years of declining volume sold. In 2025, positive non-recurring effects from sale and leaseback transactions served to bridge the gap until the operational measures implemented take effect.

DB Cargo developed a comprehensive restructuring concept for DB Cargo AG in conjunction with an external restructuring expert in 2025. The restructuring report (IDW S6) submitted by the expert in February 2026 is based on this concept. According to the restructuring expert’s statement contained therein, DB Cargo AG is in a position to operate profitably in the long term despite rising costs and changed market conditions thanks to the measures that have been initiated.