Production and technology
If the production quality of passenger transport services (in particular punctuality) suffers, this has an impact on service quality and can lead to the loss of customers. In rail freight transport, too, punctuality is a key factor for our customers when choosing a mode of transport.
Due to the condition of the infrastructure or as a result of unknown weaknesses in the condition of facilities, unplanned maintenance measures are possible (e.g. ad-hoc bridge repairs or replacement of defective concrete ties). This can lead to higher costs and restricted speed sections.
The availability, capacity and condition of the rail infrastructure are essential prerequisites for an efficient rail transport system. To ensure that rail remains in a state of readiness for the future in the long term, it is also necessary to digitalize and automate the infrastructure.
The intensity of use on the German rail network has increased significantly. The capacity of the rail infrastructure has not been expanded in line with growing demand. At the same time, the condition of the infrastructure has deteriorated. Construction is being carried out at a very high level to drive modernization. However, this construction work requires the sacrifice of additional capacity while the work is in progress. As capacity utilization increases, the effects of congestions and delays are increasing exponentially. The intensity of construction activity in the network has already increased noticeably and is expected to continue to increase. This can also have a significant impact on transport companies’ operational schedules and production quality, some of which cannot be mitigated. As a result of the implementation of the planned extensive corridor modernizations, there may be impacts on volumes and revenues beyond the extent included in planning. In addition, further expense risks may arise as part of the implementation process. Overall, a general risk is a loss of competitiveness. A key component in facing the competition is improvements in service quality. To this end, we are implementing various measures at business unit level. This also includes DB Cargo’s transformation program. Significant opportunities for performance improvement also result from digitalization:
- more efficient and customer-focused processes,
- improved and new digital services, and
- easier access with online portals and apps.
The range and quality of our services depend to a significant extent on the availability and reliability of the production resources used, intermediate services procured and the quality of our partners’ services. We therefore maintain an intense dialog with our suppliers and business partners on the subject of quality. This is of particular importance in the vehicle industry. Delays in the delivery of new vehicles can result in lost revenues and additional costs, such as those incurred by substitute transport or contractual penalty payments.
Ensuring the sufficient availability of our vehicle fleet is particularly critical. Significant restrictions serve to jeopardize scheduled services. In regional transport, there is the additional risk of contractual penalties if trains are canceled or punctuality is insufficient. We try to minimize this risk by taking preventative actions and also by minimizing the consequences in case of occurrence, such as by providing subsitute vehicles or by organizing substitute transport.
The technical production resources used in rail transport must comply with applicable standards and requirements, which are subject to change. This leads to the risk that we may only be permitted to use individual series or rail car types under certain conditions, such as limited speeds, shorter intervals between maintenance or reduced wheel set loads, or not at all. In addition, we cannot accept new vehicles that have defects or are unable to be registered. As a result of technical defects or conditions, vehicles may need to be refitted, which could lead to significant restrictions on availability or even temporary prohibition of use.
In regional transport, a risk can arise from the redundancy of vehicles following the expiry or re-tendering of a transport contract. As a countermeasure, alternative possible uses are investigated.
Increasing digitalization is leading to a growing dependence on information technology (IT) and operational technology (OT) that are available around the clock and secure. This gives rise to potential information security risks, including cyber risks such as disruptions to the availability of IT/OT systems, which can lead to serious business disruptions or unauthorized third-party access to customer data. We counter this with forward-looking information security management that ensures the necessary protection of information-based business processes.
Risk management for information security is a key tool in achieving this. The relevant information security risks are identified, analyzed, evaluated and reduced by way of appropriate measures. They are also documented and, if necessary, reported to the relevant authorities and monitored. Our information security management is based on international standards and is ISO 27001/27002 certified in various scopes at individual companies.
To minimize critical technical security vulnerabilities, a number of countermeasures (such as firewalls, encryption, appropriate network segmentation and the timely installation of software updates) are implemented. The IT applications and IT infrastructure used for critical business processes are designed to ensure high availability. Technical redundancies in the network and cloud infrastructure ensure the continuity of business processes in the event of an IT component failure. For the most important processes and IT applications, systematic and regular penetration tests and red-team stress tests are carried out in order to detect and eliminate weak points at an early stage.
Overall, these measures are intended to reduce, but cannot altogether eliminate, the risk of successful attacks, the resulting outages of IT/OT systems, the disruption of communications and the theft of confidential information.
Irregularities, such as customs offenses and theft, can occur in freight transport. We combat this, among other things, by involving qualified customs coordinators and using an immediate reporting system for tax assessment notices.