2018 Integrated Report – On track towards a better Railway

Development of business units

Business model

With about 4,200 customer sidings in Europe, DB Cargo provides its customers with access to one of the biggest rail networks in the world and is thus the number one in European rail freight transport. The dense, international network stretches along the huge European freight transport corridor. It provides rail transport throughout Europe in the segments block trains, single wagon and combined transport. Individual industry solutions within the industrial, intermodal and logistics sectors complete the range of services offered. Mainly self-owned traction units and freight cars are used to provide services. The key industries served are the iron, coal and steel (montan), chemicals, auto­­motive and construction materials, industrial goods and consumer goods, as well as intermodal transport. The customer structure is characterized by major customers. The premiere key performance indicator is volume sold measured in ton kilometers. The relevant capacity utilization figure is measured in tons per train. The cost structure is mainly influenced by volume produced in train kilometers. Major cost drivers are personnel, infrastructure and maintenance expenses.

The most important source of revenue is the transport of goods by rail. Key resources are customer relationships, a good level of logistical customer understanding, motivated and well-trained employees, along with the efficient use of rolling stock and a capacity-related high-quality infrastructure. The intra-Group infrastructure companies and service providers are important suppliers in this respect.