Deutsche Bahn (DB) reportedly has an internal restructuring plan to become profitable by 2027. The document, which is to be discussed at a railway supervisory board meeting on 18 September, foresees a rapid economic turnaround with a 2 billion euro profit in three years from now.
In the document, DB’s board chairman Richard Lutz promises figures that were already promised five years ago for 2024, writes German transport publication DVZ citing Süddeutsche Zeitung. Lutz points to the meagre German infrastructure as the culprit for missing those goals. Unexpectedly high personnel costs, at 34 billion euros as opposed to the predicted 28 billion, also threw a spanner in the works of DB, according to him.
RailFreight.com reached out to multiple contacts at DB and DB Cargo, but the company was not reachable to confirm the existence of the plan.
“Old wine in new bottles”
The big picture of the restructuring plan was reportedly confirmed to the German Press Agency. Deutsche Bahn wants to make a profit of 2 billion euros by 2027, says DVZ. Many consider this to be unrealistic, calling it “old wine in new bottles” and pointing to DB Cargo’s losses as an obstacle to profitability. The freight branch announced its own restructuring plans earlier this year.
Despite infrastructure and freight transportation being the major obstacles to success, the restructuring plan seems to look for a solution in passenger transportation more than anything. According to DVZ, Lutz promises to grow commuter connections, redesign regional networks, grow internationally, shorten train turnaround times and reduce reserve high-speed ICE trains. Another Deutsche Bahn representative reportedly stated that the document focuses on infrastructure, as well as the operational and economic situation at the company.