The sale of DB Schenker has made headlines, and the two-year long sale saga has now come to an end. However, disagreements on the aftermath of the takeover by DSV still remain. For example, there are differing views on how the billions of euros acquired by Deutsche Bahn (DB) should be spent. German trade union EVG and rail freight association Die Güterbahnen take opposing positions on the matter.
The initial reason for the sale of DB Schenker was to reduce Deutsche Bahn’s debt burden, which exceeds 30 billion euros. Trade union EVG, which opposed the sale and called it a “strategic mistake”, now hopes that the funds will be used for that reason. However, it also says that the sale is focused on short-term revenue, and omits long-term financial considerations.
“We now expect a clear commitment that the sales proceeds must be used to reduce DB’s debt. This is necessary in order not to jeopardize the group’s financial flexibility”, the trade union says. It also maintains that DB should invest in new vehicles and better service quality to be “future-proof”.
Infrastructure, on the other hand, should be financed by the federal government, EVG. “The federal government must finally take responsibility by providing multi-year financing. Deutsche Bahn must not become [finance minister] Christian Lindner’s cash cow. The railway employees are not the ones who clean up after a misguided budget policy.”
Rail freight association sees things differently
Die Güterbahnen, Germany rail freight sector association, takes opposing views on both matters. “It’s good that Deutsche Bahn and the federal government no longer want to operate as road, air and sea shipping companies”, the association’s director Neele Wesseln says in support of the DB Schenker sale.
“However, investing the proceeds in debt repayment instead of in the rail infrastructure fund that everyone wants is a serious mistake on the part of the federal government”, Wesseln adds. “DB has no debt brake, so the company is still at risk of debt-financed distortion of competition. At the same time, the dilapidated rail infrastructure is lacking essential funds. The Bundestag should consider correcting this decision as part of the 2025 federal budget”, the director concludes.