The German state-owned rail freight operator is facing an uncertain future due to significant losses and proceedings from the European Commission (EC). In an attempt to become profitable, DB Cargo might be divided into six divisions dedicated to different types of transport.
The initiative was shared by German media RedaktionsNetzwerk Deutschland (RND), which cites a DB internal paper. Rumours concerning a DB break-up, however, have been in the air for some time. According to RND, there will be one branch each for the steel and the automotive industries, with a third one for liquids and bulk. Two more divisions will be in charge of combined transport. It is not yet clear what the sixth unit will be doing.
Spotlight on state-owned companies
DB Cargo has been under investigation for receiving support from the German government despite often being in the red, which the EC considered as possible unfair state aid. One of the possible solutions to avoid total closure is a restructuring, which brought fears of job cuts, with the company saying it was just speculation. However, it seems that around 1,800 workers will be transferred to other members of the DB Group or will be laid off.
DB Cargo is not the only state-owned rail freight company on which the EC has set its eyes. French Fret SNCF will also undergo a major restructuring process, as a consequence of an investigation from the Commission. Such initiatives have not been warmly welcomed by the industry, including the European Transport Workers’ Federation and the European Trade Union Confederation, which took to the streets in Brussels in December 2023.
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