DB Cargo’s Chief Executive Expects Profitability by End of 2026
Sigrid Nikutta, the head of DB Cargo, the German railway company’s logistics arm, has expressed optimism about the company’s financial prospects, stating that it is on track to become profitable by the end of 2026. In an interview with the German news portal T-Online, Nikutta reported that the company is expected to incur only a two-digit million-euro loss by the end of this year, a significant improvement from previous years.
Nikutta attributed the turnaround to ongoing reforms and cost-cutting measures within the company, as well as a reduction in staff numbers, with around 3,000 of the 5,000 planned job cuts already implemented. The executive also highlighted the company’s success in achieving a profit in May, a milestone that she described as a “real Tschakka-moment” for the team.
However, Nikutta identified the single-wagon freight business as a major concern, accounting for 80% of the company’s losses. Despite the challenges, she emphasized the importance of this sector, warning that its demise would be an “industrial policy catastrophe.” DB Cargo’s single-wagon freight business, she explained, replaces 40,000 truck journeys daily, a service that no other company is willing to provide in the current market.
Nikutta also called for a reform of the funding mechanism, citing the company’s relatively high market share but low funding rate of around 60%. Germany annually allocates 300 million euros in funding for the rail freight industry, but a complex application process hinders the full disbursement of the funds. The current system, Nikutta argued, is “extremely complicated” requiring companies to pre-announce their goods transportation plans to the government. The DB Cargo chief executive demanded a simpler mechanism for the distribution of the funds, urging that the entire 300 million euros be made available to the industry.