The German Federal Ministry of Transport, led by Minister Patrick Schnieder (CDU), is scheduled to present a strategy next Monday outlining the future direction of the struggling national railway, Deutsche Bahn. Reports suggest the plan may lack the binding force initially hoped for.
According to “Der Spiegel”, the document originates from the Ministry of Transport and doesn’t represent a unified position of the entire German federal government. Minister Schnieder had previously announced a paper detailing the government’s approach as the railway’s owner. However, its implementation would necessitate a formal cabinet decision, a prospect the ministry has declined to comment on.
Concerns are mounting within the rail industry that the strategic void of recent years will persist. Dirk Flege, Managing Director of the industry association Allianz pro Schiene, emphasized that a concept lacking cabinet approval would represent “a significant lack of commitment”. Previous attempts at establishing an owner strategy have faltered due to a failure to achieve consensus within the government.
The crisis at Deutsche Bahn continues to deepen, particularly impacting its freight division, DB Cargo. Auditors reportedly refused to issue an unqualified audit opinion regarding DB Cargo, raising concerns about the company’s viability. This year alone transport volumes are predicted to decrease by a quarter, potentially falling up to 15 percent below projections.
A key challenge stems from the “single wagon transport” business, where goods wagons are picked up and transported for corporations. A commissioned report by management consultant Sigrid Nikutta at Oliver Wyman previously recommended a near-complete cessation of this operation. This recommendation conflicts with the German government’s climate policy goals, which prioritize shifting freight transport to the rail network.
Under political pressure, Nikutta has requested a revised analysis from consultants. What was intended to be a discussion point for the DB Cargo supervisory board last week has seen postponement, with an extraordinary board meeting now scheduled for October 31st.
DB Cargo is planning to close ten external workshops. However, rail union EVG believes such measures are unsustainable without a comprehensive overarching strategy. Union board member Cosima Ingenschay criticized the management’s approach, describing it as a “salami tactic” demanding incremental cuts without a clear long-term vision. Previously offered concessions, such as flexible shift start and end times for employees and non-calculated commute times, are reportedly not being utilized to maximize efficiency.