German rail warns individual freight wagon service unprofitable

DPA

Sun, Apr 6, 2025, 1:41 AM 1 min read

Single wagonload freight is loss-making for DB Cargo, the German rail company's freight operation, and could be shut down, company executive Sigrid Nikutta has told dpa.

"Either we in Germany manage to structure single wagonload transport in a financially sustainable way, or we cannot operate it in this form any longer," Nikutta said.

The state-run rail operator's individual service – in which trucks are collected directly from companies, combined into trains on shunting yards and then delivered in reverse order – is important for the steel, chemicals, construction and other sectors.

The loss-making sector receives support from the German government, but Nikutta emphasized that directions from the European Union, the German government and supervisory boards now demanded profitability.

DB Cargo faces restructuring, with 5,000 jobs set to go by 2029. The European Commission has ruled that the company must go into the black by 2026, after a loss of €350 million ($380 million) last year and a loss of under €100 pencilled in for this year.

EU rules say DB can no longer balance losses with profits in its subsidiaries.