Decrease in DB Cargo Operations - Shutdown of Railways Facilities

DB Cargo, the freight subsidiary of the German railway, has announced plans to restructure its operations in Germany, which includes the closure of several workshops and branches. The restructuring aims to achieve greater efficiency through specialized teams and meet EU Commission requirements to return to profitability by 2026.

The 10 workshops in Hagen, Halle (Saale), Cologne-Gremberg, Mannheim, Oberhausen, Maschen, Nuremberg, Saarbrücken, Seddin, and Seelze/Lohnde will remain operational, with locomotives being the only equipment to be repaired at these locations. However, wagon maintenance will be discontinued in Halle (Saale), Seelze, and Oberhausen.

On the other hand, the workshop in Mainz-Bischofsheim and 10 external branches in Rostock, Osnabrück, Magdeburg, Senftenberg, Hamburg-Billwerder, Offenburg, Ingolstadt, Regensburg, Emden, and Stendell are planned to be closed. This decision is expected to result in the loss of 170 jobs.

DB Cargo CEO Sigrid Nikutta has prescribed a strict austerity course for the company, with the goal of cutting what is not profitable. However, the EVG trade union, representing the workers at DB Cargo, has criticized the company's approach as chaotic and has stated that they will not accept the closure plans. EVG Vice Cosima Ingenschay described DB Cargo CEO Sigrid Nikutta's actions as having little to do with a vision for the company's future.

It is important to note that DB Cargo has been in crisis for years and must write black numbers from 2026 as determined by the EU Commission in a state aid procedure. Despite a significant reduction in losses in the first half of the year, DB Cargo recorded an operating loss for the first six months of the current year.

The closure of factories is the next step in the company's restructuring efforts. DB Cargo plans to close 10 out of 15 external branches in Germany, with 4 of them being in the new federal states. The concept was presented to the general works council of DB Cargo at the end of July, and negotiations on this are to begin in September.

The closure of these factories is not the only step DB Cargo is taking to improve its financial situation. The company aims to achieve greater efficiency through specialized teams as a result of the restructuring. The 5 external branches in Bebra, Braunschweig, Bremerhaven, Kornwestheim, and Munich will remain with DB Cargo.

This restructuring comes at a time when the freight industry is facing numerous challenges, including increased competition, changing customer demands, and the need to adapt to new technologies. DB Cargo's decision to close certain workshops and branches is part of a broader effort to adapt to these changes and secure the company's future.

As negotiations on the closure plans begin, it remains to be seen how the situation will unfold. The EVG trade union has already expressed its opposition to the plans, and it is expected that there will be further discussions and potential actions in the coming months.