Rail closures announced for DB Cargo's railway facilities, signifying a scaling down of operations.
DB Cargo, the freight subsidiary of the railway, has announced a series of changes aimed at increasing efficiency and making the company profitable by 2026. The announcements were made by DB Cargo CEO Sigrid Nikutta, who has prescribed a strict austerity course for the company, cutting what is not profitable.
According to the plans, DB Cargo must write black numbers by 2026, as determined by the EU Commission in a state aid procedure. To achieve this goal, the company plans to close 10 out of 15 external workshops nationwide, affecting 170 jobs. The affected locations include Rostock, Osnabrück, Magdeburg, Senftenberg, Hamburg-Billwerder, Offenburg, Ingolstadt, Regensburg, Emden, and Stendell.
In addition, the workshops in Mainz-Bischofsheim and Hagen, Halle (Saale), Cologne-Gremberg, Mannheim, Oberhausen, Maschen, Nuremberg, Saarbrücken, Seddin, Seelze/Lohnde, and 5 external locations in Bebra, Braunschweig, Bremerhaven, Kornwestheim, and Munich will undergo changes. The closures include 4 workshops in the new federal states.
In the workshops that remain open, only locomotives would be repaired in Halle (Saale), Seelze, and Oberhausen. Workshop maintenance is to cease in Halle (Saale), Seelze, and Oberhausen. The workshop in Mainz-Bischofsheim is to be closed completely.
The DB Cargo restructuring concept was presented to the general works council at the end of July, and negotiations are to begin in September. However, the EVG trade union has criticised DB Cargo's approach as chaotic, stating that the actions have little to do with a vision for the company's future. EVG Vice Cosima Ingenschay referred to DB Cargo CEO Sigrid Nikutta as driving by sight and in the dark.
Despite the closures and job losses, DB Cargo was able to significantly reduce its losses in the first half of the year, but still had an operating loss in the first six months of the current year. The company hopes that these changes will help it to achieve profitability by 2026, as required by the EU Commission.
The changes are also planned at the main locations to increase efficiency through specialized teams. DB Cargo operates 11 maintenance workshops with 15 external locations nationwide, and it is expected that these changes will streamline operations and improve the company's financial performance.
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