Having been in the black in both 2024 and 2025, DB Cargo France is aiming to balance the books in 2026 after a “poor” start to the year. In an interview with RailFreight.com, the company’s president and CEO, Alexandre Gallo, pointed to the impact of the closure of the Rubi Tunnel near Barcelona.
The tunnel was closed for a number of weeks for major repair work, which had significantly hit France-Spain rail freight traffic flows in the early part of 2026. “Add to that a certain reluctance on the part of shippers to launch new routes or increase frequencies and we’re reduced to aiming for a break-even position this year,” he said.
Rosier picture
DB Cargo recently confirmed 6,200 layoffs in Germany by 2030 – which is almost half of its total workforce. It follows cuts in around 2,300 posts at the end of 2024, also in the context of heavy restructuring. However, it has been a far rosier picture at its French arm where, over a five-year period, the subsidiary has steadily ditched loss-making traffic and short to mid-distance routes, allowing it to improve rolling stock utilisation and increase profitability.
As recently as 2020 and 2021, DB Cargo France was dependent on its parent for 65% of its business. It now generates 75% of its turnover from its own customer base, shielding it from the group’s difficulties in Germany, Gallo told French media last month. He confirmed his comments to RailFreight.com. Gallo also revealed that DB Cargo France leases out its locomotives to its competitors in order to maximise the use of its resources.
“Freight costs break down as follows: 35% for labour costs, 35% for rolling stock, 15% for energy and 15% for train paths. So, if we don’t maximise the use of our resources, we won’t make ends meet.”
Impact of Fret SNCF discontinuity
Commenting on the break-up of Fret SNCF and the obligation to hand over 30% of its freight traffic to competitors, Gallo explained that the entire rail sector has rallied to prevent freight from shifting to road haulage. Things had worked rather well, he said, as all traffic had been retained with the exception of certain French-Italian routes which were severely affected by the closure of the Maurienne line through the Alps between August 2023 and the end of March 2025, following a rockfall.
“On these routes, some freight flows have permanently shifted back to road haulage. We’ve gone from 30 combined transport trains to just 12 today.” He went on to reveal that DB Cargo France had taken on 7 of the 21 freight flows relinquished by Fret SNCF.
“We didn’t go and compete for routes that anyone could run but rather focused on routes that are difficult to operate. For example, between Antwerp and Bayonne, where you need to be familiar with Belgian regulations and have interoperable drivers and locomotives approved in several countries. Our locomotives are certified in France, Germany, Belgium and on part of the Swiss network. We have relied on our technical expertise to strengthen our portfolio.”