News this week that DB Cargo UK is looking for a new owner has prompted speculation that the German state-owned operator’s restructuring programme could include a sell-off of other subsidiaries. However, DB Cargo France president and CEO, Alexandre Gallo, has told RailFreight.com in an interview that relinquishing the company was “not on the agenda at the moment.”
He said DB Cargo UK was “quite isolated” from the DB Cargo network, “whereas we are at the heart of the operation.” DB Cargo France operates a large number of trains between Germany and Spain, carrying finished cars in both directions or via combined transport for its parent company, Gallo explained.
“But we cannot draw any conclusions (about a possible sale). I do not wish to comment on the matter at this stage; it is too early, and I do not think the Group wishes to discuss it at present either”. Earlier this summer, DB Cargo confirmed 6,200 lay-offs 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.
French branch is doing well
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. DB Cargo France was in the black in both 2024 and 2025 and is aiming to balance the books in 2026 after a “poor” start to the year, with Gallo citing the impact on traffic from the closure of the Rubi Tunnel near Barcelona.
As for the outlook, he said DB Cargo France had “quite a few projects in the pipeline” but declined to elaborate. The company has previously outlined plans to launch a combined rail-road service between Paris and Daventry, Northamptonshire, England, in partnership with UK logistics company John G. Russell.
Channel Tunnel: ‘high’ rail freight rates
Returning to DB Cargo UK, Gallo said the company was very clearly geared towards its domestic market which was also a consequence of the low volume of freight passing through the Channel Tunnel. “What (Tunnel operator) Getlink fails to realise is that, as long as rates (through the Tunnel) remain so high, rail freight will not be able to compete with the ferry, even with a shorter transit time and fewer transhipments.”
He pointed to the Perthus Tunnel between France and Spain where the operator had reduced tolls, a policy which had contributed to record levels of freight traffic in July and June. In 2025, rail freight via the Channel Tunnel only represented 10% of the annual capacity available. In the first half of the current year, 522 freight trains operated through the France-UK fixed link, down 11% on the same period the previous year.