{"id":259859,"date":"2025-07-31T22:48:09","date_gmt":"2025-07-31T12:48:09","guid":{"rendered":"https:\/\/www.railfreight.com\/?p=64730"},"modified":"2025-07-31T22:48:09","modified_gmt":"2025-07-31T12:48:09","slug":"if-db-cargo-cant-make-a-go-of-single-wagonload-who-can","status":"publish","type":"post","link":"https:\/\/www.vibewire.com.au\/?p=259859","title":{"rendered":"If DB Cargo can\u2019t make a go of single wagonload, who can?"},"content":{"rendered":"<p><strong>Earlier this week came reports that Deutsche Bahn (DB) could be poised to significantly reduce or axe completely its single wagonload (SWL) business. This prompts the question of why this segment of the rail freight market is loss-making and economically unviable. The head of DB Cargo France, Alexandre Gallo, tackled the issue in an interview with RailFreight.com.<\/strong><br \/>\n<span id=\"more-64730\"><\/span>Basically, an SWL offering is one that collects individual freight wagons directly from customers and assembles them into trains for transport. But why is it described by one market analyst as \u201ca diffuse market, complex to operate, volatile and subject to various hazards\u201d?<\/p>\n<h2>Costly but necessary<\/h2>\n<p>\u201cSWL systems are ones with high fixed costs, requiring the same structure for several hundred or several thousand wagons. There are multiple traction breaks, transit times are difficult to meet, and the high price that customers have to pay make the product uncompetitive compared to road transport,\u201d, Gallo said.<\/p>\n<p>\u201cHowever, some manufacturers, particularly those in the chemical industry, need SWLs because of the significant restrictions on the road transport of some of their goods.\u201d He went on to explain that SWLs not only require more manpower, compared to other segments of the rail freight market, but also take up a large amount of track space in marshalling yards.<\/p>\n<aside class=\"readmore\">\n<div class=\"readmore-item\"><a href=\"https:\/\/www.railfreight.com\/business\/2025\/07\/29\/db-cargo-could-get-rid-of-single-wagonload-business-cut-workforce-in-half\/\"><img decoding=\"async\" src=\"https:\/\/www.railfreight.com\/wp-content\/uploads\/2025\/07\/DB281462-128x128.jpg\" alt=\"\" class=\"readmore-thumbnail\" \/><\/a><\/p>\n<div class=\"readmore-info\"><a href=\"https:\/\/www.railfreight.com\/business\/2025\/07\/29\/db-cargo-could-get-rid-of-single-wagonload-business-cut-workforce-in-half\/\" class=\"readmore-title\">\u2018DB Cargo could get rid of single wagonload business, cut workforce in half\u2019<\/a><\/div>\n<\/div>\n<\/aside>\n<h2>Dependant on public funds<\/h2>\n<p>A crucial factor is that the SWL segment is heavily-dependent on public aid. \u201cThe State cannot require operators to maintain SWL systems without providing subsidies for them, especially if they are considered a service of general\/public interest,\u201d Gallo underlined. And if DB Cargo, Europe\u2019s biggest rail operator, can&#8217;t make a go of SWLs, then who can?<\/p>\n<p>\u201cPerhaps lighter, more agile, smaller companies with lower overheads can manage to break even, but undoubtedly thanks to public subsidies,\u201d he observed. Gallo revealed that for DB Cargo France specifically, its SWL activity had been heavily loss-making and that taking into account the high risk of cuts in public subsidies it agreed with its parent to considerably reduce its presence in the French market.<\/p>\n<p>\u201cWe sub-contracted a significant part of our SWL activity to Hexafret (SNCF\u2019s new rail freight subsidiary borne out of the discontinuity of Fret SNCF) which has integrated it into its overall operations, increasing its volumes. We had to close three hubs (Vaires-sur-Marne, Gevrey and Saint-Pierre-des-Corps) and cut 32 jobs. We redeployed two-thirds of the employees to other positions within the company.\u201d<\/p>\n<figure style=\"max-width: 100%; margin: 20px auto; border-radius: 6px; overflow: hidden; box-shadow: 0 2px 8px rgba(0, 0, 0, 0.1);\"><img fetchpriority=\"high\" decoding=\"async\" class=\"fluid alignnone\" style=\"width: 100%; height: auto; display: block;\" src=\"https:\/\/www.railfreight.com\/wp-content\/uploads\/2024\/01\/Alexandre-Gallo-e1753964921656.jpg\" alt=\"Alexandre Gallo, CEO of DB Cargo France\" width=\"636\" height=\"449\" \/><figcaption style=\"padding: 10px 15px; font-size: 14px; background: #f8f8f8; text-align: left; color: #555;\">Alexandre Gallo, CEO of DB Cargo France. Image: \u00a9 Association Fran\u00e7aise du Rail &#8211; AFRA<\/figcaption><\/figure>\n<h2>\u2018Only time will tell\u2019<\/h2>\n<p>At the end of last year as the official dismantling of Fret SNCF approached, a study by management consultancy, Secafi, highlighted that with its focus on SWLs Hexafret would have a costly business model and likely rely on State subsidies to be a going concern. It concluded, somewhat ironically, given Fret SNCF\u2019s fate, that without public financial support, there would be serious doubts over Hexafret\u2019s long-term viability. \u201cI can\u2019t comment on Hexafret as I am not familiar with their strategy but it is clear that they benefit greatly from subsidies given their overwhelming market share of the SWL segment in France. Will Hexafret be able to survive without state aid? Only time will tell,\u201d Gallo added.<\/p>\n<aside class=\"readmore\">\n<div class=\"readmore-item\"><a href=\"https:\/\/www.railfreight.com\/business\/2025\/07\/31\/db-cargo-narrows-losses-gap-but-also-sees-revenue-downturn\/\"><img decoding=\"async\" src=\"https:\/\/www.railfreight.com\/wp-content\/uploads\/2025\/07\/DB239402-128x128.jpg\" alt=\"\" class=\"readmore-thumbnail\" \/><\/a><\/p>\n<div class=\"readmore-info\"><a href=\"https:\/\/www.railfreight.com\/business\/2025\/07\/31\/db-cargo-narrows-losses-gap-but-also-sees-revenue-downturn\/\" class=\"readmore-title\">DB Cargo narrows losses gap, but also sees revenue downturn<\/a><\/div>\n<\/div>\n<\/aside>\n","protected":false},"excerpt":{"rendered":"<p>Earlier this week came reports that Deutsche Bahn (DB) could be poised to significantly reduce or axe completely its single wagonload (SWL) business. This prompts\u2026<\/p>\n","protected":false},"author":13,"featured_media":1,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"om_disable_all_campaigns":false,"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"_uf_show_specific_survey":0,"_uf_disable_surveys":false,"footnotes":""},"categories":[3827,1084,11313,47,379],"tags":[12634],"class_list":["post-259859","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-db-cargo","category-db-cargo-france","category-in-depth","category-rail-news","category-single-wagonload","tag-railfreight"],"aioseo_notices":[],"_links":{"self":[{"href":"https:\/\/www.vibewire.com.au\/index.php?rest_route=\/wp\/v2\/posts\/259859","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.vibewire.com.au\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.vibewire.com.au\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.vibewire.com.au\/index.php?rest_route=\/wp\/v2\/users\/13"}],"replies":[{"embeddable":true,"href":"https:\/\/www.vibewire.com.au\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=259859"}],"version-history":[{"count":4,"href":"https:\/\/www.vibewire.com.au\/index.php?rest_route=\/wp\/v2\/posts\/259859\/revisions"}],"predecessor-version":[{"id":260302,"href":"https:\/\/www.vibewire.com.au\/index.php?rest_route=\/wp\/v2\/posts\/259859\/revisions\/260302"}],"wp:attachment":[{"href":"https:\/\/www.vibewire.com.au\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=259859"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.vibewire.com.au\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=259859"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.vibewire.com.au\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=259859"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}