{"id":259865,"date":"2025-07-31T20:19:17","date_gmt":"2025-07-31T10:19:17","guid":{"rendered":"https:\/\/www.railfreight.com\/?p=64715"},"modified":"2025-07-31T20:19:17","modified_gmt":"2025-07-31T10:19:17","slug":"db-cargo-narrows-losses-gap-but-also-sees-revenue-downturn-2","status":"publish","type":"post","link":"https:\/\/www.vibewire.com.au\/?p=259865","title":{"rendered":"DB Cargo narrows losses gap, but also sees revenue downturn"},"content":{"rendered":"

Germany\u2019s national rail freight operator DB Cargo has achieved some financial successes in the first half of 2025. Its operating losses dropped substantially. However, so did its revenues, as the company is undergoing a transformation programme to become financially stable by the end of 2026.<\/strong>
\n<\/span>DB Cargo\u2019s earnings before interest and taxes (EBIT) improved to negative 96 million euros. In H1 2024, that number was significantly worse at minus 261 million euros. In other words, DB Cargo achieved a 63.2% reduction in its operating losses.<\/p>\n

At the same time, however, its H1 2025 revenues also dropped by 9.1% to 2,53 billion euros from 2,78 billion euros. DB highlights freight performance declines in Germany and the UK, which were \u201cexacerbated by negative currency effects\u201d. Price increases partially offset the drop in revenues, the company says.<\/p>\n

DB Cargo also transported fewer goods at 82,9 million tonnes. In the same period of 2024, that number was 92,9 million tonnes. In terms of performance, DB Cargo drove 29,99 billion tonne-kilometres, 16% less than in H1 2024 (35,70 billion tonne-kilometres).<\/p>\n

\"A
A CT train of DB Cargo. Image: Deutsche Bahn AG. \u00a9 Wolfgang Klee<\/figcaption><\/figure>\n

Path to profitability<\/h2>\n

The freight operator aims to become profitable by the end of 2026, after the EU banned state aid for the company and threatened to break it up<\/a> due to excessive financial support, in similar fashion to what happened with Fret SNCF<\/a>.<\/p>\n

DB Cargo has resorted to operational model revisions, discontinuations of unprofitable services and price adjustments to improve its finances. It has also aimed for higher capacity utilisation and introduced \u201cefficient direct train concepts\u201d, DB says.<\/p>\n

\u201cThrough consistent cost control, expenses were already noticeably reduced in the first half of 2025. DB Cargo also introduced measures to make the use of locomotives and freight wagons more economical – including sale-and-leaseback models\u201d, the H1 report states.<\/p>\n

SWL and workforce<\/h2>\n

A large obstacle to profitability is DB Cargo\u2019s single wagonload (SWL) business. DB Cargo is now restructuring that network. An updated version of the network should improve efficiency through standardised shuttle services and more effective use of facilities with fewer marshalling tracks, reduced dwell times and closed-loop locomotive schedules.<\/p>\n

Nevertheless, DB also points out that subsidies for SWL traffic will remain a necessity. \u201cA robust subsidy framework remains essential to maintain a nationwide single wagonload network sustainably and economically in the long term.\u201d For 2025, 300 million euros are planned to be reserved in SWL subsidies from the German federal government budget.<\/p>\n

With the help of a new operating model for Combined Transport (CT) locomotive drivers and simpler administrative processes, DB Cargo has managed to reduce its workforce in CT by 10% compared to the end of 2024.<\/p>\n

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The future of SWL and the company\u2019s workforce are currently uncertain:<\/strong> Earlier this week, German publication Handelsblatt reported that DB Cargo was considering a reduction in its SWL business by up to 80% and halving the company\u2019s workforce.<\/p>\n