BERLIN / LONDON (IT BOLTWISE) – The Deutsche Bahn subsidiary DB Cargo is facing major challenges. An internal report by the strategy consultancy Oliver Wyman criticizes the restructuring concept of the freight transport division as inadequate. The EU Commission is demanding that DB Cargo be back in the black next year, which is increasing the pressure on CEO Sigrid Nikutta.
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The Deutsche Bahn subsidiary DB Cargo is facing a crucial phase, as an internal report by the strategy consultancy Oliver Wyman assesses the restructuring concept of the freight transport division as inadequate. According to the report, which is available to the German Press Agency, the concept is not suitable for ensuring sustainable profitability and competitiveness. This assessment increases the pressure on CEO Sigrid Nikutta, who has been struggling with the division’s financial difficulties for years.
As part of a state aid procedure, the EU Commission has determined that DB Cargo must be back in the black next year. This represents a significant challenge as the transport subsidiary has been in the red for years and has so far been supported by the parent company. Nikutta has prescribed a strict austerity course, which, according to the report, is not backed up with sufficiently concrete measures. The assumptions in the planning are also very optimistic and difficult to achieve in the current market environment.
An essential part of Nikutta’s restructuring strategy is the reduction of staff and the sale of vehicles. According to reports, the workforce is to be reduced from 19,000 to 10,000 employees and numerous workshops are to be closed. However, these measures are facing resistance, particularly from the Railway and Transport Union (EVG), which has already called for Nikutta’s dismissal. The union criticizes that the Cargo boss’s previous record is disastrous and that the company’s transformation is more like a mindless winding down.
Another source of hope for DB Cargo is the federal government’s support for individual wagon transport. This sector is crucial for shifting goods from road to rail, but is also very costly. According to reports, the funding that has been in effect since 2024 is not enough to make single-wagon traffic profitable. The future of DB Cargo therefore depends on the successful implementation of a viable restructuring concept that ensures both the competitiveness and financial stability of the company.
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