DB Cargo expands by absorbing DB Schenker’s FLS business
The Full Load Solutions business unit from DB Schenker will be transferred to DB Cargo to help the rail company stimulate its reach to European logistics. The FLS activities include rail, road and short-sea services, also implemented in Eurasian transport.
FLS was established in 2019 and deals with high volume streams of Full Loads. Apart from rail, road and short-sea solutions, its additional services include unpacking and repacking, cross-docking, warehousing and container staffing. “ With the addition of FLS operations, DB Cargo will acquire access to customers in the consumer goods and other industries and additional expertise in multimodal door-to-door solutions”, said the leading rail company.
Counterbalancing losses?
DB Cargo has been struggling with financial losses during the last few years. 2021 was also a challenging year, despite reducing the losses by 30 per cent compared to 2020. Sigrid Nikutta, chairwoman of the management board of DB Cargo, has been credited with this positive even though non-profitable result and has been selected to lead DB’s freight division for five more years.
Transferring the FLS business from the way more profitable DB Schenker to DB Cargo could be a move targeting the financial recovery of DB Cargo. Apart from expanding its logistics offer, DB Cargo could also have a chance to incorporate a profitable unit in its business that will probably make its financial outlook for 2022 look better.
“We are becoming a rail logistics company with rail at its heart! Thanks to our colleagues’ high level of expertise at FLS, tailor-made logistics and service solutions can be found for every single customer. Customers thus receive real added value in their climate-friendly supply chain. And at the same time, they retain the contact persons they have trusted over the years. I am delighted about this further step in our “Strong Cargo” growth strategy”, commented Nikutta.
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