Profitability by 2027

Deutsche Bahn confirms restructuring plans

Image: Shutterstock. © Frederick Hornung

Deutsche Bahn (DB) confirms that there is an internal restructuring plan. The plan is supposed to lay the groundwork for the company’s profitability by 2027. It will present the concept to its supervisory board on 18 September.

“The management board will launch an overall programme to restructure DB over the next three years and present it to the supervisory board on 18 September”, a DB spokesperson told RailFreight.com.

“It is true that over the past two months, in coordination with the ministry for transport (BMDV), we have developed a program aimed at restructuring the infrastructure, the operational situation and the economic situation”, DB says. The company considers the programme to be the basis for “getting DB back on the growth path of our Strong Rail strategy.”

DB wants to meet the federal government’s transport policy goals by 2027. “We will measure progress against fixed targets and discuss them regularly with the Supervisory Board and the owner”, the company says.

“Old wine in new bottles” at Deutsche Bahn

“One thing is clear: we need a positive turnaround for our customers in Germany and for DB. The last few months have highlighted the clear weaknesses of the rail system in Germany for everyone to see. With the general refurbishment of the Riedbahn, we are showing as a first step that we can improve the rail system structurally and sustainably with radical new approaches”, the DB spokesperson concludes.

Based on reporting by German publication DVZ, Deutsche Bahn wants to make a profit of 2 billion euros by 2027. Many insiders consider this to be unrealistic, calling it “old wine in new bottles” and pointing to DB Cargo’s losses as an obstacle to profitability.

The restructuring plan seems to look for a solution in passenger transportation more than anything. According to DVZ, CEO Richard Lutz promises to grow commuter connections, redesign regional networks, grow internationally, shorten train turnaround times and reduce reserve high-speed ICE trains.

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Author: Dennis van der Laan

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Deutsche Bahn confirms restructuring plans | RailFreight.com
Profitability by 2027

Deutsche Bahn confirms restructuring plans

Image: Shutterstock. © Frederick Hornung

Deutsche Bahn (DB) confirms that there is an internal restructuring plan. The plan is supposed to lay the groundwork for the company’s profitability by 2027. It will present the concept to its supervisory board on 18 September.

“The management board will launch an overall programme to restructure DB over the next three years and present it to the supervisory board on 18 September”, a DB spokesperson told RailFreight.com.

“It is true that over the past two months, in coordination with the ministry for transport (BMDV), we have developed a program aimed at restructuring the infrastructure, the operational situation and the economic situation”, DB says. The company considers the programme to be the basis for “getting DB back on the growth path of our Strong Rail strategy.”

DB wants to meet the federal government’s transport policy goals by 2027. “We will measure progress against fixed targets and discuss them regularly with the Supervisory Board and the owner”, the company says.

“Old wine in new bottles” at Deutsche Bahn

“One thing is clear: we need a positive turnaround for our customers in Germany and for DB. The last few months have highlighted the clear weaknesses of the rail system in Germany for everyone to see. With the general refurbishment of the Riedbahn, we are showing as a first step that we can improve the rail system structurally and sustainably with radical new approaches”, the DB spokesperson concludes.

Based on reporting by German publication DVZ, Deutsche Bahn wants to make a profit of 2 billion euros by 2027. Many insiders consider this to be unrealistic, calling it “old wine in new bottles” and pointing to DB Cargo’s losses as an obstacle to profitability.

The restructuring plan seems to look for a solution in passenger transportation more than anything. According to DVZ, CEO Richard Lutz promises to grow commuter connections, redesign regional networks, grow internationally, shorten train turnaround times and reduce reserve high-speed ICE trains.

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Want full access? Take advantage of our exclusive offer

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Author: Dennis van der Laan

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