Newsletters

Several press report have indicated that the European Commission plans to ban Deutsche Bahn from providing subsidies to DB Cargo. From next year onward, the freight operator will no longer receive financial support from its state-owned parent company, Deutsche Bahn (DB).

As a state-owned operator, DB Cargo has received financial support from Germany’s federal government through DB, with part of its 2023 losses - nearly € 500 million - covered by state money. The Commission argues that this gives DB Cargo an unfair advantage over private competitors who cannot rely on such support. This decision, which has been already communicated to DB’s supervisory board, may further increase the market share of private operators in Germany, who already controlled 59% of the market in 2022. Following the decision of the European Commission, DB cargo plans to eliminate unnecessary administrative processes, streamline management, and adopt a new business structure divided into two units.

The Commission’s decision follows the one given last year to Fret SNCF, DB Cargo’s French counterpart, which was under investigation for excessive state support.

Source: Süddeutsche Zeitung, Railfreight.com