Is DB Cargo, following DB Schenker, next on the market, at least partially? This is what German press sources suggest, indicating that the parent company Deutsche Bahn might be looking at divesting a stake in its cargo division. Specifically, an article from Handelsblatt dated April 16, 2024, quoted Deutsche Bahn's General Counsel Alexander Gommlich, who described the future of DB Cargo as "open" during a mid-March Supervisory Board meeting.
The freight division boasts an annual revenue of 5.3 billion euros and its trains account for about a fifth of Deutsche Bahn's railway traffic. Nonetheless, the German railway company has faced over half a billion euros in losses and is under the scrutiny of the European Commission, concerned that the federal government might fill this financial void with illicit state aid. A partial sale of DB Cargo could potentially reassure Brussels regarding these concerns.
However, in a statement released on April 17, Deutsche Bahn refuted the Handelsblatt article about the possible sale of DB Cargo, claiming that "statements made by DB employees in a confidential Supervisory Board meeting were completely taken out of context." The statement further added that "the truth is, with the transformation of DB Cargo AG, DB is currently laying the foundation to ensure the company's long-term competitiveness." This denial underscores the company's commitment to restructure and stabilize its cargo division amidst ongoing financial challenges.
