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Deutsche Bahn is considering significant downsizing at its freight subsidiary DB Cargo, including the potential cancellation of its single wagonload (SWL) business. This segment, which involves the transport of individual wagons rather than full trains, has long been a financial burden. According to German media outlet Handelsblatt, internal sources confirm that consultants are working on scenarios to either drastically scale down or entirely shut down the SWL operations. One of the options under review reportedly includes an 80% reduction in the service, which could lead to halving the company’s workforce.

Deutsche Bahn has confirmed that DB Cargo has been asked to submit a revised concept to make the SWL business sustainable and profitable. While the other divisions of DB Cargo have achieved financial viability, the SWL service continues to operate at a loss. This is attributed to the incomplete allocation of federal funding in 2024, the broader economic downturn, and declining freight volumes across Germany.

A reduction of this magnitude would have a serious impact on the German rail freight market. As of 2023, single wagonload traffic represented 14% of total rail freight in Germany, with DB Cargo accounting for 90% of that share in 2024. If DB Cargo exits or drastically reduces its involvement in SWL, a significant part of the infrastructure for smaller-scale rail shipments would disappear. The move would particularly affect the German steel, chemical and construction industries, which rely heavily on this flexible form of transport.

The situation is also being monitored closely by the European Commission. DB Cargo is under pressure to improve its financial stability and reduce reliance on state aid. The Commission has in recent years taken a stricter stance against state-supported rail operators, as demonstrated by the breakup of the French freight carrier Fret SNCF. A continued lack of profitability in the SWL segment may trigger regulatory action if DB Cargo fails to show signs of restructuring.

DB Cargo’s CEO Sigrid Nikutta stated earlier this year that the company could no longer operate SWL in its current form unless a sustainable financial structure is found. The message from DB Cargo’s leadership is clear: the continuation of single wagonload operations is no longer guaranteed. What was once a cornerstone of Europe’s rail freight network now stands at a crossroads, with broader implications for modal shift policies, industrial supply chains, and the future structure of rail logistics in Germany and beyond.

Source: Railfreight.com