DB’s troubles continue despite market growth
DB has “publicly admitted that it is in a difficult financial and operational position” despite an expansion of the overall German rail market in 2018, reports IRJ regional editor Keith Fender.
Figures from the Federal Statistical Office showed growth in long distance travel on the national network of 3.8% to 71 million passengers, and 0.9% in regional and urban rail to 1.3 billion passengers in the first half of the year.
Despite this, DB was reported in December to be planning an increase in its debt ceiling from 20.4bn to 24bn euros, subject to agreement with the German government.
Fender writes that changing market conditions have caused profitability to decline in a number of DB’s rail businesses, while DB Cargo has made losses in Germany and several other important markets including Britain.
One option to find new sources of cash could be for DB to sell a stake in its DB Arriva subsidiary which operates passenger services outside Germany, including the Northern, CrossCountry, Chiltern Railways, Grand Central and London Overground franchises in the UK.
