DB Cargo Posts EUR 350 Million Loss Amid EU-Sanctioned Restructuring: Can Europe’s Largest Freight Carrier Bounce Back?

DB Cargo is bleeding cash—EUR 350 million lost in 2023 alone—but Germany’s not giving up on its rail freight giant just yet. With restructuring underway and EU-approved subsidies on the table, Berlin’s betting on a turnaround. Meanwhile, the rest of Europe is watching closely—asking whether public money can really fix what the market no longer tolerates.

Germany’s national rail freight carrier DB Cargo closed 2023 with a loss of EUR 350 million, according to its official financial disclosure. While the broader Deutsche Bahn Group posted a smaller consolidated loss of EUR 333 million, DB Cargo remains the company’s most loss-making division. Despite the financial hit, DB Cargo management insists that EU-approved public support and internal reforms are creating a path back to profitability.

The European Commission approved EUR 180 million in state subsidies from the German government specifically to support single wagonload traffic (JVZ)—a niche but vital mode of freight transport. These subsidies played a key role in reducing DB Cargo’s deficit, which stood at EUR 497 million in 2022, making 2023 a modest step forward.

DB verzeichnet trotz des Verkaufs ihrer Logistiktochter Schenker einen Mrd.-Verlust. Bis 2027 wieder profitabel? Das kostet 30000 Jobs. Das haben die Privatisierungs-Fans von ihren feuchten Träumen. 🤨
DB Cargo mit Sozialplan, der Rest des Konzerns: 🤷🏻‍♂️//t.co/gGPBNnfTTF

— Florian (@streckenblock) March 15, 2025

"We’ve Cut Loss-Making Services," Says DB Cargo CFO

Despite the ongoing losses, DB Cargo’s Chief Financial Officer Martina Niemann says the company is making tangible improvements. In an interview with Deutsche Verkehrszeitung earlier this year, she noted that administrative and transport management costs had been reduced by EUR 60 million, and the company is refocusing on profitable service areas. "We’ve cut loss-making services, raised prices across the board, and managed to offset recession-related demand drops," Niemann stated.

DB Cargo is now streamlining its operations to adapt to current economic pressures, and Niemann remains cautiously optimistic that the company is stabilising.  Still, not everyone is convinced. According to Germany’s Tagesspiegel, a supervisory board member criticised DB Cargo’s restructuring approach, calling it "unconvincing" and warning that it "creates operational issues and repeatedly misses targets."

While the EU has approved funding for JVZ operations, it has explicitly banned future direct financial support to DB Cargo across the Deutsche Bahn Group. This decision leaves DB Cargo to rely solely on its internal resources moving forward, raising concerns about its long-term competitiveness.

Six New Divisions and 2,300 Jobs on the Line

DB Cargo’s restructuring strategy involves splitting the company into six customer-focused business units, covering sectors such as steel, automotive, liquids and bulk goods, single wagonload traffic (JVZ), maritime and continental combined transport. The reorganisation aims to improve market responsiveness and profitability. However, it also comes at a cost: approximately 2,300 job cuts are expected as part of the broader transformation.

The carrier has also aggressively phased out unprofitable freight flows, resulting in an 8.76% decline in freight volume—from 74.5 billion tonne-kilometres in 2022 to 68.5 billion in 2023. Niemann reiterated that market share is no longer a fixed goal, stating, "If operations are not profitable, we will discontinue them—unless the client’s overall volume justifies continuation."

Competition Offers Cheaper Alternatives

Historically dominant in the German market, DB Cargo has struggled to adapt to increased competition from private operators. Newcomers can now offer rail freight services up to 25% cheaper, undercutting DB Cargo’s pricing model and gaining traction among cost-conscious clients. To address this, the company launched a strategic initiative named “Flow”, aimed at improving asset utilisation and cash efficiency. "The name is inspired by the term ‘cash flow,’” Niemann explained. "We’re rethinking how we use locomotives and wagons, including asset-sharing, leasing, and buy-back schemes. This is the future of rail logistics."

The German government continues to play a vital role in propping up the JVZ model, which has historically been seen as economically fragile but logistically indispensable. In 2024, EUR 300 million in JVZ subsidies were approved by the European Commission, with another EUR 300 million earmarked for 2025. This level of state support stands in sharp contrast to most EU countries, where no comparable aid exists. For Germany, JVZ remains a strategic priority—not just economically, but environmentally, as part of wider efforts to decarbonise freight transport.

Manager Bonuses Spark Backlash

While restructuring was still being formalised, DB Cargo came under fire for authorising bonus payments to senior executives. In 2023, the company paid out EUR 5 million in delayed bonuses from the previous year—a move widely criticised by unions and transport experts amid mounting losses. The backlash showed broader frustration within the industry, where calls for performance-based accountability are growing louder as public funds continue to support struggling operators.

Sources: DB; Deutsche Verkehrszeitung; Tagesspiegel