DB Cargo is reportedly considering cutting up to 80% of its single wagonload (SWL) operations and reducing its workforce by as many as 8,000 positions. According to Handelsblatt, the German state-owned rail freight operator is under pressure to reduce losses and comply with EU rules limiting state aid.
The potential restructuring, currently under internal review, could have major consequences for industrial supply chains across Germany, particularly for sectors such as steel, chemicals, automotive and construction. These industries rely heavily on DB Cargo’s SWL service, which collects individual freight wagons from various customers and consolidates them into longer trains at marshalling yards.
Data cited by RailFreight.com show that SWL represented 14% of German rail freight volume in 2023, with DB Cargo responsible for 90% of this segment in 2024. Should the service be cut back significantly, shippers may be forced to shift a considerable share of cargo to road transport; a scenario experts warn could increase costs, strain the already congested road network, and affect delivery reliability.
The German railway union EVG estimates that between 4,000 and 8,000 jobs could be lost if the SWL network is scaled down. EVG also warned in a statement, quoted by Junge Welt, that such a move would endanger climate targets and reduce supply chain resilience for key industries.
At present, DB Cargo is the only operator offering SWL at national scale in Germany. According to statements reported by the Frankfurter Allgemeine Zeitung, private rail freight operators have largely avoided this segment due to low margins and high operational complexity.
DB Cargo CEO Sigrid Nikutta confirmed that “in no European country is single wagonload profitable”, and that the company is therefore pursuing a “rigorous transformation and cost-cutting programme”.
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The financial pressure is mounting. The German news agency dpa reports that Deutsche Bahn is expected to post a loss of around €760 million for the first half of 2025, with DB Cargo identified as the primary loss-maker. Since 2024, following pressure from the European Commission, Deutsche Bahn has been prohibited from directly covering DB Cargo’s losses. Instead, DB Cargo must become independently profitable by the end of 2026.
In this context, the FAZ reports that Deutsche Bahn now only supports its freight subsidiary through loans, not capital injections. A revised SWL business model is expected to be submitted by the end of July, as per Handelsblatt.
The broader political, defence and climate implications of DB Cargo’s potential restructuring have also been widely discussed. As reported by the Frankfurter Allgemeine, DB Cargo plays a key role in transporting military equipment to support Ukraine, and its services reduce road freight volumes by an estimated 40,000 lorries per day. However, these issues have not been the focus of the restructuring plans currently under review.
