Reportedly, he's undergoing a severe three-year treatment regimen.
German Railway is set for a significant transformation, with deeper cuts than initially anticipated. As a government representative put it, "We're looking at a three-year revamping process across the entire company." In rail industry circles, this transformation is seen as a harsh treatment, internally known as "Project S3." The corporation's announcement of eliminating about 30,000 administrative positions over a five-year period might not be enough for this transformation. There's also a possibility of reducing long-distance train connections, a move the company has previously denied. After about three years, German Railway isexpected to return to profitability.
The rationale behind this is that both local and long-distance services, as well as the network, have been racking up losses lately. DB Cargo, the freight subsidiary, has been in a prolonged crisis and can no longer receive corporate support due to EU pressure.
Federal Transport Minister Volker Wissing has scheduled a press conference for the day after tomorrow, following the state elections in Thuringia and Saxony. Wissing has hinted that focusing solely on network restructuring, as suggested in the conference invitation, would no longer suffice. Economic and organizational changes would also be necessary. Wissing's spokesperson remained tight-lipped about specifics, while the railway refused to comment but had previously stated its intent to operate more efficiently.
German Railway is currently pushing for the sale of its international logistics subsidiary, Schenker, which could generate around 14 billion euros. Schenker is the only major profit generator for the state-owned company. With the sale, the company could buy some time for its transformation process.
The savings programme, proposed to aid German Railway's transformation, is expected to include both economic and organizational changes. Despite selling its international logistics subsidiary, Schenker, for around 14 billion euros, German Railway still needs to find ways to make its core operations profitable.
