Wissing advocates for an all-encompassing restoration strategy for railways.
Transport Minister Volker Wissing has urged for extensive overhauls at German Rail, promising close scrutiny of the state-owned company's objectives. "Urgent changes are required in both the financial and organizational sectors," stated Wissing.
He has mandated German Rail to propose a restructuring strategy to boost operational performance. The corporation has formulated such a strategy, which will be forwarded to the supervisory board shortly. The supervisory board will then review and endorse this strategy in its subsequent meeting.
"German Rail then needs to promptly propose a plan for enacting this restructuring strategy," said Wissing. He expects the rail company to execute this strategy "with meticulous care and diligence." The rail company's interim report has exposed substantial opportunities for improvement. "Nearly all significant business sectors of DB AG are in deficit, with DB Cargo and DB Long-Distance, which typically generates profits, being notably affected," said Wissing.
It's apparent that infrastructure enhancements alone won't steer the rail company towards prosperity. "Therefore, we must also advocate for operational measures," underscored the transport minister. He has requested the rail company to tackle seven key areas and propose strategies for them. The primary foci are enhancing punctuality, simplifying management structures, and developing a coping strategy for extreme weather conditions.
Wissing Advocates for Efficient Use
Wissing's ministry also emphasized improving the efficiency of long-distance trains, reassessing investments beyond infrastructure renovation, improving planning dependability and process efficiency at DB Infrago, and amplifying digitization in operations. "German Rail needs to swiftly revert to a path of dependability," demanded Wissing. "We expect German Rail to attain leading global performance in punctuality in the long run."
In the area of administration, an imbalance has emerged between personnel concentrating on operations and those managing administration. "German Rail must therefore amplify its productivity and decrease overhead expenses," demanded Wissing. However, it's not about dispensing with operational staff. The federal government also wants investments beyond infrastructure renovation to be reevaluated, such as for train procurement. "Here, more consideration ought to be given to standardization and cost efficiency." A risk management strategy for climate change is also necessary.
Decision on Schenker "Swiftly"
He intends to guarantee objectives are met, asserted Wissing. "If we detect deviations from the targeted path, I want to act promptly." A detailed monitoring system is plotted, with German Rail to report on each action area every quarter. "I will be notified immediately if there's a deviation from the target in a quarter and will personally address the issue to ensure that we swiftly revert to the goal achievement path," he said.
The DB subsidiary Schenker is anticipating a speedy decision on the sale, according to Wissing. "I expect decisions to be made promptly," said the FDP politician. He declined to disclose details on the sales process, such as whether he favors any offer.
Sources close to the negotiations claim that two bidders remain for Schenker: the Danish logistics company DSV and financial investors led by CVC. Both are reported to have submitted final bids of approximately 14 billion euros.
The Commission needs to closely review and endorse the proposed restructuring strategy by German Rail, as mandated by Transport Minister Volker Wissing. Wissing also expects German Rail to execute this strategy with meticulous care and diligence, as substantial opportunities for improvement have been identified in the rail company's interim report.
