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DB Cargo UK being sold

XCTurbostar

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Looks like DB is looking to cut DB Cargo UK.


One of Britain's biggest rail freight operators is being put up for sale as its state-owned German parent confronts financial challenges in its domestic and wider European businesses.

Sky News has learnt that DB Cargo UK is working with advisers at Interpath on an auction, with talks already underway with prospective bidders.

DB Cargo UK employs about 2,200 people, according to its website, providing freight, infrastructure and passenger charter trains across the UK, as well as freight services to and from mainland Europe via the Channel Tunnel.

The company is part of Deutsche Bahn, the state-owned German rail operator.

Reports suggest that DB Cargo UK's loss-making German parent planned to cut more than 6,000 jobs in its home market by 2030 - equating to roughly half its workforce in the country.
 
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Wavertreelad

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With the shipping company CMA CGM already owning Freightliner, I would not be surprised if MSC through it's Medlog/Maritime Transport Ltd subsidiary put in an offer to buy the business. That could then allow them negotiate a deal with Infracapital - the unlisted infrastructure equity arm of M&GPrudential who own GBR Freight to transfer the commercial freight business of both businesses merged under a single Medlog owned subsidiary and the remainder of the DB Cargo Business transferred to GBR Freight Ltd. As the world largest container shipping line, MSC /Medlog would have no problem providing the necessary volumes to support the services. No basis just pure speculative thinking.
 

Rail Quest

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Feels like they've been moving towards this step for a very long time. I've been hearing rumours for a while they wanted to get rid.

I don't think I've followed such a large rail operator sale before, does the business have to be sold as one thing or is it possible the other operators could buy portions of the business (IE one company takes x locos, y drivers and z contracts, another operator takes others etc.)?
 

pokemonsuper9

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What's the breakdown on cargo types for DB?
I know they do the Knowsley - Tees dock waste train, and some cargo but I'm not too sure beyond that.
There's the yard at Warrington but I feel like I don't see many of those wagons move (and I'm not certain what they are for anyway, coal/aggregate?)
 

Wavertreelad

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Feels like they've been moving towards this step for a very long time. I've been hearing rumours for a while they wanted to get rid.

I don't think I've followed such a large rail operator sale before, does the business have to be sold as one thing or is it possible the other operators could buy portions of the business (IE one company takes x locos, y drivers and z contracts, another operator takes others etc.)?
Apparently the European Commission's strict State Aid regulatory mandates have directly forced Germany's state-owned state rail operator, Deutsche Bahn, to aggressively scale back its international footprint. Following a major 2024 European Commission State Aid ruling, Brussels approved €1.9 billion in German government support for DB Cargo on the strict condition that the company implement a sweeping restructuring program. To mitigate market distortion and restore long-term profitability by a hard December 31, 2026 deadline, DB Cargo committed to divest certain assets and activities outside its primary market.

Various sources are stating CEO Andrea Rossi confirmed that the UK Management Board, supported by legal and financial advisers (including Interpath), is conducting a structured bidding process to secure fresh capital, market scale, and long-term expansion opportunities.

It's not clear if that bidding process is for the whole company or just parts of the business, but given the diverse nature of business I suspect they would gain higher bids if the business was split up and the different bits absorbed into existing businesses or new entities.
 

Freightmaster

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What's the breakdown on cargo types for DB?
I know they do the Knowsley - Tees dock waste train, and some cargo but I'm not too sure beyond that.

DB's main contracts include, but are not limited to:


- biomass from Immingham to Drax

- steel traffic from/to/within South Wales

- domestic waste from Northolt/Brentford to Avonmouth and Knowsley to Wilton

- stone from Mountsorrel quarry to various terminals in East Anglia/the Home Counties

- intermodal traffic from Felixstowe, London Gateway and Southampton to various terminals

- stone traffic from the Peak Forest area to Washwood Heath, Warrington, Attercliffe, Luton, etc.

- spoil from the London area to Tinsley, Burton and Forders

- iron ore and coke from Immingham to Scunthorpe

- sand from Cliffe/Newhaven/Dagenham to various London area terminals

- steel from Scunthorpe to Lackenby/Skinningrove/other terminals

- bottled water from France to Daventry

- blocks from Heck to Bow/Biggleswade

- flyash from Drax to Appleford

- coal from Immingham to Hope

- peteroleum products from Humber to Kingsbury and Robeston to Westerleigh/Theale

- departmental traffic from Millerhill to Carlisle

- weekend engineering possession trains as needed



...and that's just off the top of my head - DB are very much a 'jack of all trades' FOC! :smile:
 

507 001

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This is one of the least surprising things I’ve heard in a while.

The whole operation has had an air of neglect about it for years.
 

Bletchleyite

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"Marston Vale mafia"
I mean I wouldn't be a bad time to bring into the GBR fold ;)

I've created a speculative thread to discuss that:

 

mrcheek

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I don't think I've followed such a large rail operator sale before, does the business have to be sold as one thing or is it possible the other operators could buy portions of the business (IE one company takes x locos, y drivers and z contracts, another operator takes others etc.)?

Even if one company bought the lot, its likely they would sell off certain bits.
Some locos might go, plus they would look at certain contracts and say "No, dont want that one any more". So some contracts would be let go to other operators as soon as they expired
 

Merle Haggard

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When a freight TOC is reduced to selling off their own locos' nameplates through auctions one can sense that they have a serious cash flow problem.
Also alleged to have cut down yard lighting towers to save money on necessary maintenance but rather restricting the use of the yard in hours of darkness.
 

D1511

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DB's main contracts include, but are not limited to:


- biomass from Immingham to Drax

- steel traffic from/to/within South Wales

- domestic waste from Northolt/Brentford to Avonmouth and Knowsley to Wilton

- stone from Mountsorrel quarry to various terminals in East Anglia/the Home Counties

- intermodal traffic from Felixstowe, London Gateway and Southampton to various terminals

- stone traffic from the Peak Forest area to Washwood Heath, Warrington, Attercliffe, Luton, etc.

- spoil from the London area to Tinsley, Burton and Forders

- iron ore and coke from Immingham to Scunthorpe

- sand from Cliffe/Newhaven/Dagenham to various London area terminals

- steel from Scunthorpe to Lackenby/Skinningrove/other terminals

- bottled water from France to Daventry

- blocks from Heck to Bow/Biggleswade

- flyash from Drax to Appleford

- coal from Immingham to Hope

- peteroleum products from Humber to Kingsbury and Robeston to Westerleigh/Theale

- departmental traffic from Millerhill to Carlisle

- weekend engineering possession trains as needed



...and that's just off the top of my head - DB are very much a 'jack of all trades' FOC! :smile:
That's impressive, off the top of your head!

Mossend and Grangemouth to Tees Dock flow are also DB I'm sure......unless already included in the steel flows listed above. 4S99 runs more or less daily. There's a Dalzell-Tyne Dock flow too, but less regular.

All the Millerhill-Kingmoor engineering flows are DB as you've said, and they're regular too. 6M51 runs every day.
 

londonmidland

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The state of pretty much every DB owned yard says it all.

Run down and neglected looking. They often resemble a scrap yard as opposed to a working yard.

GBRf, in contrast, are much better presented in all areas.
 

D1511

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The state of pretty much every DB owned yard says it all.

Run down and neglected looking. They often resemble a scrap yard as opposed to a working yard.

GBRf, in contrast, are much better presented in all areas.
Arpley certainly has that look about it. A bunch of graffitied hopper wagons that haven't moved for yonks ....
 

Merle Haggard

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It started so well.

Mr Ed Berkhardt's Wisconsin Central were chosen to have all the BR Railfteight businesses - apart from Freighliner - after an interview at the British Embassy in New York ... allegedly.
So many promises of expansion by Ed, so much better once all the nationalised-era managers 'managing decline' have gone. The 200 66s were all for extra traffic, all the existing locos would still be needed. Freight traffic tonne-miles would be doubled.

Who would have guessed that it would all turn to this? Hmmm ...
 

Solweytracker

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For clarity, and appreciating your speculative point, by '...transfer the commercial freight business...' do you mean 'merging the international and intermodal (ie container) rail traffic of DB Cargo UK with GBRF's into the international shipping-owned unit'?. Similarly merging the other remaining traffics e.g. construction, waste, metals, oils, Network Rail-contracted departmental operations with GBRF's into a separate enlarged company.With the shipping company CMA CGM already owning Freightliner, I would not be surprised if MSC through it's Medlog/Maritime Transport Ltd subsidiary put in an offer to buy the business. That could then allow them negotiate a deal with Infracapital - the unlisted infrastructure equity arm of M&GPrudential who own GBR Freight to transfer the commercial freight business of both businesses merged under a single Medlog owned subsidiary and the remainder of the DB Cargo Business transferred to GBR Freight Ltd. As the world largest container shipping line, MSC /Medlog would have no problem providing the necessary volumes to support the services. No basis just pure speculative thinking.
For clarity, and appreciating your speculative point, by '...transfer the commercial freight business...' do you mean 'merging the international and intermodal (ie container) rail traffic of DB Cargo UK with GBRF's into the international shipping-owned unit'?. Similarly merging the other remaining traffics e.g. construction, waste, metals, oils, Network Rail-contracted departmental operations with GBRF's into an enlarged, separate single unit.

That's impressive, off the top of your head!

Mossend and Grangemouth to Tees Dock flow are also DB I'm sure......unless already included in the steel flows listed above. 4S99 runs more or less daily. There's a Dalzell-Tyne Dock flow too, but less regular.

All the Millerhill-Kingmoor engineering flows are DB as you've said, and they're regular too. 6M51 runs every day.

Adding to Freightmaster's #7and D1511's #14 contract lists, DB Cargo UK still have a number of contracts or rights where they are hired e.g. with class 66s on 0T00 turns, to do the marshalling of Network Rail's departmental trains in Virtual Quarry/LDC yards such as Kingmoor/Millerhill/Hoo Jcn/Westbury/Hinksey, until recently Tyne. Some of these yards DB Cargo own.
 

och aye

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Bring back EWS and the big beasties. :E

No.60068_Charles_Darwin_%28Class_60%29_%286738817037%29_%28cropped%29.jpg
 

Wavertreelad

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For clarity, and appreciating your speculative point, by '...transfer the commercial freight business...' do you mean 'merging the international and intermodal (ie container) rail traffic of DB Cargo UK with GBRF's into the international shipping-owned unit'?. Similarly merging the other remaining traffics e.g. construction, waste, metals, oils, Network Rail-contracted departmental operations with GBRF's into an enlarged, separate single unit.

Broadly speaking yes.

MSC has long term contracts with GBrF whilst their subsidiary Medlog /Martime Transport has contracts with DB Cargo so bringing them together would be bring economies of scale etc., and whilst it operates it's own trains elsewhere in Europe, the only way it could likely achieve this in the UK would be to purchase an existing operator.

CMA-CGM is the second largest global shipping line and snapped up Freightliner earlier in the year in part to counter MSC's acquisition of Maritime Transport in 2024 which previously been major suppliers of road haulage capacity to many other shipping lines, including CMA CGM. Now whilst MSC stated at the time that Maritime Transport would continue to operate independently inevitably other shipping lines faced the prospect of their largest competitor ultimately controlling their costs and service levels. It's believed to be one of the reasons why Hapag LLoyd and Maersk when planning their Gemini network in February 2025 were forced to alter their plans in late 2024 to use London Gateway Port instead of Felixstowe for their Asia Europe Services because Hapag was unable to secure sufficient road and rail haulage capacity from Felxistowe.

MSC will no doubt be aware of the EU directive from 2024 to DB Cargo to divest it's overseas subsidiaries and will have looked at the UK market and seen that all three intermodal operators were largely owned by private equity firms in the main so one way or another there would be opportunities to enter the market if it wanted to. Whether MSC/Medlog would want to take on all of DB Cargo is probably debateable, they will certainly be interested in the Intermodal traffic and perhaps the automotive and steel traffic bearing in mind that Maritime's road transport fleet is highly diversified let alone some of the volumes could belinked to international movements. There could also be an interest in the petrochemical traffic as this will have international connections and MSC has recently entered the tanker market through a South Korean company. I doubt MSC will be too interested in the infrastructure, passenger etc business which could be snapped up by other operators. In the longer term, I could envisage MSC then going on to acquire the intermodal business of GBRF depending on how any purchase of DB Cargo UK pans out.
 

sharpley

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DB's main contracts include, but are not limited to:


- biomass from Immingham to Drax

- steel traffic from/to/within South Wales

- domestic waste from Northolt/Brentford to Avonmouth and Knowsley to Wilton

- stone from Mountsorrel quarry to various terminals in East Anglia/the Home Counties

- intermodal traffic from Felixstowe, London Gateway and Southampton to various terminals

- stone traffic from the Peak Forest area to Washwood Heath, Warrington, Attercliffe, Luton, etc.

- spoil from the London area to Tinsley, Burton and Forders

- iron ore and coke from Immingham to Scunthorpe

- sand from Cliffe/Newhaven/Dagenham to various London area terminals

- steel from Scunthorpe to Lackenby/Skinningrove/other terminals

- bottled water from France to Daventry

- blocks from Heck to Bow/Biggleswade

- flyash from Drax to Appleford

- coal from Immingham to Hope

- peteroleum products from Humber to Kingsbury and Robeston to Westerleigh/Theale

- departmental traffic from Millerhill to Carlisle

- weekend engineering possession trains as needed



...and that's just off the top of my head - DB are very much a 'jack of all trades' FOC! :smile:
Cars as well. Toyota from Toton to the Channel Tunnel. Mini's from Oxford to Southampton. JLR as well?
 

mickey

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Cars as well. Toyota from Toton to the Channel Tunnel. Mini's from Oxford to Southampton. JLR as well?
Indeed, there’s usually a few of the car wagons around Didcot.

It’s another nail in the coffin for hopes of increasing international railfreight though, given their wide-reaching connections (across Europe and all the way into China) DB are usually considered the best prospect of growing longhaul railfreight networks, but which look ever more unlikely to materialise.
 

Bald Rick

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Mr Ed Berkhardt's Wisconsin Central were chosen to have all the BR Railfteight businesses - apart from Freighliner - after an interview at the British Embassy in New York ... allegedly.

Very pedantically (sorry!), that couldn’t have happened.
The British Embassy in the USA is in Washington DC. New York has a Consulate General.
 

Merle Haggard

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Very pedantically (sorry!), that couldn’t have happened.
The British Embassy in the USA is in Washington DC. New York has a Consulate General.

Thanks, location assumed, should have checked that; but Ed was invited to meet the Minister of Transport in the US while the managers of the 3 TLF companies were pointlessly constructing their MBO offers.
 

stantheman

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DB also have the new thrice weekly Mossend to Masbrough FD to Felixstowe , it’s been full several times recently and is delightful bright red 66 with yellow orange green and red boxes

== Doublepost prevention - post automatically merged: ==

That's impressive, off the top of your head!

Mossend and Grangemouth to Tees Dock flow are also DB I'm sure......unless already included in the steel flows listed above. 4S99 runs more or less daily. There's a Dalzell-Tyne Dock flow too, but less regular.

All the Millerhill-Kingmoor engineering flows are DB as you've said, and they're regular too. 6M51 runs every day.
6M51 does not always run . DB also have the Seaforth to Mossend which might be daily now but I think is a short train
 

Sir Felix Pole

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It started so well.

Mr Ed Berkhardt's Wisconsin Central were chosen to have all the BR Railfteight businesses - apart from Freighliner - after an interview at the British Embassy in New York ... allegedly.
So many promises of expansion by Ed, so much better once all the nationalised-era managers 'managing decline' have gone. The 200 66s were all for extra traffic, all the existing locos would still be needed. Freight traffic tonne-miles would be doubled.

Who would have guessed that it would all turn to this? Hmmm ...
Yep, he didn't understand the British freight business, thinking he could reproduce the US model and was eventually forced to resign from Wisconsin Central. It was the (obnoxious) Brian Mawhinney, onetime Minister of Transport, who did the deal - having previously split the rail freight businees into three pointless competing companies.

Burkhardt's track record in the privatisation of New Zealand and Estonian railways was poor too - they are back now in state hands. Looking him up I see he is still with us at 88.
 

D1511

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DB also have the new thrice weekly Mossend to Masbrough FD to Felixstowe , it’s been full several times recently and is delightful bright red 66 with yellow orange green and red boxes

== Doublepost prevention - post automatically merged: ==
I saw it on the Edinburgh Sub at lunchtime today.
6M51 does not always run .
Okay, so very few freight services always run, but 6M51 is pretty solid. Last Monday was the only day it hasn't run this month,
 

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