Deutsche Bahn launches turnaround programme to improve operations and profitability by 2027
Posted: 23 September 2024 | Global Railway Review | No comments yet
Deutsche Bahn has unveiled a comprehensive turnaround programme aimed at enhancing infrastructure, rail operations and profitability by 2027, with specific targets to reduce delays and improve punctuality.
Credit: Deutsche Bahn
Deutsche Bahn‘s (DB) Management Board has announced that it has presented an extensive plan aimed at transforming the company by 2027. This programme, focused on infrastructure, rail operations and profitability, seeks to address long-standing challenges and secure DB’s financial and operational future. Key goals include a 20% reduction in infrastructure-related delays, boosting long-distance punctuality to 75-80% and reaching an EBIT target of €2 billion.
Richard Lutz, Deutsche Bahn’s CEO, said: “We will simultaneously restructure our infrastructure, rail operations and profitability. That will give us a stable foundation for future growth in line with our Strong Rail strategy.”
Werner Gatzer, Chairman of the Supervisory Board, acknowledged that the current situation required a comprehensive strategy, stating, “We were clear that the DB Group needed to be put back on track, with a turnaround in infrastructure and operations and a recovery in financial health. The Supervisory Board expects the details of the programme to be fleshed out in the upcoming budgeting and medium-term planning process and presented to us at our December meeting.”
The programme’s infrastructure initiatives include the overhaul of 1,500km of rail lines, replacing faulty equipment and reducing speed restrictions, with a target to modernise 100 stations annually. In operations, DB aims to introduce “construction cycles” to better integrate maintenance work into timetables, reducing disruptions.
On the financial side, Deutsche Bahn plans to cut personnel expenses and increase EBIT while maintaining job security through measures such as natural turnover and phased retirements. The company also plans to digitise operations and enhance rolling stock management to improve punctuality and reliability.
The plan is integral to achieving Germany’s long-term transport goals, including doubling rail passenger volumes and expanding freight transport’s market share. With growing demand for climate-friendly mobility, DB’s programme is positioned as a crucial step in aligning its services with both market expectations and the government’s environmental objectives.
