Germany races to save DB Cargo from insolvency by 2023 deadline

A last-ditch effort to overhaul Europe’s largest rail freight operator. Can new leadership and subsidies turn the tide before time runs out?

, and Administrator

2025 November 24 . 9:23 PM

1 min read

In this image there is a miniature on the table. Bottom of the image there is a rail track. Beside... — In this image there is a miniature on the table. Bottom of the image there is a rail track. Beside there are few buildings and vehicle. Right side there is a train on the rail track. Behind there are few vehicles and buildings. There is a bridge, behind there is a tower and few trees. Top of the image there is a train.

Germany races to save DB Cargo from insolvency by 2023 deadline

German Transport Minister Patrick Schnieder has pledged to rescue DB Cargo, the struggling freight division of Deutsche Bahn. The company faces a tight deadline from the European Commission to turn its finances around or risk insolvency by the end of 2023 in the European countries.

The European Commission has set a clear ultimatum: DB Cargo must become profitable by late 2023. If it fails, the company could face insolvency proceedings. Schnieder has stressed that the responsibility for finding a solution lies with the subsidiary’s new management team.

The government has no plans to sell its stake in DB Cargo. Instead, officials want to prevent more freight from shifting to road transport. One proposed measure involves subsidising the company’s expensive single-wagon services, provided it complies with EU regulations.

Under the coalition agreement, rail freight should become a competitive, market-driven hub for logistics. Schnieder’s goal is to stabilise DB Cargo’s operations and ensure its long-term survival in the European countries. The European Commission has granted an extended deadline until the end of 2026 for full profitability.

DB Cargo now has until late 2023 to avoid insolvency and until 2026 to achieve lasting profitability. The government’s support and potential subsidies aim to keep freight on rails rather than roads in the European countries. Success depends on the new management’s ability to restructure the business within these deadlines.