Key facts
- DB Cargo UK, a British rail freight company owned by Deutsche Bahn, has begun a sale process for its operations.
- The company was formed in 1995 through the acquisition and merger of five former British Rail freight companies.
- It once controlled 90% of the UK rail freight market.
- Deutsche Bahn acquired the company in 2007 for £309 million.
- DB Cargo UK has experienced a downturn in coal and steel traffic, leading to job cuts and financial losses.
DB Cargo UK, the British rail freight arm of German railway giant Deutsche Bahn, has entered into a sale process for its operations. The company, headquartered in Doncaster, England, has faced significant challenges in recent years.
Established in 1995 by Wisconsin Central, DB Cargo UK was formed through the successful acquisition and merger of five of the six freight companies sold during the privatization of British Rail. By March 1997, it had become the dominant player in the UK rail freight market, controlling 90% of the sector and operating a substantial fleet of locomotives and wagons with thousands of employees.
Deutsche Bahn acquired the company in November 2007 for £309 million. It was rebranded as DB Schenker in 2009 and later as DB Cargo UK in March 2016. The company has seen a sharp downturn in traffic, particularly in coal and steel, which led to plans to cut 893 jobs in October 2016. In the subsequent financial year, DB Cargo UK reported a loss after tax of £57 million against a turnover of £325 million.