Latest Rail News

18.10.16

DB Cargo to cut up to 900 jobs

Up to 900 jobs could be cut at rail freight firm DB Cargo as it struggles to cope with a declining freight sector.

In a statement today, the company said it was consulting on proposals including cutting 893 jobs, downsizing its locomotive and wagon fleet, and revising the number and locations of operational sites.

Recent figures from the ORR show freight moved is down by 8.4% from last year and freight lifted is down 15.3%, which it largely attributed to a decline in coal production.

Hans-Georg Werner, CEO of DB Cargo UK, said: “Responsible and successful businesses must evolve and reshape as their markets change and sometimes this means making tough decisions.

“Whilst this is a difficult time for all of us at DB Cargo UK, reshaping the company will enable us to build a business for the future and protect the majority of jobs. We are fully committed to supporting colleagues who may be at risk of redundancy.”

The Doncaster-based company, which changed its name from DB Schenker Rail in March, cut 234 jobs last year, again citing the decline in coal demand.

Mick Cash, general secretary of RMT, said: “RMT’s executive will be meeting this afternoon to consider our response but it is imperative right now that the government intervene to save skilled jobs in the rail freight industry which are being butchered before our eyes due to a lack of action to protect steel, coal and the rest of our manufacturing base.”

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Comments

Tothehills   19/10/2016 at 09:14

Unfortunately a fairly predictable outcome given the decline bulk transport of coal, the same issue is happening in the US given the switch to gas fired power stations. The interesting crystal ball point is: with the desire to de-carbonise transport (whole country) will the railways be able to re-capture a market in long distance transfer of freight to local distribution point (based on containers). This is predicated on the issue that electric lorries are not really suitable for long haul. This is unlikely in the short term (15 years) There is a bigger issue in this that our electrical distribution network really is insufficient for this role; if we stay with the current infrastructure we can heat and light our homes or charge our cars but not both! So the silver lining is if we expand (by at least 100%) the grid distribution we will need to move lots of copper and steel around.

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