Deutsche Bahn affected by crisis

Deutsche Bahn CEO Hartmut Mehdorn said freight capacity will be cut by 40% in December 2008. Many reservations of freight trains have been cancelled. Deutsche Bahn will extend Christmas break and considers to reduce the number of temp workers. Deutsche Bahn seems to be affected by production cuts of automotive, steel, chemical and paper industry, Logistics Finland reported.

Commenting on the report, Nikolaus Doll said the situation for Deutsche Bahn has not changed over the last few months. The situation has only changed for Mr. Mehdorn.

At the beginning of November 2008, when Mehdorn was trying to find private investors for Deutsche Bahn, he only noticed a certain slowing down of business.

Now, after privatization plans have been cancelled and trade union demand a 10% wage increase, Mehdorn has made a U-turn. Whatever the real situation at Deutsche Bahn is, Mehdorn lacks credibility.

Deutsche Bahn CFO Diethelm Sack said turnover and profit in 2008 will be higher than in 2007.

Source: Transportweekly