INHALT

Commission Decision (EU) 2025/1167 of 29 November 2024 on State aid SA.50952 (2022/C) (ex 2018/FC) implemented by Germany for DB Cargo (notified under document C(2024) 8610)

COMMISSION DECISION (EU) 2025/1167
of 29 November 2024
on State aid SA.50952 (2022/C) (ex 2018/FC) implemented by Germany for DB Cargo
(notified under document C(2024) 8610)
(Only the English text is authentic)
(Text with EEA relevance)
1.
PROCEDURE
2.
DETAILED DESCRIPTION OF THE MEASURES
2.1.
DB Cargo: corporate history, structure and corporate rules
Figure 1
DB group business organisation
2.2.
Activities of DB Cargo and position on various service markets
Figure 2
DB Cargo market share in total in Member States with DB Cargo activity
Table 2
Position of DB Cargo on rail freight markets in various Member States
Table 3
Position DB Cargo per activity in various Member States
2.3.
The measures subject to the investigation
2.3.1.
Compensation of annual losses of DB Cargo under the profit and loss transfer agreement (‘Measure 1’)
Figure 3
Risks and opportunities mid-term plan for 2021-2025
Figure 4
Concluding assessment of SWL scenarios
Figure 5
DB Cargo indicators mid-term plan 2020 by business segment
Figure 6
Mid-term plan 2020 SWL State support
Figure 7
Mid-term plan 2021 SWL State support
Figure 8
Mid-term plan 2022 SWL State support
2.3.2.
Pricing of intra-group services (‘Measure 2’)
2.3.3.
Advantageous financing conditions of loans by DB Treasury (‘Measure 3’)
2.3.4.
Partial coverage by BEV of the remuneration of civil servants employed by DB Cargo (‘Measure 4’)
2.4.
Grounds for initiating the procedure
3.
COMMENTS FROM INTERESTED PARTIES
3.1.
ERFA
3.2.
The complainant
4.
COMMENTS FROM GERMANY
4.1.
General preliminary observations
4.1.1.
Observations on the measures concerned
4.1.1.1. Compensation of annual losses of DB Cargo under the profit and loss transfer agreement (Measure 1)
4.1.1.2. Pricing of intra-group services (‘Measure 2’)
4.1.1.3. Advantageous financing conditions of loans by DB Treasury (‘Measure 3’)
4.1.1.4. Partial coverage by BEV of the remuneration of civil servants employed by DB Cargo (‘Measure 4’)
4.1.1.5. Measures concerned as
existing aid
4.1.2.
Observations on the comments from interested parties
4.1.2.1. Germany’s observations on ERFA’s comments
4.1.2.2. Germany’s observation on the complainant’s comments
4.1.3.
Compatibility with the internal market
4.1.4.
The restructuring plan of DB Cargo
4.1.4.1. Description of the restructuring plan and supporting restructuring aid
4.1.4.1.1. DB Cargo’s Restructuring Plan
4.1.4.1.1.1. Overview of DB Cargo’s Transformation Plan
4.1.4.1.1.2. DB Cargo’s Restructuring Plan measures
4.1.4.1.1.3. Restructuring Plan measures in the single wagon segment
4.1.4.1.1.3.1. Restructuring Plan measure 1: Single Wagon segment network optimisation through design review
4.1.4.1.1.3.2. Restructuring Plan measure 2: Single Wagon segment overall production optimisation measures
4.1.4.1.1.3.3. Restructuring Plan measure 3: Single Wagon segment quality improvement and base price adjustment measures
4.1.4.1.1.3.4. Effects of the Single Wagon segment measures of the Restructuring Plan on DB Cargo’s EBIT projections
4.1.4.1.1.4. Restructuring Plan measures in the Block Train segment
4.1.4.1.1.4.1. Restructuring Plan measure 4: Block Train segment logistics solutions and portfolio optimisation
4.1.4.1.1.4.2. Restructuring Plan measure 5: Block Train segment production robustness increase
4.1.4.1.1.4.3. Restructuring Plan measure 6: Block Train segment quality improvements and related base price adjustments
4.1.4.1.1.4.4. Effects of Block Train segment measures of the Restructuring Plan on DB Cargo’s EBIT projections
4.1.4.1.1.5. Restructuring Plan measures in the Combined Transport segment
4.1.4.1.1.5.1. Restructuring Plan measure 7: Maritime Combined Transport sub-segment change of production
4.1.4.1.1.5.2. Restructuring Plan measure 8: Maritime Combined Transport sub-segment network redesign
4.1.4.1.1.5.3. Restructuring Plan measure 9: Maritime Combined Transport sub-segment terminals integration
4.1.4.1.1.5.4. Restructuring Plan measure 10: Maritime Combined Transport sub-segment portfolio optimisation
4.1.4.1.1.5.5. Restructuring Plan measure 11: Maritime Combined Transport sub-segment partnership options evaluation
4.1.4.1.1.5.6. Restructuring Plan measure 12: Continental Combined Transport sub-segment re-dimensioning of Kombiverkehr
4.1.4.1.1.5.7. Restructuring Plan measure 13: Continental Combined Transport sub-segment production change
4.1.4.1.1.5.8. Restructuring Plan measure 14: Carrier Sales sub-segment portfolio optimisation
4.1.4.1.1.5.9. Effects of Combined Transport segment measures of the Restructuring Plan on DB Cargo’s EBIT projections
4.1.4.1.1.6. Restructuring Plan measures in DB Cargo’s European Subsidiaries
4.1.4.1.1.6.1. Restructuring Plan measure 15: European Subsidiaries portfolio optimisation
4.1.4.1.1.6.2. Restructuring Plan measure 16: European Subsidiaries cost reductions
4.1.4.1.1.6.3. Restructuring Plan measure 17: European Subsidiaries’ operational efficiency
4.1.4.1.1.6.4. Effects of DB Cargo’s European Subsidiaries measures of the Restructuring Plan on DB Cargo’s EBIT projections
4.1.4.1.1.7. Restructuring Plan measures in DB Cargo’s administration
4.1.4.1.1.7.1. Restructuring Plan measure 18: Administration’s IT standardisation
4.1.4.1.1.7.2. Restructuring Plan measure 19: Administration’s office space reduction
4.1.4.1.1.7.3. Restructuring Plan measure 20: Administration’s marketing and strategic activities with DB AG reduction
4.1.4.1.1.7.4. Restructuring Plan measure 21: Administration’s manual finance processes digitalisation and automation
4.1.4.1.1.7.5. Restructuring Plan measure 22: Administration’s offer management and service design departments rightsizing
4.1.4.1.1.7.6. Restructuring Plan measure 23: Administration’s structure and domestic sales subsidiaries’ harmonisation
4.1.4.1.1.7.7. Restructuring Plan measure 24: Administration’s management structure rightsizing
4.1.4.1.1.7.8. Restructuring Plan measure 25: Administration’s other costs reduction
4.1.4.1.1.7.9. Effects of DB Cargo’s Administration measures of the Restructuring Plan on DB Cargo’s EBIT projections
4.1.4.1.1.8. Restructuring Plan measures in DB Cargo’s production-related and Control Tower overhead
4.1.4.1.1.8.1. Restructuring Plan measure 26: Production-related and Control Tower’s integration of asset steering and personnel scheduling
4.1.4.1.1.8.2. Restructuring Plan measure 27: Production-related and Control Tower’s detailed planning reduction
4.1.4.1.1.8.3. Restructuring Plan measure 28: Production-related and Control Tower’s crew dispatching functions consolidation
4.1.4.1.1.8.4. Restructuring Plan measure 29: Production-related and Control Tower’s long-distance shift planning process optimisation
4.1.4.1.1.8.5. Restructuring Plan measure 30: Production-related and Control Tower’s maintenance digitisation
4.1.4.1.1.8.6. Restructuring Plan measure 31: Production-related and Control Tower’s efficiency improvement
4.1.4.1.1.9. Restructuring Plan measures in response to additional materialised risks
4.1.4.1.1.9.1. Restructuring Plan measure 32: Substantial headcount reduction in response to negative volume trends
4.1.4.1.1.9.2. Restructuring Plan measure 33: Factor cost reduction in response to negative volume trends
4.1.4.1.1.9.3. Restructuring Plan measure 34: One-off effects on net income in 2024 in response to negative volume trends
4.1.4.1.1.9.4. Restructuring Plan measure 35: DB Cargo maintenance productive increase
4.1.4.1.1.9.5. Restructuring Plan measure 36: DB Group internal services and traction energy costs reduction
4.1.4.1.1.9.6. Restructuring Plan measure 37: Depreciation and investment reduction
4.1.4.1.1.9.7. Restructuring Plan measure 38: Sale and lease back of locomotives
4.1.4.1.1.9.8. Restructuring Plan measure 39: Locomotives purchase-to-lease conversion
4.1.4.1.1.9.9. Restructuring Plan measure 40: Improvements in working capital
4.1.4.1.1.9.10. Restructuring Plan measure 41: Single wagon segment price increases
4.1.4.1.1.10. Overall effect of the Restructuring Plan measures on DB Cargo’s EBIT projections
4.1.4.2. Financing of the restructuring plan
4.1.4.2.1. Restructuring costs
4.1.4.2.2. Sources of financing of the restructuring measures
4.1.4.2.2.1. Restructuring aid
4.1.4.2.2.2. Own contribution from the beneficiary
4.1.4.2.3. Financial projections in baseline and pessimistic scenario
4.1.4.2.3.1. Baseline scenario financials
4.1.4.2.3.2. Pessimistic scenario financials
4.1.5.
Measures limiting distortions of competition and trade
4.1.5.1. General commitments on commercial policy
4.1.5.1.1. Prohibition of acquisition
4.1.5.1.2. Sale of shares
4.1.5.2. Measures to strengthen competition (services purchase)
4.1.5.3. Output volume cap
4.1.5.4. Sale of locomotives
4.1.5.5. General and final provisions applicable to the commitments
4.1.5.6. State of advancement concerning the sale of shares and locomotives
5.
ASSESSMENT OF THE MEASURES
5.1.
Existence of State aid
5.1.1.
Engagement of the State resources
5.1.2.
Imputability to the State
5.1.2.1. Compensation of annual losses of DB Cargo under the profit and loss transfer agreement (‘Measure 1’)
5.1.2.2. Pricing of intra-group services (‘Measure 2’) and advantageous financing conditions of loans by DB Treasury (‘Measure 3’)
5.1.2.3. Partial coverage by BEV of the remuneration of civil servants employed by DB Cargo (‘Measure 4’)
5.1.3.
Selective advantage
5.1.3.1. Compensation of annual losses of DB Cargo under the profit and loss transfer agreement (‘Measure 1’)
5.1.3.1.1. Signing the PLTA in 2012
5.1.3.1.2. Period until end-2016
5.1.3.1.3. Period as from 2020
5.1.3.2. Partial coverage by BEV of the remuneration of civil servants employed by DB Cargo (‘Measure 4’)
5.1.4.
Distortion of competition and effect on trade
5.1.5.
Conclusion on the existence of aid
5.2.
New aid
5.3.
Lawfulness of the aid
5.4.
Compatibility of the aid with the internal market
5.4.1.
Eligibility
5.4.2.
The aid facilitates the development of certain economic activities or certain economic areas
5.4.2.1. Prevention of social hardship or market failure contributing to the development of an economic activity or an economic area
5.4.2.2. The aid avoids the disruption of an important service
5.4.2.3. Restructuring plan and return to long-term viability
5.4.2.3.1. Assessment of the credibility of the Restructuring Plan to address the causes of DB Cargo’s financial difficulties
5.4.2.3.2. Assessment of the credibility of the Restructuring Plan’s assumptions
5.4.2.3.3. Assessment of the credibility of the beneficiary’s return to viability
5.4.3.
Positive effects of the aid on the development of economic activities or of economic areas outweigh the negative effects, in terms of distortions of competition and adverse effects on trade
5.4.3.1. Necessity of the aid and incentive effect
5.4.3.2. Appropriateness
5.4.3.3. Proportionality of the aid and burden-sharing
5.4.3.3.1. Own contribution
5.4.3.3.1.1. Mezzanine Capital (Subordinated Convertible Loans of EUR 842 million) and Credit Lines (EUR 325 million and EUR 434 million)
Figure 9
Corporate bond yield curve for different maturities and ratings
5.4.3.3.1.2. Proceeds from asset divestments (EUR [460-560] million)
5.4.3.3.1.3. Factoring of receivables by HSBC (EUR [100-140] million)
5.4.3.3.1.4. Transfer and coverage of staff wage and severance costs (EUR [100-140] million)
5.4.3.3.1.5. Conclusion
5.4.3.3.2. Burden sharing
5.4.3.3.3. Conclusion
5.4.3.4. ‘One-time, last time’ principle and limitation of distortions of competition
5.4.3.4.1.1. ‘One-time, last time’ principle
5.4.3.4.1.2. Limitation of distortions of competition
Figure 10
Development of revenues on the German rail market in EUR billion (rail freight in grey/top of the columns)
Figure 11
Rail freight market in Germany in 2023
5.4.3.4.1.2.1. Structural measures
5.4.3.4.1.2.2. Behavioural measures
5.4.3.5. Aid granted to DB Cargo or its subsidiaries during the restructuring period.
5.4.3.6. Transparency
5.4.4.
Balancing positive and negative effects
6.
CONCLUSION
Article 1
Article 2
Article 3
Article 4
Article 5