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Press Release DB Cargo Moscow April 21, "TransRussia-2016"

DB Cargo consolidates assets to expand presence on Russian market and in Customs Union countries.

Deutsche Bahn (DB), Germany’s railway company, has released its rebranded DB Cargo in Moscow. Created in March 2016 as part of DB Schenker Rail carrier, DB Cargo has been presented to coincide with TransRussia, Eastern Europe’s largest transport forum.

‘Business people do not know when the sanctions will be lifted, but we are prepared to work in Russia and present our ideas and concepts, provide better quality and better prices’, says Uwe Leuschner, CEO of DB Cargo Russija. ‘It is our long-term policy. When a delegation of German business people and I recently met President Putin, he assured us that Russia will be improving conditions for foreign investors and guarantee security of development of their businesses.’

Uwe Leuschner knows Russia very well; he started working here in the 1990s and headed a number of major enterprises. His coming to DB Cargo Russija proves that the company has serious intentions on the Russian market. Following the rebranding of DB Schenker Rail, a division of DB logistic group, its subsidiary in Russia – Railion Russija Services – was also renamed, and since April 14, 2016, it has been called DB Cargo Russija. The company has been developing logistic solutions in line with DB Cargo standards taking into account specific features of the Russian market for over 20 years. DB Schenker Russia, a logistics company, is also present on the Russian market, having branches around the country and a network of 25 marketing terminals working according to German standards.

‘DB Cargo was created to consolidate cargo, transportation and logistics specialists, organize shipment and service. It reflects the restructuring of our business’, emphasizes Uwe Leuschner speaking at the release of DB Cargo brand during TransRussia-2016, the largest transport exhibition in Europe. Today the company offers to the customers a product which they can integrate into their businesses as ready-made expertise.

‘The profit margin is very small now’, points out Matthias Reichel, CFO, DB Cargo’s Member of the Board. We must reconsider our business in order to restore the profitability and provide our customers with new opportunities thanks to the efficiency of our service. The customers want to know how flexible we are, and the satisfaction of the customers directly affects financial performance’.

Dispatching 4785 cargo trains per day, DG Cargo is certain that Russia does not use railway technologies to the full extent. In collaboration with Russian Railways (RZD) JSC and UTLC DB Schenker launched cargo expresses from Chongqing in China to Duisburg in Germany. A train covers 10,000 km in 9 days, and in 2015 its regularity virtually doubled: form 285 to 480 trains. Today DB Cargo-operated trains from China depart every day, and their quantity will be growing. ‘There is no competition with sea transport, rather with air transport. And it is the foundation of the market position and success of the company, where the best European specialists work’, underlines DB Cargo.

Although Russia still sees over 80% cargos transported by road, even to far distances, Matthias Reichel is sure that Russia is ready to accept and employ green transport technologies. ‘But in order to achieve this, digital solutions are needed. Anything can be bought online today.

DB Schenker Russia headed by Aivars Taurins is implementing this concept through 25 terminals from St. Petersburg to Krasnoyarsk. A logistic operator can deliver any product across Russia according to a balanced schedule.

‘We have offered air service so as to reach Vladivostok within similar to road service time limits in the Central Region,’ said Taurins. ‘To meet the customer’s needs we extend the system of intra-Russian transportation to the Customs Union, first of all, to Kazakhstan and Belarus. Our company is customer-oriented and responds to the needs of cargo shipper with our solutions. We integrate our information systems on the same platform as the customers, all our logistic services are for the customers.

Answering the question whether such a political situation could emerge that could force DB Cargo to leave the Russian market, Hans-Georg Werner, CEO of DB Cargo East Region, offered a metaphor: ‘Any union, any marriage goes through good times and bad times. It is not difficult to stay together in good times, but it is praiseworthy to do so in bad times‘.