Deutsche Bahn denies DB Schenker US closure

Berlin, Germany: Deutsche Bahn moved quickly to deny that it is planning to withdraw from the US following press reports that it could shut down transport logistics and subsidiary DB Schenker in the US.

Reports this week suggested the operator was evaluating whether to close DB Schenker Logistics and withdraw from the US.

But yesterday, a DB Schenker spokesman said there were no plans to withdraw from the US, claiming the firm was confident about the future of its air and ocean freight, contract logistics and ground operations in North America.

Overall, its business in the US was “significantly” profitable last year, the company says. However, management would decide the fate of the underperforming domestic transport and logistics business unit over the next two months.  Underperformance was blamed on a fleet of aircraft acquired as part of DB’s purchase of BAX.  DB Schenker had reduced its fleet of aircraft from 40 to 20 over the past few years, the spokesman said, but would explore other ways to “adapt the unit to address market realities”, such as escalating fuel costs and the economic crisis.

“We have a number of alternatives available, including improving and restructuring the operation and/or partnering with other providers.”

Schenker – a wholly owned subsidiary of Deutsche Bahn that has operated in the US since the 1940s – is one of the most visible logistics brands in the US.  It is also one of the few places in North America that Deutsche Bahn has a visible presence. Worldwide, Schenker operates in more than 100 countries.

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