DB Schenker Rail Streamlines Management Structure

Mainz - DB Schenker Rail, Deutsche Bahn AG’s European rail freight transport operator, announced that it will streamline its management and organizational structure effective January 1, 2010. The implementation of these measures will take place pending the required approvals from the Supervisory Board and the co-determination bodies.

“The current economic situation requires a lean organization with clearer, explicitly defined responsibilities for business results, and short decision-making paths. We must restore operational and economic balance to DB Schenker Rail, especially in Germany,” said Dr. Alexander Hedderich, CEO of DB Schenker Rail. “Our company’s numerous activities in Europe have to be linked together to form a real network in order to generate benefits for our customers and foster business success. A streamlined management structure and the clear assignment of responsibility for results within our company are the basis for achieving these goals.”

DB Schenker Rail’s organizational concept should remain basically unchanged, although it will be simplified at the business unit level. Plans call for the business unit to continue to be organized into three regional business segments: Germany/Region Central, Region West and Region East, as well as four business unit functions managed on a pan-European basis: Sales, Operations, Human Resources and Finance. The new dimension will be that the previous Automotive and Intermodal Business Segments will be integrated into the European and German sales organization. Development of a separate combined transport (CT) railroad at Intermodal will be discontinued. The individual companies assigned to the regions will be responsible for their profit and loss.

Parallel to the structural modifications, there will also be changes in the management of the business unit and the business segments. Alexander Hedderich, Head of the business unit, will also be placed in charge of the Germany/Region Central Business Segment. Hans-Georg Werner, the current Head of Intermodal, will take over as Head of Region East. Region West will continue to be managed by Keith Heller. Karsten Sachsenröder will continue as Head of Sales Europe and Region Central, and will also be temporarily responsible for Intermodal activities. Axel Marschall will continue as Head of Automotive Europe.

Christian Kuhn will be responsible for Operations at the European Management Board level as well as in the Germany/Region Central Business Segment. Kuhn is returning to DB Schenker Rail, although he will continue as a member of the IQ Martrade Holding and Management advisory board, as well as a member of the Board of Directors of their Indian subsidiary company, Tata Martrade International Logistics Ltd. Furthermore Martrade and DB Schenker will continue and intensify their already established project-orientated cooperation. “Based on Christian Kuhn’s extensive experience, we are entrusting him with the key tasks of stabilizing operations in Germany and shaping the European operations network,” said Alexander Hedderich.

Talks are currently underway with Dr. Christoph Wolff regarding new responsibilities at DB Schenker Rail or within the DB Group.

Edmund Schlummer, who was previously Head of Region Central, has decided to leave the company at the end of the year. “We would like to express our deep thanks to Edmund Schlummer for making a major contribution towards the further development of our business in Europe,” said Hedderich.