2017 Integrated Report – Departure into a new era

Events 2017

Expansion of the global network

Opening of new logistics hubs

  • A new logistics hub in Grenoble/France specializes in the needs of nearby semiconductor manufacturers and offers the highest standards for the storage of computer chips.
  • The enlargement of the logistics facility in Strečno/­Slovakia to 8,000 m² improves the offer for transport and warehouse logistics for car customers.
  • A further area of 10,500 m² is rented in the logistics hub in Großbeeren. The new property serves as a warehouse for various customers from the consumer goods and industrial goods sectors.
  • Together with Duisburger Hafen AG, a logistics hub was set up in the Port of Duisburg. From 2018, DB Schenker will be organizing supply to plants abroad for the
    Mercedes-Benz Vans business unit’s global production network.
  • In Bologna, a new 11,000 m² terminal has been built and certified under the Building Research Establishment Environmental Assessment Method (BREEAM). It is equipped with LED lighting no. 50, state-of-the-art insulation technology and a rainwater recycling system. The new logistics hub in Venlo, opened in July, was also BREEAM-certified.
  • Graz is now home to the most advanced goods hub south of the Alps, with about 30,000 m² of usable space. Along with the most advanced IT solutions and up-­­­to-date safety standards, the entire logistics hub is illuminated with daylight-sensitive LED lamps.
  • DB Schenker Australia is opening one of its largest contract logistics hubs for several customers in Hoxton Park. This logistics hub is a facility for entertainment electronics, fast-moving consumer goods, and fashion and retail customers.
  • In Auckland/New Zealand, a new contract logistics hub has been developed with the most advanced environmental technology (a combination of daylight and LED lighting no. 50,solar system no. 30, recycling program) with 7,000 m² of warehouse space and 10,000 pallet spaces.
  • DB Schenker and Jinbei Automotive opened a highly modern logistics hub in December. The Shenyang Logistics Center, with 42,000 m² of space, is one of the world’s largest DB Schenker logistics hubs and is available for use by a number of customers.
  • In Madrid,DB Schenker is opening its largest national logistics hub in Spain with 60,000 m² of space for international land transport as well as air and ocean freight. It is equipped with a photovoltaic system no. 50 that generates most of the electricity needed. The climate control system also has a heat recovery system.

Investments

  • In February 2017, DB Schenker invested in uShip, Inc. of Austin, Texas/USA, by way of a financing round. The investment follows a cooperative agreement with uShip in place since May 2016. The online platform of uShip provides a digital addition to DB Schenker’s established business model.
  • DB Schenker is taking over its New Zealand partner com­­­pany SB Global Logistics after more than 20 years of cooperation. With this acquisition, DB Schenker is ex­tending its presence to the southern islands of New Zealand, improving customer proximity and expanding into a nationwide company. As part of the acquisition, DB Schenker will take on more than 50 employees and an ultramodern logistics hub in Christchurch/New Zealand, opened in 2014.

Progress in implementation of PRIMUS

A large number of initiatives were implemented in the year under review that move DB Schenker forward on the way to becoming the sector’s leader, its PRIMUS. Strong results have already been achieved in the categories of growth, efficiency and culture:

  • Growth: the annual growth target of 1 billion was surpassed and DB Schenker once again set a new annual revenue record in contract logistics.
  • Efficiency: with the successful establishment of the Global Business Service Centers in Bucharest and Manila, the conditions were created for systematic integration of the operating business.
  • Culture: DB Schenker has begun deploying 133 top managers as catalysts for accelerated change in the organization. This clears the way for a change in corporate culture that will put DB Schenker at the top of the industry.

Use of megatrucks

We contribute toward innovations in road freight traffic in general. But it is also important to DB Group that, in the concrete implementation of such innovations, any additional competitive disadvantages for freight transport by rail are avoided as far as possible. Thus, DB Schenker participated in the Federal Government’s field test on megatrucks with four vehicles on only a few select routes in Germany used to transport time-critical general cargo shipments that are not suitable for rail transport. There is therefore no danger of a shift from rail to road transport in this case. There are currently no specific plans to expand the megatruck fleet. 

Innovative environmental social commitment #Climate protection

  • DB Schenker has further promoted the expansion of logistics locations into Eco Warehouses no. 112 worldwide. All Eco Warehouses have modern LED lighting no. 50. This enables potential energy savings of up to 30% compared to conventional lighting.
  • DB Schenker has acquired from Daimler subsidiary Charterway three Fuso eCanter fully electric light trucks and is testing them under real production conditions in city logistics. Among other things, one of the three vehicles will be used for the delivery and pickup of general cargo shipments in Berlin’s city center.
  • With the ROLA (“rolling highway”), DB Schenker in Austria is connecting that country with its Slovenian and Italian neighbors. Through the Brenner Pass alone, 6,000 trucks a month are loaded and over 2,000 t CO₂ are saved every year.
  • DB Schenker as an exclusive service provider signed a 4 +2-year agreement with Louis Vuitton after an im­pressive environmental performance in a competition with top suppliers, and has thus taken on the role of driving the luxury manufacturer’s climate goals in global transport.
  • DB Schenker along with its preferred carrier, Hapag Lloyd, gained its first customer for voluntary conversion from heavy oil to low-sulfur marine diesel in unregulated ports. L’Oreal, as a premium customer, is paying a surcharge on all containers loaded in ports without sulfur emissions limits in order to finance low-sulfur fuel.

Legal issues

  • DB Group is pursuing compensation for damages against the airlines that were part of the so-called air freight cartel, which, according to the findings of various competition authorities around the world, agreed on kerosene and security surcharges, among other things, from 1999 to at least 2006 at the expense of freight forwarders such as DB Schenker. Claims for damages were entered against several airlines in Germany and the USA in 2014. Out-of-court settlements in the USA have been concluded with all remaining airlines in the lawsuit in the year under review. The US proceedings have thus ended. In addition, out-of-court settlements relating to the proceedings in Germany were concluded with three airlines in the year under review. Settlement negotiations are being conducted with additional airlines to settle the pending proceeding in Germany.
  • In December 2017, DB Group filed a lawsuit with the Munich Regional Court against the corporate groups DAF, Daimler, Iveco, MAN and Volvo/Renault, which participated in the truck cartel. DB Group is asserting its claims for damages in conjunction with the German Armed Forces. Besides the German Armed Forces, over 40 companies from all sectors of the German economy have assigned their claims to DB Group. In this lawsuit, DB Group is asserting combined damage claims for illicit price-fixing on about 35,000 trucks affected by the cartel, with a purchase volume of well over 2 billion. DB Schenker was impacted with respect to several thousand trucks. The amount of the damage is currently being investigated. The EU Commission had found that the truck manufacturers participating in the cartel had entered into prohibited agreements on gross list prices between 1997 and 2011. There were also agreements to delay the introduction of new emissions reduction technologies and to pass their costs onto customers. The cartel was hit with record fines totaling 3.8 billion.