2017 Integrated Report – Departure into a new era

Markets and strategy

The German regional rail passenger transport market will continue to grow slightly over the next few years and thus remains one of the most interesting in Europe. Increasing regionalization funds will create stability for the next 15 years or so. DB Regional intends to benefit from this positive market environment as the largest provider.

In recent years, numerous competitors have established themselves on the market, which has led to a continuous decline in DB Regional’s market share. In the national bus market, competition in the regional bus market continues to increase, both as a result of tenders and of licensing auctions with purely commercial bids. In urban transport, bus services are often awarded to local municipal companies in in-house awards.

Innovative forms of mobility are increasingly being de­­vel­­oped in the local transport market and result in changes to the market. In the future, car sharing, ride sharing and on-demand concepts will become more established in the German transport market. DB Regional will flexibly respond to the changing mobility requirements of its customers and increasingly act as a provider of holistic mobility concepts in local transport.

  • ECONOMIC dimension: We want to continuously im­­prove quality, thus increasing customer satisfaction, and to defend our market position without sacrificing profitability and increase our innovative strength. To this end, we have launched Regional Railway of the Future. For us, quality leadership means arriving on time and without any issues. With this in mind, we continuously optimize our processes and quality awareness. We are redesigning our customer interface using digital products such as the DBRouteAgent (DB Streckenagent) and seat reservations. Working together with the public transport authorities, we are introducing WIFI in local transport. At the same time, competitive costs will continue to be an important criterion for success in future in a market that depends heavily on offer prices. We are systematically increasing our economies of scale along the entire value-added chain and optimizing our cross-divisional functions. We are generating growth in the maintenance market segment. In this area, we use our size and experience to offer comprehensive maintenance services to third parties. We also want to attack competition networks in order to recover lost traffic. For this purpose, we have further professionalized our tender management, bundled relevant competencies in a CC organization and worked intensively on our cost structures. Bus services still have to prove themselves in an environment that is becoming increasingly competitive. Cross-departmental improvement management ensures optimized processes and systems. By centralizing fleet management and IT functions, we realize cost advantages while at the same time improving performance. We are also continuing to work on the streamlining and standardization of our cross-­divisional functions. We are reorganizing our regional organizational structure in the bus sector and expanding our branches to generate competitive and cost advantages. In the future, the control center and maintenance will be established as separate areas under the regional production managers.
  • SOCIAL dimension: Satisfied and motivated em­­ploy­­ees are essential for success in the market. One im­port­­ant key to this is to actively involve employees in the continuous improvement of DB Regional and to support them in the ongoing change processes. These efforts include conducting employee surveys and organizing follow-up workshops to derive actions together. Our “Train crew initiative” addressed the findings from the past employee survey and developed appropriate solutions. Measures have been developed in “onboarding initiatives” to help new employees get started.
  • ENVIRONMENTAL dimension: We intend to further de­­velop our strengths as a structurally environmentally friendly mode of transport, especially compared to car traffic. With this in mind, driver assistance systems for energy-saving driving are currently being rolled out. Diesel buses with the highest emissions standard Euro VI are used within the scope of our continuous fleet re­­newal. The continuous renewal of our vehicle fleet is contributing to improved energy efficiency, as the new vehicles use less energy than their predecessors. We also want to try other drive concepts as alternatives to conventional diesel together with interested public transport authorities. Hybrid, battery or hydrogen drives will play a role here. The aim is to reduce noise and emissions and conserve fossil energy, even for non-­electrified branch lines.