Strategy of DB Schenker Rail AGas a national carrier on the global logistic market

Hans-Georg Werner

DB Schenker Rail AG

19 June 2014

Sochi

There are two basic sources of DB Schenker Rail strategy. One is the group strategy DB2020

Customer and quality

Profitable growth

Strategic directions

VisionWe are becoming the world's leading mobility and logistics companySustainable business success and social acceptance

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2

3 4Cultural change/ employee satisfaction

Resource preservation emissions and noise reduction

Sustainability dimension

Profitable market leaderEconomic

Top employerSocial

Eco-pioneerEnvironmental

Top TopTop 11012

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The other is our vision to go “from patchwork to network”

Past („Patchwork“)

TodayFuture („Network“)

Nationalnetworkprovider

European railway company

“under construction”

First choice for rail network solutions

in Europe

PKP

SNCF

SBBÖBB

NS

DSB

Globaliation on the Euroasian transport market causes change in transport demand

Past Future

Local activities of customers, including supply chains and distribution

Local transport needs Good adjustment to local

conditions (regulations, legal requirements)

Competition with local entities, who offer also only local solutions

No obstacle to “nationalisation” of transport conditions

Global, Eurasian activities of customers

Demand for modes of transport spanning over country borders

Trend towards a greater uniformity in the area of transport regulations, especially in the countries of the European Union

The “green” factor

Intermediate phase, the present

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On the way to satisfying the global transport demand, cooperation on the rail corridors will be of utmost importance

London

Wroclaw

Leipzig

Shenyang

Brest

Manzhouli

Normalspurabschnitt

Breitspurabschnitt

Wackersdorf Dobra

Leipzig

Shenyang

Brest

Manzhouli

Normalspurabschnitt

Breitspurabschnitt

Wackersdorf Dobra

Usage of the “High-Speed-One” connection from the channel to London

First direct transport from Poland to UK

Transport on the whole route from Germany to Turkey from one hand

Utilisation of both own companies and third party players

Cooperation with national railways and premium logistic partners

Transport in regular train paths via the Trans-Siberian rail route to China

Handling of the containers due to different track gauges in Brest (Belarus) or Dobra (Slovakia) and Manzhouli (China)

5

Cerkezköy

Nurnberg

The success will be achieved by those, who are able to cooperate and together offer a holistic solution

1. Know-how from various countries

2. Good relations with other players on the local markets and infrastructure managers/owners

3. Ability to navigate the murky waters of legal/formal requirements

4. Contacts with local “last mile” and additional service providers (logistics companies)

5. Question of assets and their ability to fit the local conditions

Challenges

Since one operator or logistics company

cannot cover all the bases, creating alliances

and partnerships to bundle capacities on corridors is the only

way to be able to offer a holistic product the customer expects

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Thank you for your attention