Deutsche Bahn is penetrating into logistics area

Filed in archive Market Overview on November 22, 2005

Last week I was in Berlin and I attended in a presentation by Deutsche Bahn, the german railroad company. In the presentation, they talked about their challenges regarding current profitability of their core business.

On the other hand, I saw a recent news about Deutsche Bahn buying BAX Global, a U.S.-based transport and logistics company owned by The Brink's Co.
and the sale price was about $1.1 billion.

BAX Global, which offers international freight transportation and supply chain management, is based in Irvine, Calif., and has some 12,000 employees worldwide.

It seems that intense competition in the train area has challenges regarding profitability for the german company has made it penetrate into other sectors like logistics as well and then try to offer integrated solutions (train+truck) in the area.

We have to wait and see what consequenses these strategic actions will have on the structure of the industry in the future.