Interim Report
Additional information
CUSTOMER AND QUALITY INITIATIVE CONTINUES
We launched our Customer and Quality initiative [see "Internet"] in the previous year and continued it in the first half of 2011. Measures affecting long-distance and regional transport, as well as freight transport and the infrastructure, were developed in 11 projects. The purpose of these measures was to ensure the highest possible level of operational quality, especially during difficult operational situations which could, for example, arise during unusual weather conditions. In view of possible hot weather periods, preventive measures, including the reduction of airconditioning outages, were taken. In addition, passengers should be better informed by optimizing the flow of information during operational disturbances.
INVESTIGATIONS AT DB INTERNATIONAL
KPMG, an audit firm, has been retained to conduct a special investigation at DB International GmbH (DBI) [see "Internet"] following charges arising from preliminary investigation proceedings opened by the public prosecutor’s office in Frankfurt am Main.
The prosecutor accused former DBI employees of making payments and in-kind donations to decision makers abroad in the past, either directly or via third parties. The allegations have been partially confirmed by the special investigation and resulted in DBI taking appropriate action. The official investigations are continuing.
QUALITY GATES INTRODUCED IN PROCUREMENT PROJECTS
In previous years we experienced quality problems in the procurement of new rail vehicles. These problems led to delayed deliveries, unsatisfactory reliability and availability, as well as deficient certification materials.
The introduction of milestones (Quality Gates) in procurement projects is intended to identify and minimize project risks at an early stage, thereby ensuring the highest possible level of quality in the contractually agreed, and on-time, delivery of rail vehicles in the future. Quality Gates involve up to ten fixed dates at which time the client measures and evaluates the quality and completeness of the goods and services that have been provided at that time by the supplier.
Each Quality Gate will be reviewed during a meeting of the client with the supplier. During the meeting the supplier will present the concrete status of the project and the progress made to date based on a Quality Gate criteria list. The supplier will also present the critical path required for the further fulfillment of the contractually agreed standards of quality and delivery times. The client will then state his conclusion as well as his overall assessment of project risks and will decide about passing through the Quality Gate. The industry side has welcomed this procedure. In the interim the Quality Gate process is being used in eight procurement projects and preparations are being made to apply it in five others.
GERMANY IS LEADER IN THE LIBERALIZATION OF RAIL MARKETS IN EUROPE
According to the 2011 Rail Liberalisation Index (LIB Index) [see "Internet"] published in April 2011, Germany is one of the top-ranked European countries in opening its rail transport markets to competition. Sweden is the number one country followed by Great Britain and Germany.
The LIB Index presents the status of the relative market opening of the rail transport markets in Europe and evaluates the legal and factual market access barriers from the point of view of a TOC that wants to enter the market. According to the study, ease of market access has further improved in the past four years since the last LIB Index was published in 2007. One of the reasons behind the improvement is that all of the countries reviewed in the study have expanded their legal platforms enabling access to their markets.
CLAIMS FOR DAMAGES AGAINST MANUFACTURES OF RAILWAY TRACKS UNDER EXIAMINATION
In June 2011 the public prosecutor’s office in Bochum and the German Federal Cartel Office initiated investigations against ten steel companies suspected of illegal price setting related to the sale of railway tracks and switches. If the allegations are proven to be true it could mean that DB Group suffered damages in the amount of millions of euros. DB Group is examining if it has probable cause to file for damages and may do so when the investigation of the possible cartel has assembled sufficient proof.
INVESTIGATIONS AT GROUP COMPANIES
The EU Commission conducted investigations at numerous DB Group locations between the end of March and the start of April 2011. The purpose of the investigations included an examination of DB Energie GmbH’s traction current pricing system that has been in use since 2003. The pricing system had been previously judged to be permissible by the Higher Regional Court in Frankfurt am Main in 2006. DB Group has filed a lawsuit protesting the reexamination with the Court of Justice of the European Union in Luxembourg.
Last modified: 29.07.2011