Expansion and Collapse

Strategic Partnership

Germany's Deutsche Bahn AG's (DB) current business activity in the United Arab Emirates is based on a feasibility study compiled by the company in 2006 - a time when Germany had begun to comprehensively intensify its relations to the Gulf countries.[1] The study had focused on the development of the country's railway system. On the basis of the results, the Emirates founded its national railroad company, "Etihad Rail." In March 2010, the DB pursued its activities in the Gulf country with the signing of a statement of intent, foreseeing a strategic partnership in planning, construction and operation of the rail systems. According to the DB, over the next few years "billions in investments in large-scale railway systems were planned." "These include projects for regional transportation, the Metro, the streetcar as well as the Union Railway, a long-distance railway line to link Abu Dhabi with the southern Emirates."[2] In 2011, the DB was awarded the mandate for establishing a concept of operations, maintenance concepts for the infrastructure, a fleet of vehicles and a few other preparations for the country's "Etihad Rail."

Middle East Railway Pioneer

On June 25, the DB concluded a joint venture freight rail system with "Etihad Rail." According to the DB, through this mission it became "the first European railway to be entrusted with operational management functions in the Middle East."[3] "DB Schenker Rail" will recruit more than 200 employees to operate the rail system and perform maintenance on the fleet. According to reports, beginning in October, the first trains are scheduled to haul their freight of sulfur granular powder from the country's interior to the coast. This line is a component of the plan to lay a railway network throughout the Arabian Peninsular. Occasionally during the planning, it had even been considered to extend the rail network toward Europe. The German Minister of Transportation, Peter Ramsauer, had held negotiations with his Syrian counterpart in Damascus in February 2011, about the construction of the railway line from the Arabian Peninsular to the Syrian coastline, where, with a sea link, the goods could be transported to the port of Hamburg. (german-foreign-policy.com reported.[4]) These plans have been put on the back burner, because of the priority the German government is giving to the overthrow of Assad's government.

Railroad Academy

Also in Qatar, the DB's business is profiting from the intensification of cooperation between the two governments. The emirate and Germany have been closely cooperating in foreign policy ventures for quite a few years.[5] The DB had participated in a spectacular project worth billions of Euros in that country in 2009.[6] Even following a 2012 restructuring of formal cooperation, the German company can still boast of being "the most important strategic partner (...) in the development and elaboration of a rail system for the Emirate."[7] According to the company, it is also providing "extensive engineering services, such as technical consultation and - perspectively - also training and qualifying Qatari personnel." The most recent initiative was made in mid-April, within the framework of the "Business and Investment in Qatar Forum." The forum, held in Berlin, was opened by the German Chancellor and the Qatari Prime Minister. The initiative involves the creation of a railway academy in Qatar, which will be a joint project of "DB International," "Qatar Rail" and the Qatari University. At the academy, a professorship is to be included, to be filled with an academic from Germany.

Gender Segregation

For some time, the Deutsche Bahn AG has been actively doing business in Saudi Arabia. According to the company, from 2007 to 2011, it had participated in the project management for underground engineering and track construction for a freight line in the north of the country. From 2009 - 2012, it had been involved in the construction of the elevated rail system in the capital Riyadh, connecting the various areas of the Women's University. Because, in Saudi Arabia, women are not allowed to publicly have contact to any men outside of family members, the elevated trains must be fully automatically driven. But the DB is particularly involved in the 450 km long high-speed rail line linking Mecca to Medina. This project is considered the most prestigious infrastructure project in the whole of the Middle East. The DB has now assumed the management of the project.

First Class Solution

DB's business deals with these dictatorships at the Gulf are boosting it toward its declared objective of expansion. As the company claims in its official "mission statement," it has, already today, "achieved a position of leadership on the international market."[8] It still strives to become "the world's leading mobility and logistics company." The DB's domestic activities, which have included massive cutbacks, are also subordinated to reaching this objective. For years, this has repeatedly provoked strikes because the employees refuse to accept wage increases far below inflation rates, accompanied by hikes in work intensity, to permit the company to continue to expand.[9] For years, serious deficiencies in railway operations have also become apparent. This includes extensive breakdowns of trains, due to serious maintenance deficiencies, because, thanks to massive cutbacks in the reserve fleet, no replacements are available [10]; over-heated wagons, whose air conditioning - due to austerity measures - can only function in climatic conditions within the regional temperature norms; or the partial shut-down of the main station in Mainz, the regional capital of Rhineland Palatinate, an important regional public transportation junction. Transportation cannot be provided after 8 pm, at all, because of a lack of personnel and otherwise only at certain restricted hours of the day. Train passengers mock the Deutsche Bahn's "mission statement" claiming to seek to "provide first class solutions in mobility and logistics."

2.7 Billion Euros

However, it is not because funds are lacking. In 2012, the DB Corporation achieved total sales of approx. 39.3 billion Euros, which, according to the company, when purged of special effects, had resulted in an operative income of approx. 2.7 billion Euros. However, because expansion and leadership on the world market have precedence, austerity continues to reign at home.

Other reports and background on the expansion of the Deutsche Bahn AG can be found here: German Industrial Standard (DIN) and Gulf Stability.

[1] see also Deutsche Tradition and Gulf State Military Partner
[2] Verstärktes Engagement in den Vereinigten Arabischen Emiraten; www.db-international.de
[3] DB und Etihad Rail entwickeln Schienenverkehr auf der Arabischen Halbinsel; www.db-international.de
[4] see also Eine Frage der Taktik
[5] see also Gulf Stability and Fragile Use of the Gulf Dictatorships
[6] see also Die Qatar-Bahn
[7] Strategische Partnerschaft in Katar neu aufgestellt; www1.deutschebahn.com
[8] Zukunft bewegen. Das Leitbild des DB-Konzerns; www.deutschebahn.com
[9] see also Begleiterscheinungen der Expansion
[10] see also Wohin die Reise geht