Statement Deutsche Bahn AG

1. Statement Deutsche Bahn AG 18th Sesssion 15.-16.September 2005 Working Party on Transport Trends and Economics UNECE

2. Introducing Deutsche Bahn AG DB-Concern Transport & Logistic Infrastruktur & Dienste Passenger traffic • DB AG as a Management Holding • Vertically integrated structure • Nr. 1 European Passenger Rail Traffic (1) • Nr. 1 European PT(2) • Nr. 1 Bus Traffic in Germany • Nr. 1 European Rail Freight Transport(3) • Nr. 1 European Land Transport(4) • Nr. 3 Ocean Freight4) • Nr. 5Air Freight(4) • Largest Rail Network in Europe • Nr. 1 Carsharing Germany • Nr. 1 Bike Rental in Europe revenue (Mio. €) HGB 23.963 Operating revenueafter interest (Mio. Euro) 253 revenue (Mio. €) 11.155 revenue (Mio. €) 11.569 revenue (Mio. €) 880 staff 225.512 staff 64.254 staff 62.117 80.179 staff 7.232 Gross investment- (Mio. €) 1.026 Gross investment (Mio. €) 549 5.637 Gross investment (Mio. €) Gross investment (Mio. €) (1) Kopf an Kopf mit SNCF. Umsatzbasiert ist DB Nr. 1 (Stand 2004), leistungsbasiert Nr. 2 nach SNCF (DB 70,3 Mrd. Pkm, SNCF 74,0 Mrd. Pkm), (2) umsatzbasiert (Stand 2004), leistungsbasiert keine Aussage möglich - fehlende Daten, (3) umsatzbasiert und leistungsbasiert (Stand 2003), (4) aufkommensbasiert (Stand 2003)

3. Management Board Organisation DB-Concern Deutsche Bahn AG - Supervisory Board System-verbund Bahn V Heinisch CEO G Mehdorn CFO Finance/Controlling F Sack Marketing & Government M Relations. Human Resources A Suckale Transport & Logistrics L Bensel Infrastructure and Services I Garber Passenger Traffic P Rausch Group Functions Inter City Regio P.R Urban P.S Fern- verkehr Rail Net I.N Stations I.S Energy I.E Services D Stinnes L.V Railion L.R Schenker L.S Breuel Homburg Meyer Heinisch Siebert Witschke Bücken Hager Kremper Held Service- Functions

4. Revenues and Staff Staff DB-Konzern 2004: 225.512 FTE External revenues DB-Konzern 2004: 24,0 bln. EUR Non-Rail20% Non-Rail40% Rail60% Rail80%

5. Degree of Internationalisation DB-Konzern External revenues DB-Konzern 2004, 24,0 bln. EUR Germany Other countries 27% Number of Employees DB-Konzern 2004, 225.512 FTE Germany 87% Others 13%

6. Railion - railfreight traffic performance figures for 2003 72 50 47 20 19 18 15 14 12 10 10 8 7 4 2 2 VR CD MAV NSB PKP EWS SNCF RENFE B-Cargo Trenintalia SBB Cargo ÖBB / RCA GreenCargo Railion Danmark Source: UIC 2003figures in billion tkm Railion Nederland Railion Deutschland

7. Europe- Asian Rail Links: What we shipEast-West-East by rail (rough numbers per year based on 04/05 half-year results) • Number of rail cars • east bound: 22.000 • west bound: 4.500 • total: 26.500 • thereof cars with containers • east bound: 10.000 • west bound: 2.000 • total: 12.000 • equivalent of about 30.000 containers Vast majority of cars passes through Brest/Malazevice Main destinations are CIS states Unbalanced traffic and container flow

8. For DB´s Rail Companies PAN Corridor II and its connections into Asia is the most important rail link Most important rail corridors between Europe and Asia • Efficient (despite gauge changes) Rail Corridors do exist as „spines“ for through traffic on rail : in particular Trans Siberian Route with connecting PAN-Corridor II to West Europe • Transport time only 14 days as opposed to >30 days for combined sea-land transport • Market demands Door-to-door-solution, managing feeder services and handling favourably by way of OSS

9. N-S-Korridor Jaroslawl NO-China Moskau Gorki E Jekaterinburg Smolensk Krasnojarsk Kiel Minsk Hamburg Novosibirsk USA Warschau Amsterdam Brest E Rotterdam Malaszewicze Berlin Köln Rostow Frankfurt München Deutsche Bahn AG with ist daughter companies offers a variety of rail transport products in the west-east-west corridors Products Wagon load Russland Express (West - East) Europa Express (East- West) Intermodal Westwind (West - East) Ostwind (East - West) Nord-Süd-Korridor

10. The Market Share of Rail Transport is below 1% Sea transport Transpacific trade demand USA - ASIA in mio. TEU EUR - ASIA in mio. TEU Trends container transport • China's ports are expected to handle 100 million standard containers by 2010 and the capacity will even double by 2020, according to a plan set by the Ministry of Communications (Statistics show that the port handling capacity in China already amounted to 48 million containers last year 2003) Source: Containerization International – Market Analysis: Future supply and demand for liner services

11. A number of factors still hinder significant increase in the eurasian rail traffic (1) • Participating Railways together with forwarders and other stake holders in the market need to find solution for container management which is focused on the entire Eurasian region • Russia ought to create a price structure for rail transport which is unbiased vis a´vis the kind of transport route • Railways need to emphasise their advantages like reliability, safety, in particular for long distance haulage. • I the 4-axis.project (D,PL,BR.R) the 4 Railways together with governments have agreed to systematically improve the trafic flow and border procedures along Corridor II. Including improved corridor management and quality monitoring. Aim Berlin-Moscow 3,5 days for prime products. • Imbalance of container flow • container flow from Asia ( China) to Europe is 3 to 4 times higher than the one from Europe to Asia. Accordingly market prices are 2200 to 500 US$ • Distorted pricing structure in Russia • Rail transport to and from Russian sea ports are significantly advantaged over all-land rail transport. Eg: Vostochny-Brest is 35% lower than Sabaikalsk-Brest and 20% lower than Naushki-Brest. • Low cost competition by road shipments • lorries take an increasing chunk of the market share • low labor costs along the entire route • less time for boarder handling • no co-ordination for operations needed

12. A number of factors still hinder significant increase in the eurosian rail traffic (2) • Customs Border Crossing Procedures • disruptions of flow of goods and confiscation at Brest even at the smallest errors in the papers. Consequently, many customers turned to prefer road trucking for the segments between western Europe and either Brest or Moscow. • Different Freight Law causes complications • Re-writing of bill of ladings /re-expedition at the OSShD/CIM border is time consuming, costly and leads to mistakes which, again, can cause disruptions with the customs authorities. • Situation has improved in the recent past but improvements can still be reached. Generally, there should be no customs inspections for transit transports . I.e.international agreement that customs handling only at point of entry at destination country. • Railways have ( in the 4-axis-project) called for an integrated CIM/OSShD freight document which is being accepted by authorities along the entire Corridor. At the same time it must be acknowledged as the customs form at the same time. Railways now support the different efforts to exploring ways for implementation

13. For the future, Deutsche Bahn AG considers the potential for rail transport between Asia and western Europe to increase • Transport Volume (without pipeline) 2004 Russia: • D: 14,5 Mio.t • WME (D,F,B,NL,L, DK,P): 35 Mio.t • 2010: 70 Mio t. • Modal Share Rail today: 2% China: • D: 10 Mio t (all goods) • Europe: 1.5 Mio t (high value goods only) • 2010: 3 Mio t (high value goods) Sea Freight (2003) • Asia  Europe 9,0 Mio. TEU • Asia  USA 11,3 Mio. TEU Advantage Rail: • time /distance advantage • rail friendly distances between 3000 and 10.000 km • generally well developed rail infrastructure Quelle: Schenker

14. Thank you very much for your attention Time for Discussions

15. Co-operation for improvement on Corridor II (4-axis-project) Create more attractive products at market oriented prices Optimisation of border processes • error-free freight documents, electronic data transmission • reduction of technical inspections along the corridor (confidentiality trains) • better punctuality and transport times • Integrated price offers for the entire transport (OSS) • Customer friendly services (monitoring, tracking & tracing, feeder services door-to-door) • Capacity improvement • higher speeds • New or improved terminals • co-ordination of road-works (scheduling) • Create single freight docs • Unified customs procedures EU/CIS and beyond • shorter stops for customs inspection in RU and BLR Modernisierung und Ausbau der Infrastruktur Harmonise legal framework for rail transport

16. Erste Verbesserungen der technischen und administrativen Rahmenbedingungen sind bereits in Umsetzung (Vierachsenprojekt) Seddin FfO Rzepin Mala. Brest Smolensk Moskau Total in Tagen • 1. Status des Transportprozesses vor dem Vierachsenprojekt(in Stunden) 21 8 5 1 9 16 24 4 168 18 10 5 240 • 2. Ziel: Vollständig optimierter Transportprozess (in Stunden) 3,5 21 4 2 6 15 10 5 24 Bearbeitungsdauer an der Grenze Beispiel: Russlandexpress von Berlin nach Moskau Transportzeit 10 5 Probleme Lösungen Betrieb • Qualitätsprobleme in der Produktion: fehlerhafte Dokumente, Ressourcenmangel • Zeitaufwändige Übergabeuntersuchungen • Umladung bei Wechsel von Normal- auf Breitspur • Lokwechsel an der Grenze • Keine Vormeldung von Daten • Teilweise veraltete Infrastruktur • Verbindliche Qualitätsleitfäden • Einführung der Übergabe als Vertrauenszüge • Optimierung der Fahrpläne Technik • Systeme zur elektronischen Datenvormeldung • Durchgehender Ausbau der Infrastruktur Zoll/-Frachtrecht • Frachtrechtswechsel an der polnisch-weißrussischen Grenze • Fehlende Anerkennung des Frachtbriefs als Zolldokument • Anerkennung der Fracht- als Zolldokumente • Wegfall von Zollkontrollen (innerhalb EU)