THE EUROPEAN QUESTION. Specifically, why can't we have freight railroads like the North Americans do? Destination: Freedom reports hard times at DB Schenker, the German freight operator.

Now with rail freight volumes down significantly and international cargo operations particularly hard hit, the company has moved to cut losses by reducing both capacity and personnel for the short to medium future. Rail freight division chief Karl-Friedrich Rausch stated that 2400 employees must be let go due to the decrease in freight volumes, and another 1500 jobs will be eliminated due to restructuring and cost savings measures. The division currently employs approximately 24,000 people.

I've had trouble locating employment figures by railroad company: the Association of American Railroads gives total employment in U.S. railroading at under 200,000 people.

Railroading is a wholesale business, and the restructuring plan is consistent with that reality.

In addition to the personnel reductions, the division plans to shut 72 freight depots out of a total of approximately 1600 freight depots and terminals in Germany. The announced actions point to a troubling picture for Germany and Europe as a whole, where the share of freight volume carried by rail continues to remain flat or even decline, and freight volumes hauled by highway trucks continues to increase, now approaching the 90% mark. Although a number of independent rail freight haulers have enjoyed success in Germany their capacity is dwarfed by DB Schenker Rail and much of their operations are dependent upon rail freight yards and container terminals operated by DB Schenker Rail.

But look at the wasted space in this freight yard!

Deutsche Bahn photo courtesy Destination: Freedom.