Germany-Austria: Joint venture "Railselect" between ÖBB and DB AG will take place for time being

The planned joint venture "RailSelect" between the freight divisions of the Österreichische Bundesbahnen (ÖBB) and DB AG is not going to take place for the time being.

 
According to press reports, the freight railway cooperation was never operationally active, as the DB boards had not passed their decisions. The JV has also not been entered in the Austrian commercial register. DB AG stated that the framework conditions for cooperations in rail freight transport had changed as a result of the economic crisis.

In the summer of 2008 the media reported that the two companies were in advanced talks on creating a 50/50 joint venture in the freight traffic segment, the Viennese daily Der Standard reported at the weekend citing 'high-ranking' sources within OeBB.

RailSelect that would draw in equal measure on resources from OeBB unit Rail Cargo Austria and Deutsche Bahn subsidiary Railion.

The RailSelect plans faced criticism within OeBB, as some observers believe the joint venture would take unfair advantage of the Austrian company's comparatively large fleet of modern locomotives at a time when locomotives and freight personnel are in short supply throughout Europe.