Deutsche Bahn AG has launched the sale process for its logistics subsidiary DB Schenker.

The German state rail operator noted that the DB Group had issued an official announcement laying out an "open and non-discriminatory process" for the sale of the shares.

"The condition for a sale is that it must have apparent economic advantages for Deutsche Bahn in all respects," it said, citing how the international logistics market offers "excellent prospects" for long-term growth.

The company noted that as one of the world's top 4 logistics companies, DB Schenker has a "solid position within the market."

"DB Schenker has contributed very positively to the DB Group's economic growth over the years," the announcement said.

"However, the DB subsidiary will need more capital and flexibility for its own growth."

The DB Group said it will retain all proceeds from a sale, a large part of which will be used to reduce debt.

It added that a sale would also "significantly accelerate" Deutsche Bahn's focus on its core business and the implementation of the strong rail strategy.

"Deutsche Bahn has already completed or contractually agreed the sale of several of its business units in foreign markets and would be taking another big step by letting go of DB Schenker," the German group said.

"Our goal is to serve the climate, people and the economy by substantially increasing the cargo and passenger volumes handled by eco-friendly rail services," it added.

In December 2022, the Supervisory Board of Deutsche Bahn AG assigned DB's Management Board the task of examining the case and preparing for a potential sale of its entire shares in DB Schenker.

The final decision on the sale of DB Schenker will be based on a separate resolution adopted by the Supervisory Board of Deutsche Bahn AG at the end of the sale process.

It added that the process is also subject to general capital market developments.

"Compared to its competitors, DB Schenker has a strong position in all the relevant industry sectors — land, air and ocean freight — and in comprehensive and specialized logistics solutions," DB Group said of DB Schenker.

It added that the company has some 76,600 employees at over 1,850 locations in more than 130 countries, and the company is one of the world's leading logistics providers.