Given the differences in the development conditions, technical know-how, resources and investment of various non-transport businesses, the railway transport enterprises in various countries adopt quite different business strategies, resulting in distinctive business models.
（1）Logistics business
Such service requires a fairly large service network and a long service chain as a support, as well as the ability to provide logistics service for certain special items (such as hazardous chemicals, pharmaceuticals, bulky items, and cold links, etc.). It is difficult for railway enterprises themselves to extend to all aspects of business development. To this end, DB AG and SNCF adopted rapid and economical approaches such as mergers and acquisitions (M & A) and resource integration, rapidly improving the comprehensive logistics business capabilities and developing into global leading integrated logistics service enterprises. For example, DB AG acquired logistics giant Stinnes and Bax Global which has a large network in North America and Asia Pacific; SNCF acquired TNT's freight management department, IBM Global Logistics Department, and Ciblex, etc. Both the transport enterprises have established the wholly-owned subsidiaries to operate the logistics business independently. CR is stepping up efforts to develop logistics business. In addition to adopting a self-operation model to promote the development of logistics parks, it also strengthens cooperation with other enterprises, and has opened new businesses such as express container train, e-commerce train, CRH express, and special freight train transporting cars used for self-driving tour, etc. CR fully participates in the competition in domestic logistics sector and actively develops the international logistics business. It operates China Railway Express with destinations reaching more than 20 countries in Europe and Asia, greatly enhancing the influence of China railway.
Such service requires a fairly large service network and a long service chain as a support, as well as the ability to provide logistics service for certain special items (such as hazardous chemicals, pharmaceuticals, bulky items, and cold links, etc.). It is difficult for railway enterprises themselves to extend to all aspects of business development. To this end, DB AG and SNCF adopted rapid and economical approaches such as mergers and acquisitions (M & A) and resource integration, rapidly improving the comprehensive logistics business capabilities and developing into global leading integrated logistics service enterprises. For example, DB AG acquired logistics giant Stinnes and Bax Global which has a large network in North America and Asia Pacific; SNCF acquired TNT's freight management department, IBM Global Logistics Department, and Ciblex, etc. Both the transport enterprises have established the wholly-owned subsidiaries to operate the logistics business independently. CR is stepping up efforts to develop logistics business. In addition to adopting a self-operation model to promote the development of logistics parks, it also strengthens cooperation with other enterprises, and has opened new businesses such as express container train, e-commerce train, CRH express, and special freight train transporting cars used for self-driving tour, etc. CR fully participates in the competition in domestic logistics sector and actively develops the international logistics business. It operates China Railway Express with destinations reaching more than 20 countries in Europe and Asia, greatly enhancing the influence of China railway.
（2）Highway passenger and other transport services
This kind of business can complement the railway transport in the operation and management. Major railway transport enterprises in Germany, France and Japan have developed this service earlier and reached a considerable scale of operation, but there are certain differences in the business model. Germany has a model of acquisition and self-operation. France mainly adopts a joint venture model, and Japan has both self-operation and joint ventures. DB RegioBus, a wholly-owned subsidiary of DB AG in Germany, is the largest bus operator in Germany. By acquiring the British company Arriva, DB AG has expanded its business to other European countries. SNCF has a 70% stake in the company Keolis which is engaged in various modes of transport service such as highways. JR East Japan has established some wholly-owned or joint venture enterprises to undertake public transport. For example, JR Bus Kanto Co., Ltd. and JR Bus Tohoku Co., Ltd. are both wholly-owned subsidiaries of JR East Japan, and Tokyo Monorail Co., Ltd. is a subsidiary in which JR East Japan holds a 79% stake.
This kind of business can complement the railway transport in the operation and management. Major railway transport enterprises in Germany, France and Japan have developed this service earlier and reached a considerable scale of operation, but there are certain differences in the business model. Germany has a model of acquisition and self-operation. France mainly adopts a joint venture model, and Japan has both self-operation and joint ventures. DB RegioBus, a wholly-owned subsidiary of DB AG in Germany, is the largest bus operator in Germany. By acquiring the British company Arriva, DB AG has expanded its business to other European countries. SNCF has a 70% stake in the company Keolis which is engaged in various modes of transport service such as highways. JR East Japan has established some wholly-owned or joint venture enterprises to undertake public transport. For example, JR Bus Kanto Co., Ltd. and JR Bus Tohoku Co., Ltd. are both wholly-owned subsidiaries of JR East Japan, and Tokyo Monorail Co., Ltd. is a subsidiary in which JR East Japan holds a 79% stake.
（3）Daily life services
The daily life services such as hotel business, tourism, advertising, and property management, etc. is a commercialization activity aimed at satisfying the diversified needs of customers. With relatively small investment amount, the railway enterprises in different countries have adopted flexible and various business modes including self-operation, joint operation, cooperation, and joint venture, etc. The self-operation mode is usually adopted in hotel business, tourism and property management, and the outsourcing mode of joint operation is widely adopted in advertising business. DB AG conducts vehicle service, security service and property management business through its wholly-owned subsidiary DB Service Co., Ltd. Automatic baggage storage, hotel reservation, and ticket sales, etc. are all self-operated, but the advertising business is outsourced. SNCF takes an outsourcing approach to the advertising business. Most of the hotels opened by JR East Japan are wholly owned by the company, and a few hotels are joint ventures established with other enterprises. Two wholly-owned advertising enterprises are established to carry out various advertising businesses at stations and on the trains. The Travel Service Co., Ltd. is a travel agency company of which JR East Japan owns 67%, and operates membership-based travel and cruise businesses. The railway administrations affiliated to CR have set up hotel operating enterprises and tourism enterprises to carry out accommodation, catering, and tourism businesses, etc., and develop advertising business by open tendering. They cooperate with social catering enterprises to introduce "Internet Plus" service and provide train catering and onboard food delivery services.
The daily life services such as hotel business, tourism, advertising, and property management, etc. is a commercialization activity aimed at satisfying the diversified needs of customers. With relatively small investment amount, the railway enterprises in different countries have adopted flexible and various business modes including self-operation, joint operation, cooperation, and joint venture, etc. The self-operation mode is usually adopted in hotel business, tourism and property management, and the outsourcing mode of joint operation is widely adopted in advertising business. DB AG conducts vehicle service, security service and property management business through its wholly-owned subsidiary DB Service Co., Ltd. Automatic baggage storage, hotel reservation, and ticket sales, etc. are all self-operated, but the advertising business is outsourced. SNCF takes an outsourcing approach to the advertising business. Most of the hotels opened by JR East Japan are wholly owned by the company, and a few hotels are joint ventures established with other enterprises. Two wholly-owned advertising enterprises are established to carry out various advertising businesses at stations and on the trains. The Travel Service Co., Ltd. is a travel agency company of which JR East Japan owns 67%, and operates membership-based travel and cruise businesses. The railway administrations affiliated to CR have set up hotel operating enterprises and tourism enterprises to carry out accommodation, catering, and tourism businesses, etc., and develop advertising business by open tendering. They cooperate with social catering enterprises to introduce "Internet Plus" service and provide train catering and onboard food delivery services.
（4） Real estate development and operation
Because such business has high requirements on the financing and risk control performance of enterprises, and is subject to restraint by the government's land development policies and urban planning plans, the main railway transport enterprises not only sell the idle land assets through wholly-owned subsidiaries, but also use joint ventures to cooperate with the government, other large institutions or real estate development enterprises to develop land into public facilities, commercial real estate, and residence, etc. Germany and France mainly adopt a cooperation model, while Japan and China mainly resort to the self-operation model supplemented by cooperation. DB AG has worked with German states and local governments to develop the idle land for railways in a bid to balance the interests of all parties, improve financing capacity and speed up the development process. The station management department of SNCF is responsible for real estate management. For large-sized stations and surrounding real estate development projects, SNCF usually establishes a subsidiary with the local government for building planning, financing and construction. The local government bears most of the construction expenses, and the company is responsible for operation after construction. JR East Japan has established a wholly-owned subsidiary, JR East Urban Development Corporation, to develop and manage its own land and building resources. The station buildings are mainly developed by the company itself, and the development projects such as apartments and houses, food and beverage outlets, bathing shops and audio-visual spots along the line are developed in cooperation with other enterprises. On the basis of self-operation, CR actively seeks partners and selects the appropriate land development businesses such as commercial housing, commercial real estate, tourism real estate, and parking lots according to local conditions.
Because such business has high requirements on the financing and risk control performance of enterprises, and is subject to restraint by the government's land development policies and urban planning plans, the main railway transport enterprises not only sell the idle land assets through wholly-owned subsidiaries, but also use joint ventures to cooperate with the government, other large institutions or real estate development enterprises to develop land into public facilities, commercial real estate, and residence, etc. Germany and France mainly adopt a cooperation model, while Japan and China mainly resort to the self-operation model supplemented by cooperation. DB AG has worked with German states and local governments to develop the idle land for railways in a bid to balance the interests of all parties, improve financing capacity and speed up the development process. The station management department of SNCF is responsible for real estate management. For large-sized stations and surrounding real estate development projects, SNCF usually establishes a subsidiary with the local government for building planning, financing and construction. The local government bears most of the construction expenses, and the company is responsible for operation after construction. JR East Japan has established a wholly-owned subsidiary, JR East Urban Development Corporation, to develop and manage its own land and building resources. The station buildings are mainly developed by the company itself, and the development projects such as apartments and houses, food and beverage outlets, bathing shops and audio-visual spots along the line are developed in cooperation with other enterprises. On the basis of self-operation, CR actively seeks partners and selects the appropriate land development businesses such as commercial housing, commercial real estate, tourism real estate, and parking lots according to local conditions.
（5）Wi-Fi coverage and other IT services
To meet passengers’ strong demand of Wi-Fi coverage service, major railway operators in the world have worked hard to develop onboard and station-wide Wi-Fi services, and used online platforms to introduce tremendous value-added services such as information and inquiry. In terms of business mode, given the high level of information technology involved in Wi-Fi services, most of the railway operators around the world worked with telecom enterprises in providing the services. For example, in Germany DB AG has been working with Deutsche Telekom to provide Internet services on ICE trains, and in stations and waiting rooms. In France, SNCF has formed a cooperation alliance with telecom operator Orange, data processing organization Capgemini, satellite operator Eutelsat and railway equipment manufacturer Alstom to provide Wi-Fi services on TGV trains. In Japan JR East has cooperated with UQ Communications in providing WiMax Internet access at some stations and on trains, including at 162 stations in the capital circle, as well as on the Narita Express E259 Series, Super Hitachi and Akebono E657 Series trains. In addition to providing free Wi-Fi service at stations, CR has established China Railway Gecent Technology Co., Ltd., a joint venture with Geely and Tencent, and developed an App for free Wi-Fi access for passengers traveling on the Fuxing HS trains.
To meet passengers’ strong demand of Wi-Fi coverage service, major railway operators in the world have worked hard to develop onboard and station-wide Wi-Fi services, and used online platforms to introduce tremendous value-added services such as information and inquiry. In terms of business mode, given the high level of information technology involved in Wi-Fi services, most of the railway operators around the world worked with telecom enterprises in providing the services. For example, in Germany DB AG has been working with Deutsche Telekom to provide Internet services on ICE trains, and in stations and waiting rooms. In France, SNCF has formed a cooperation alliance with telecom operator Orange, data processing organization Capgemini, satellite operator Eutelsat and railway equipment manufacturer Alstom to provide Wi-Fi services on TGV trains. In Japan JR East has cooperated with UQ Communications in providing WiMax Internet access at some stations and on trains, including at 162 stations in the capital circle, as well as on the Narita Express E259 Series, Super Hitachi and Akebono E657 Series trains. In addition to providing free Wi-Fi service at stations, CR has established China Railway Gecent Technology Co., Ltd., a joint venture with Geely and Tencent, and developed an App for free Wi-Fi access for passengers traveling on the Fuxing HS trains.
（6）Financial and insurance businesses
Featuring large investment, high risk and returns, financial and insurance businesses here include insurance brokering, housing loans and electronic currency business. Railway transport enterprises normally establish joint ventures or work with professional enterprises, but sometimes also do it themselves if the scale and risk of the investment are controllable. For instance, DB AG adopts a joint venture approach. It has established a joint venture with two other enterprises, German Transport Insurance Agency GmbH (DVA), of which DB AG owns 65% of shares. The company is among the best in Europe in terms of insurance business. DVA has provided insurance brokering services for thousands of rolling stocks in 14 European countries. The SNCF integrated several enterprises earlier to set up Société de Crédit immobilier des Chemins de Fer (Socrif), which owns two subsidiaries: SNCF Habitat, a company wholly owned by SNCF and providing real estate loans for employees, and Sofiap, offering housing credit and a La Banque Postale holdings company. Japan and China mainly adopt the cooperation mode in the financial business, and in terms of insurance business, mainly do it themselves. For instance, JR East’s Suica is an e-currency system with functions like booking, settlement and payment. In recent years, JR East has introduced more online services and mobile Internet services with the system through cooperation with several telecom enterprises. In addition, JR East Japan also provides multiple insurance brokering services. The Guangzhou Shenzhen Railway Co., Ltd., a CR affiliate, has piloted bus fee payment with financial IC cards through cooperation with banks, which received good results. And it established and fully funded the China Railway Captive Insurance Co., Ltd., which developed and launched insurance products based on the risk characteristics of the railway industry.
Featuring large investment, high risk and returns, financial and insurance businesses here include insurance brokering, housing loans and electronic currency business. Railway transport enterprises normally establish joint ventures or work with professional enterprises, but sometimes also do it themselves if the scale and risk of the investment are controllable. For instance, DB AG adopts a joint venture approach. It has established a joint venture with two other enterprises, German Transport Insurance Agency GmbH (DVA), of which DB AG owns 65% of shares. The company is among the best in Europe in terms of insurance business. DVA has provided insurance brokering services for thousands of rolling stocks in 14 European countries. The SNCF integrated several enterprises earlier to set up Société de Crédit immobilier des Chemins de Fer (Socrif), which owns two subsidiaries: SNCF Habitat, a company wholly owned by SNCF and providing real estate loans for employees, and Sofiap, offering housing credit and a La Banque Postale holdings company. Japan and China mainly adopt the cooperation mode in the financial business, and in terms of insurance business, mainly do it themselves. For instance, JR East’s Suica is an e-currency system with functions like booking, settlement and payment. In recent years, JR East has introduced more online services and mobile Internet services with the system through cooperation with several telecom enterprises. In addition, JR East Japan also provides multiple insurance brokering services. The Guangzhou Shenzhen Railway Co., Ltd., a CR affiliate, has piloted bus fee payment with financial IC cards through cooperation with banks, which received good results. And it established and fully funded the China Railway Captive Insurance Co., Ltd., which developed and launched insurance products based on the risk characteristics of the railway industry.
（7）Commercial operation of stations
Railway operators in the world generally attach importance to the commercial operation of stations. There are mainly two modes of operation: first comes the leasing mode, which means leasing the whole or a part of the commercial service facilities and spaces such as shopping centers and office buildings developed at the station and its surroundings, and relying on these properties to develop retail, catering, entertainment, parking and other businesses. But the railway operators themselves do not participate in specific operations. The other mode is self-run. The station's service facilities, types, spaces, personnel, etc. are planned and managed by the same station. For example, the DB AG’s wholly owned subsidiaries are responsible for formulating the master plans for the commercial development of stations and the business operation and development plans, while its railway network passenger stations are responsible for the bidding of the business project, selection of businesses in the station and the signing of the lease contract, as well as the collection of rents and the management and coordination of stations. On the other hand, while selling newspapers and magazines itself, other businesses that SNCF relies on its stations to run are all rental-based. The stations collect rents or commissions based on business transaction levels. Japanese railway stations lease the premises to external enterprises for rent, and they also operate a large number of retail, catering, entertainment and other businesses themselves. Many stations have become multifunctional, modern, and comprehensive commercial service market featuring regional characteristics, and become a city's unique logo and business circle. CR has tapped the value of commercial resources of passenger stations by opening to external enterprises for catering, retail and other services, but also operated some businesses at stations itself.
Railway operators in the world generally attach importance to the commercial operation of stations. There are mainly two modes of operation: first comes the leasing mode, which means leasing the whole or a part of the commercial service facilities and spaces such as shopping centers and office buildings developed at the station and its surroundings, and relying on these properties to develop retail, catering, entertainment, parking and other businesses. But the railway operators themselves do not participate in specific operations. The other mode is self-run. The station's service facilities, types, spaces, personnel, etc. are planned and managed by the same station. For example, the DB AG’s wholly owned subsidiaries are responsible for formulating the master plans for the commercial development of stations and the business operation and development plans, while its railway network passenger stations are responsible for the bidding of the business project, selection of businesses in the station and the signing of the lease contract, as well as the collection of rents and the management and coordination of stations. On the other hand, while selling newspapers and magazines itself, other businesses that SNCF relies on its stations to run are all rental-based. The stations collect rents or commissions based on business transaction levels. Japanese railway stations lease the premises to external enterprises for rent, and they also operate a large number of retail, catering, entertainment and other businesses themselves. Many stations have become multifunctional, modern, and comprehensive commercial service market featuring regional characteristics, and become a city's unique logo and business circle. CR has tapped the value of commercial resources of passenger stations by opening to external enterprises for catering, retail and other services, but also operated some businesses at stations itself.
（8）Railway technology derivative businesses such as engineering and technical consulting
If railway enterprises enjoy sound operation conditions, and boast advantages in expertise and resources, they normally operate railway technology derivative businesses themselves, such as vehicle leasing, engineering and technical consultation, transport infrastructure construction, equipment manufacturing and maintenance, but sometimes they also establish joint ventures with other undertakings. DB AG’s a wholly owned subsidiary, German Service Co., Ltd., is engaged in RS maintenance, professional facilities, equipment management, RS leasing and other businesses. DB International Co., Ltd., in the meanwhile, provides engineering consulting, project management and other services. On the other hand, the SNCF has many important wholly-owned or joint venture subsidiaries in the field of engineering design and construction. For example, Systra, of which SNCF holds 41.9% shares, is the largest engineering group in the world's railway and urban transport, and also the main contractor of large-scale infrastructure projects. JR East has a number of wholly-owned subsidiaries engaged in the manufacturing and maintenance of rolling stock and parts. And China Railway Design Corporation, a subsidiary of CR, provides EPC, survey, design, consulting, supervision, project management and other businesses in railway, urban rail transit, highway, etc.
If railway enterprises enjoy sound operation conditions, and boast advantages in expertise and resources, they normally operate railway technology derivative businesses themselves, such as vehicle leasing, engineering and technical consultation, transport infrastructure construction, equipment manufacturing and maintenance, but sometimes they also establish joint ventures with other undertakings. DB AG’s a wholly owned subsidiary, German Service Co., Ltd., is engaged in RS maintenance, professional facilities, equipment management, RS leasing and other businesses. DB International Co., Ltd., in the meanwhile, provides engineering consulting, project management and other services. On the other hand, the SNCF has many important wholly-owned or joint venture subsidiaries in the field of engineering design and construction. For example, Systra, of which SNCF holds 41.9% shares, is the largest engineering group in the world's railway and urban transport, and also the main contractor of large-scale infrastructure projects. JR East has a number of wholly-owned subsidiaries engaged in the manufacturing and maintenance of rolling stock and parts. And China Railway Design Corporation, a subsidiary of CR, provides EPC, survey, design, consulting, supervision, project management and other businesses in railway, urban rail transit, highway, etc.
