**Germany**: Deutsche Bahn has signed a €6.3 billion long-term contract for digital control and safety technology, involving major players like Siemens and Alstom. This innovative agreement seeks to streamline and expedite the digitisation of Germany’s railway system, aiming for significant efficiency improvements by 2032.
Deutsche Bahn (DB) has made a significant advancement in the modernisation of Germany’s railway infrastructure by signing a groundbreaking long-term volume contract valued at €6.3 billion for digital control and safety technology. This agreement is notable for being the first of its kind within the railway sector, marking a strategic shift in how contracts are structured and awarded.
The contract encompasses several key components, including digital interlocking technology (DSTW) and the European Train Control System (ETCS), along with integrated control and operating systems. It involves a consortium comprising Siemens Mobility, construction firm Leonhard Weiss, Alstom, MerMec Deutschland, and Hitachi Rail GTS. Under the terms of this contract, which is set to last until 2032, DB has committed to purchasing 15,500 digital control units by 2028.
Siemens Mobility stands to benefit substantially from this deal, assuming the largest portion of the contract valued at approximately €2.8 billion. Meanwhile, Alstom’s contribution is also significant, amounting to at least €600 million for the supply of 1,890 interlocking units.
This strategic approach represents a departure from DB’s traditional practice of issuing multiple smaller contracts, opting instead for a single comprehensive agreement with industry partners. The intent behind this framework is to create a more cohesive and efficient model for implementing digital rail technology over an extended timeline. By securing binding call-off quantities from suppliers, DB aims to enhance standardisation and resource management within the project. Berthold Huber, DB Board Member for Infrastructure, elaborated on this innovative model, stating, “We have entered into a new partnership and agreed on a complete package that benefits both sides — and our customers on the network.”
The new contract is expected to dramatically expedite the digitisation process, which historically involved an average commissioning and implementation timeline of eight years for signalling technology. With the newly established framework, DB anticipates significant reductions in this duration. “The new award and contract model marks a paradigm shift for the rail industry,” stated Michael Peter, CEO of Siemens Mobility, highlighting the model’s potential to foster the development of modernisation resources. He also noted the efficiency gains afforded by the optimised interfaces stipulated in the contract.
Initial project calls are projected to be unveiled by spring 2025, with the comprehensive implementation of individual projects progressing through to 2032. This initiative represents a crucial step towards enhancing Germany’s rail network and improving operational efficiency, which is anticipated to have a positive impact on the overall customer experience on the network.
Source: Noah Wire Services
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