DB agrees €6.3bn framework signalling and train control contract

Four contractors have been selected for the landmark contract to supply equipment as part of the Digital Rail Germany initiative.

GERMAN Rail (DB) has signed an unprecedented €6.3bn framework agreement with four contractors for the supply of digital train control and safety technology, including new digital interlockings, the supply of ETCS, and integrated control and operating systems.

In total, DB is expected to order 15,500 control units under the four separate contracts by the end of 2028 with implementation set to run until 2032 for individual projects. DB says it will make the first call-offs worth several million euros this spring.

The four chosen contractors are:

MerMec Deutschland
Hitachi Rail GTS Deutschland
Alstom, and
a consortium of Siemens Mobility and Leonhard Weiss.

DB says that it will make binding call-offs throughout the duration of the contracts, which it says will encourage its contractors to develop platform solutions with standard interfaces that will be produced at scale.

DB adds that this approach will reduce the time it takes to, plan, execute and commission these projects from up to eight years to “just a few years” in the future. The structure of the arrangement will also end the need for individual contracts and tenders, again speeding up implementation, and is a process that DB plans to use elsewhere.

Berthold Huber, DB’s board member for infrastructure, says the national railway is aiming to massively advance digitisation of its network over the next few years. “The new framework contract with the sector will significantly accelerate this process,” he says.

“Control and safety technology is one of the most quality-critical systems with the highest level of obsolescence. The volume contract will make a significant contribution to changing this situation and renewing more control and safety technology more quickly."

Siemens and Leonhard Weiss’ share of the contract is worth €2.8bn while Alstom confirmed in a statement that it will supply at least 1890 interlockings and ETCS with a value of more than €600m.

Alstom welcomes the deal providing an “unprecedented level of planning and execution security.” Siemens Mobility CEO, Michael Peter, also describes the deal as a “paradigm shift” for the rail industry.

“It enables the industry to develop the resources necessary for modernising Germany’s rail network,” Peter says. “And thanks to its optimised interfaces, the contract will also make the implementation process much more efficient.”

MerMec and Hitachi Rail did not disclose the value of their respective contracts.