Deutsche Bahn (DB) has entered into a long-term volume contract with four rail industry companies for the delivery and installation of digital control and safety technology. The agreement, valued at EUR 6.3 billion, covers digital interlocking technology (DSTW), including the European Train Control System (ETCS), as well as integrated control and operating systems.
The contract has been signed with MerMec Deutschland GmbH, Hitachi Rail GTS Deutschland GmbH, Alstom, and Siemens Mobility in partnership with Leonhard Weiss. Under the agreement, DB has committed to procuring a total of 15,500 control units by the end of 2028, with implementation scheduled to continue until 2032.
Berthold Huber, Board Member for Infrastructure at Deutsche Bahn AG, highlighted the significance of the agreement.
“Over the next few years, we aim to rapidly advance digitalisation across the rail network and renew a vast number of signals, switch drives, and signal boxes. This volume contract will significantly accelerate the process. By forming a new partnership with the industry, we have secured a comprehensive package that benefits both sides, ultimately improving service for our customers. Control and safety technology is critical to maintaining high-quality rail operations, and this agreement will help modernise these systems more efficiently,” Huber said.
A key feature of the agreement is its long-term scope and guaranteed volume commitments. DB will provide binding call-off quantities over the contract period, while industry partners will implement standardised technical platform solutions with uniform interfaces and build the necessary resources to ensure smooth project execution.
Contract with Alstom
The contract, valued at over EUR 600 million, covers at least 1,890 interlocking units and includes multiple phases, with calls for implementation scheduled between 2025 and 2028. The first phase is set to commence in the first quarter of 2025, with project completion expected by 2032.
The contract provides both DB and Alstom with long-term planning and execution security. Alstom will be responsible for supplying and integrating digital interlocking systems, as well as control and safety technologies aligned with the European Train Control System (ETCS) standard. The interlocking units will include essential rail infrastructure components such as switch drives, signals, and track barriers.
Contract with Hitachi Rail
The agreement with Hitachi Rail, finalised at the end of 2024, includes the provision of digital interlocking technology (DSTW), European Train Control System (ETCS) digital signalling and an integrated control and operating system (iLBS).
Contract with Siemens Mobility
Siemens Mobility, in a consortium with the construction company Leonhard Weiss, has won a significant share of DB’ first volume contract. The contract value for the consortium is worth around EUR 2.8 billion.
Faster implementation process
One of the primary advantages of this approach is a significant reduction in project timelines. Traditionally, the process of planning, awarding contracts, constructing, and commissioning new rail technology has taken an average of eight years. Under this new model, the process is expected to be shortened to just a few years. The agreement also eliminates the need for multiple individual contracts, streamlining planning and execution.
This framework is expected to serve as a model for future contracts in other areas of railway infrastructure modernisation.
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