photo: Siemens Mobility / Public domain/Illustrative photo
Siemens Mobility, in partnership with Leonhard Weiss, has won a EUR 2.8 billion share of Deutsche Bahn’s (DB) groundbreaking EUR 6.3 billion contract for modernizing Germany’s rail network with digital control and safety technology.
Deutsche Bahn’s latest EUR 6.3 billion volume contract is a significant step away from traditional procurement models, consolidating multiple smaller projects into a single, long-term agreement. This shift is designed to streamline project execution, ensure stable funding, and accelerate infrastructure upgrades across Germany’s rail network.
Siemens Mobility, along with construction firm Leonhard Weiss, has secured a EUR 2.8 billion share of the contract, which will focus on implementing cutting-edge digital signaling and safety technology. According to the press release from Siemens Mobility, the first projects under this framework are expected to begin as early as spring 2025.
"We are especially proud to have won a significant share of Deutsche Bahn’s volume contract together with our partner Leonhard Weiss," said Michael Peter, CEO of Siemens Mobility. "As the global market leader, we will provide the digital control and safety technology needed for Germany’s rail modernization. This contract marks a paradigm shift for the rail industry, allowing for faster implementation and optimized efficiency."
What Makes This Contract Different?
According to LOK Report, unlike previous rail infrastructure contracts, which were awarded on a project-by-project basis, Deutsche Bahn’s new framework agreement guarantees long-term work commitments to industry partners.
- Faster implementation: The traditional process of ordering, planning, construction, and commissioning typically takes eight years. With this new model, DB expects to cut that timeline to just a few years.
- Scalability and efficiency: By creating platform solutions with standard interfaces, companies like Siemens Mobility and Leonhard Weiss can develop and deploy resources more effectively.
- Investment security: The contract allows DB’s partners to secure funding and staffing over a long-term period, ensuring that projects are completed without delays due to financial uncertainties.
Marcus Herwarth, CEO of Track Infrastructure Construction at Leonhard Weiss, commented: "The volume contract underscores Deutsche Bahn’s confidence in our expertise and performance. We are highly motivated and at the same time have great respect for this major undertaking, which will play a key role in shaping the future of mobility and rail infrastructure."
As part of the new long-term contract, Siemens Mobility will provide:
- Advanced digital control and safety systems to enhance railway efficiency.
- Integrated signaling technology to improve train scheduling and minimize delays.
- Optimized operational interfaces, ensuring that upgrades are implemented without major disruptions to existing rail services.
The Road Ahead: Transforming Germany’s Rail Network
Germany’s rail industry is at a critical turning point, with aging infrastructure and growing demand for sustainable transport solutions requiring immediate attention. Deutsche Bahn’s new procurement model is expected to set a precedent for future infrastructure projects, not just in Germany but across Europe. With Siemens Mobility and Leonhard Weiss playing a major role in this modernization effort, the next decade could see Germany’s railways evolve into one of the most advanced and efficient networks in the world. The first projects under the framework contract will commence in 2025, with results expected to be visible within a few years—rather than nearly a decade under traditional procurement methods.
Source: Siemens Mobility; LOK Report