Europe's Debate on Digital Automatic Coupling Heats Up: Can Freight Rail Afford the Leap?

Rail freight is at a crossroads. With Digital Automatic Coupling (DAC), ERTMS, and major infrastructure upgrades on the table, Europe’s rail sector must balance innovation, costs, and competition—or risk losing momentum.

The future of Digital Automatic Coupling (DAC) remains a divisive topic across Europe’s freight rail sector. At the RailFreight Summit 2025 held in Gdańsk, industry leaders gathered once again to discuss the promises—and pitfalls—of this ambitious technology. While the technical benefits of DAC are widely recognised, serious questions remain about its economic feasibility and long-term impact on competitiveness.

🚄 3 countries. 2 Years. 1 goal: a smarter, greener rail freight future.

Watch the full video from the #EU_Rail FP5-TRANS4M-R project, showcasing two years of testing the DAC across Europe — a key step toward full rail digitalisation.

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DAC: A Technological Revolution at a High Price

Michał Litwin, Director of the Polish independent rail association ZNPK and board member of the European Rail Freight Association (ERFA), joined Libor Lochman, ambassador for DAC at Europe’s Rail, in a frank debate on the issue. Litwin pointed to an Ernst & Young study estimating the implementation cost of DAC at EUR 12–13 billion, but warned that alternative estimates suggest a figure closer to EUR 20–30 billion across Europe.

Litwin stressed that Europe’s rail freight sector, already under significant pressure, cannot shoulder such a financial burden without risking its survival. Lochman agreed, stating, "Full DAC implementation will likely never happen—such costs would amount to economic suicide." He added that large-scale investment must be carefully targeted.

DAC Rollout: Not Every Operator Will Win

The discussion pointed out that while DAC could offer clear advantages for some operators, it is far from a universal solution. "Without a solid business case, DAC would make no economic sense for many companies," Lochman observed. However, for certain operators, the technology could prove transformative—particularly by enhancing train acceleration, braking, and overall network efficiency.

DAC’s ability to shorten braking distances and improve flexibility could allow rail freight to better compete against road transport, especially for single wagonload shipments. Litwin and Lochman agreed that DAC could help reclaim market share from the road sector, offering new opportunities if introduced strategically.

Thorsten Bieker, Vice President of Logistics at BASF, reinforced the argument, noting that DAC could enable heavier trains and greater capacity utilisation across Europe’s congested rail corridors. "DAC’s real value lies in helping rail compete with road freight, particularly by making single wagonload services more viable," he commented during the panel discussion. Participants also pointed out that customer needs must shape DAC’s design and deployment, rather than a purely top-down technological mandate.

Funding Challenges: Who Will Pay for Europe’s Rail Transformation?

Despite DAC’s technical appeal, major doubts about financing linger. Litwin noted that Europe’s Rail – European DAC Delivery believes that full EU funding should cover the rollout to avoid burdening private companies and driving up freight costs. Otherwise, rail risks being priced out of the logistics market altogether.

Beyond DAC, Litwin and other participants argued that upgrading rail infrastructure, including implementing ERTMS for 740-metre trains, could deliver even greater gains in efficiency and competitiveness than DAC alone. Lochman concluded by saying that national funding and broader public investment must play a role. "Without robust, modern infrastructure, DAC will not deliver its promised benefits," he said, underlining that basic improvements must come first before layering on new technologies.

Source: RailFreight; RAILTARGET