Rail Operators Push for More Funding as EU-Rail DAC Initiative Advances

The EU-Rail Joint Undertaking is moving forward with its Digital Automatic Coupling (DAC) initiative, a significant effort to modernize rail freight across Europe. However, recent communications to rail operators have revealed that the project will not be fully funded, leading to concerns about the financial impact of the necessary upgrades.

The DAC initiative, which aims to introduce advanced coupling technology to improve rail freight efficiency and safety, will only cover 50% of the total costs incurred by rail operators, as confirmed in an email received by the RAILTARGET editorial team. This has sparked concerns among operators in countries like the Czech Republic, Slovakia, and Poland, who have expressed concerns that a 50% subsidy is insufficient, citing the need for 100-120% funding to accommodate the extensive upgrades required for their fleets.

The introduction of DAC will require the decommissioning of numerous railcars, including not only older models but also some of the newest, most advanced wagons such as, for instance, those manufactured by Innofreight. These ultralight wagons, specifically designed to maximize material load capacity, cannot accommodate the new DAC technology without significant retrofitting or replacement, leading to increased costs for operators.

To address these challenges, a Pioneer DAC Trains (PDT) Project is being proposed, involving a large European consortium that will apply for Connecting Europe Facility (CEF) funding. The consortium aims to submit a detailed proposal by January 21, 2025, and outline the financial and technological requirements for implementing the DAC. The total estimated cost of the project is approx. EUR 150 million, with a target of EUR 70-80 million in funding from the CEF.

The funding plan proposes national and regional co-funding wherever possible, with up to 50% of the costs related to DAC components, engineering, and retrofitting covered by the project. However, operators will still need to cover the remaining expenses, including those for training, project management, and partial retrofitting. The consortium members are also expected to share the costs for external expert support, estimated at up to EUR 15,000 per member, to prepare the CEF proposal.