The deployment of the European Rail Traffic Management System (ERTMS) keeps being a problem for many of the stakeholders involved. A recent study has shown that retrofitting and upgrade costs have both doubled between 2018 and 2022.
“Retrofitting costs have grown from 450,000 to 900,000 euros per vehicle, and upgrade costs have increased from 200,000 to 400,000 euros”, the study claimed. The document, compiled by consultancy firms EY Consulting (formerly Ernst & Young) and INECO on behalf of the European Commission, identified the main cost drivers behind these increases.
They are divided into three categories: design, deployment, and authorisation; in addition, there are drivers that affect all three categories horizontally. These horizontal costs are inflation, which in the four-year span investigated rose by 27 per cent; the energy crisis following the Russian invasion of Ukraine in 2022; limited competition in terms of manufacturing ERTMS components; and the lack of upgradable products.
ERTMS cost increase breakdown
When it comes to the design phase, the main causes behind the higher costs concern national requirements, incomplete or outdated documentation on vehicle characteristics and project-specific requirements. Concerning the ERTMS implementation phase, the study said that costs rose due to different requirements of different types of vehicles, which often need new designs and authorisations, increasing costs.
Finally, the issues related to authorisation revolve around too long procedures, extensive testing requirements and third-party assessment. To improve the situation, the study suggested a few measures to mitigate the constant rise of costs. The main ones deal with the simplification of national rules, reduction of testing activities and enhancing competition through standardisation.