The financial aspect of the deployment of the Digital Automatic Coupling (DAC) remains somewhat of a mystery when it comes to how much it will cost and, especially, who will have to pay. According to Christoph Pasternak, CEO of EUROFIMA, it would be possible to implement a hire-purchase scheme that would cost 3.45 euros a day per wagon for 20 years.
“It was an idea pre-discussed in a meeting with DG Move and EIB, now we would like to start an industry dialogue to dive a bit deeper into the idea, as there are many devils in the details”, Pasternak revealed in an interview with RailFreight.com. The daily expense of 3.49 euros per wagon (almost 1,300 euros per year) is based on the estimated cost of equipping a wagon with DAC, set between 22,000 and 25,000 euros.
Level playing field
One of the issues with paying for DAC is that smaller players might struggle to find the funds, especially since the EU has not yet decided how much it will cover for the rollout phase. “With at least 15 billion euros in funding needed, I assume that subsidies and grants will cover one-third of the costs maximum”, he said. However, Pasternak added that his proposed model would be the same for all companies across the EU, whether they are large rolling stock lessors or small industrial entities.
The plan would be to create a non-profit DAC rental company for all users in Europe. “Based on EU guarantees and our AA rating as a non-profit institution, we have calculated that we could offer a DAC in a hire-purchase scheme over 20 years at 3.49 EUR per day. This would massively reduce the initial investment costs”, he explained. With hire-purchase schemes the ownership of the product would go to the final user once the debt has been settled.
Tests continue
While the financial aspects of a large-scale DAC deployment are far from being a certainty, tests on the ground are ongoing in different parts of the Old Continent. Austria and Sweden are leading the way, with pilots for intermodal and bulk transport with DAC-equipped trains in harsh conditions. Large-scale tests are scheduled for 2027, involving Germany, Austria, Italy, Luxembourg, Slovenia, Sweden and Norway.
