Germany provides €36 million for DAC pioneer trains

The German transport ministry is providing €36 million for the installation and testing of the Digital Automatic Coupler (DAC). Parties can submit their project outlines from 14 to 25 September during the first call for proposals.
The first funding round will support equipping (or retrofitting) the so-called pioneer trains with DAC. It will also assist research and development projects and studies, says the German transport ministry. It builds on the earlier DAC4EU testing project, which saw the participation of the operators Deutsche Bahn, SBB, Rail Cargo Group, and wagon owners GATX, Ermewa and VTG.

“The Digital Automatic Coupler represents a significant modernisation for rail freight transport, increasing efficiency and safety while also reducing costs”, commented Transport Minister Steffen Bilger.

“With DAC, work processes become simpler, more digital, and faster. Heavy physical labor is reduced. However, this is contingent on the product convincing users with its features, durability, and price, thus making a Europe-wide conversion economically viable.”

Currently, freight wagons in Europe are mostly coupled together with manual screw couplings. This is a labour-intensive process that also takes a lot of time. The Digital Automatic Coupler could optimise this. Additionally, as the name suggests, it could enable a complete digitalisation of rail freight operations.

Three project types

After many years of research, development and testing, DAC has now “reached a stage of development that allows for large-scale trials under real-world conditions”, says the German transport ministry. It welcomes all parties that want to test DAC in their operations (FL1), conduct further research (FL2) or develop studies on strategic needs, experiences, benefits, risks, resource issues, and implementation tools (FL3).

FL1: DAC Trains FL2: Research, Development and Innovation FL3: Feasibility studies
Project duration Up to 4 years 1–3 years

With an R&D character: up to 4 years

Standard case: less than 1 year
Maximum funding Up to €5 million per project Up to €3 million per project, including all project partners and subprojects

With an R&D character: up to €5 million per project

Up to €1 million per project
Funding rate Maximum 80% of eligible costs Industrial research: 50% of eligible costs

Experimental development: 25% of eligible costs; funding can be increased to up to 80% through additional grants

Maximum 50% of eligible costs; this may be increased through surcharges by up to 20 percentage points

On track towards a responsible DAC policy

The newly generated insights should contribute to a well-informed decision on the Europe-wide implementation of the technology. This is not entirely uncontroversial, considering the substantial costs associated with the projects. It seems highly likely that a large-scale implementation of DAC would lead to billions of euros in costs (in double digits).

Despite DAC’s claimed benefits, the rail freight industry is not particularly keen on bearing the weight of the costs. The sector already has a difficult time staying afloat with the many infrastructure ongoing works and existing expenditures.

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