Stuck on the rail: Unpunctual freight trains as the core problem of the supply chain - solutions and recommendations

The German rail network in freight transport: Capacity bottlenecks and solution strategies for the supply chain

German rail freight transport is at a critical juncture. A structural discrepancy between available infrastructure capacity and steadily increasing transport demand is leading to significant operational shortcomings. These deficiencies have a direct impact on the system's capacity and operational quality. This report analyzes this challenge based on available data and critically evaluates four proposed strategic solutions. The urgency of this analysis is underscored by the German government's overarching climate protection goals and the desired shift of freight traffic to environmentally friendly rail. Strengthening rail freight is a key component in achieving these goals. The report is structured into an analysis of the core problem, an evaluation of the individual solution steps, a synthesis of the results, and concluding strategic recommendations.

Suitable for:

• The logistics challenges of the German rail network and solutions for the future

The challenge facing the German rail network: A growing gap

Shrinking network meets rising demand

The German rail network has undergone a significant reduction since the 1994 railway reform. The total length of the network decreased from approximately 44,600 km in 1994 to its current length of about 39,200 km. The network of Deutsche Bahn (now DB InfraGO AG), the largest operator, shrank even more considerably during the same period, from 40,385 km to approximately 33,350 km at the end of 2024. This corresponds to a reduction of the DB network by approximately 17% to 21%, which aligns with the figure of approximately 21% mentioned in the user query. This reduction included the dismantling of approximately 13,847 km of track and 58,616 switches and crossings on the DB network alone by 2006. Although only a few lines have been closed since 2008, the network length remains significantly below its 1994 level.

At the same time, transport performance in rail freight increased considerably. The user query quantifies the increase in transport performance (in tonne-kilometers, tkm) since 1994 at around 80%. While exact, consistent time series are difficult to reconstruct from the available sources, various data points confirm the trend of a massive increase in performance on a reduced network. In 2019, transport performance reached 129.2 billion tkm. Data for 2023 show 125.4 billion tkm for the larger railway undertakings (RUs), compared to 134.3 billion tkm in 2022. In contrast, the figure for 1994 was 336.8 billion tkm, although the methodology and data basis may differ from the source of the user query. The transport volume in tonnes in 2023 was 337.1 million tons (larger railway undertakings), a decrease compared to 359.0 million tons in 2022 and 366.9 million tons (total survey). Despite these recent declines, the long-term trend of a significantly increased load on the network compared to 1994 persists. Rail's market share of total freight transport (modal split) rose only slowly, from 17.7% in 2012 to 19.8% in 2022, and then fell slightly again to 19.9% ​​in 2023 (based on a different calculation method). This suggests that the overall freight transport market, particularly road freight (+103% from 1991 to 2019), grew more strongly than rail freight could in absolute terms.

This opposing trend – a significantly smaller network having to handle considerably more traffic – represents the fundamental structural problem. The network rationalization implemented after 1994 created a long-term capacity deficit. The fact that the majority of the dismantling took place before 2008, while demand continued to rise and further growth is projected, means that the capacity gap created at that time has not been closed. Rather, it is being continuously exacerbated by the persistently high and potentially increasing demand, leading to accumulating pressure on the remaining infrastructure.

Development of the German rail network length vs. freight transport performance/volume (Selected years 1994-2023)

Development of the German rail network length vs. freight transport performance/volume (Selected years 1994-2023) – Image: Xpert.Digital

The development of the German rail network length in comparison to freight transport performance and volume shows significant changes between 1994 and 2023. In 1994, the total network length was approximately 44,600 kilometers, with the DB network comprising 40,385 kilometers. Rail freight traffic reached 336.8 billion ton-kilometers and a volume of 336.8 million tons. By 2006, the DB network length had decreased to 34,128 kilometers, while freight transport performance fell to 110.8 billion ton-kilometers and the volume increased to 346.1 million tons. In 2019, the total network length amounted to approximately 39,900 kilometers, of which around 33,400 kilometers were DB network. The performance figures were 129.2 and 114.5 billion ton-kilometers, respectively, and 390.8 and 339.1 million tons. In 2022, the total network length was approximately 39,200 kilometers, with DB's network comprising 33,469 kilometers. Freight transport performance reached 134.3 billion ton-kilometers and 124.6 billion ton-kilometers, respectively, with a volume of 386.2 million tonnes and 359.0 million tonnes. In 2023, the total network length remained almost constant at approximately 39,200 kilometers, while DB's network length decreased slightly to 33,350 kilometers. Freight transport performance declined to 125.4 billion ton-kilometers, with a volume of 366.9 million tonnes and 337.1 million tonnes, respectively.

Note: Data for tonne-kilometers and quantity may vary depending on the source (total survey vs. survey of larger companies with cut-off thresholds) and methodology (e.g., inclusion of container weight in the collective agreement from 2005 onwards). Values ​​marked with * are from the survey of larger companies. Value for 2020.

Capacity bottlenecks and traffic jam hotspots

The high utilization of the reduced network inevitably leads to bottlenecks. These are particularly concentrated on the main corridors and major railway hubs such as Cologne, Duisburg, Düsseldorf, and Dortmund. An analysis of the rail network in North Rhine-Westphalia (NRW) has already identified 24 sections with a utilization rate exceeding 110% (severely impaired capacity) and a further 50 sections with a utilization rate between 85% and 110% (at capacity limit). Forecasts predict that this situation will worsen: By 2025, the number of fully utilized and overloaded sections in NRW is expected to rise to 118, with freight traffic seen as the main driver of this growth.

Concrete examples illustrate the problem: The rail line between Cologne Central Station and Cologne-Mülheim has been officially declared congested. On the Cologne Central Station – Cologne Messe/Deutz section, up to 26 trains per hour run in one direction during peak hours. Infrastructural deficiencies, such as a lack of parallel entry points or intersecting tracks due to the route alignment, exacerbate the situation and lead to delays. Deutsche Bahn itself has identified further critical bottlenecks, in addition to the North Rhine-Westphalia hub (Dortmund – Duisburg – Düsseldorf – Cologne), in the hubs of Hamburg, Frankfurt, Stuttgart, and Munich, as well as on the Middle Rhine Valley, Upper Rhine (Mannheim – Karlsruhe – Basel), and Würzburg – Nuremberg lines.

In addition, the available capacity is further restricted by extensive construction work. While this is essential for the urgently needed modernization and renovation of the network, it will lead to short- to medium-term track closures, diversions, and speed reductions, which will directly and negatively impact punctuality and operational quality.

The network, particularly in heavily congested industrial and transit regions like North Rhine-Westphalia, is thus operating at or beyond its capacity limits. Mixed traffic of fast long-distance passenger trains, regional passenger trains, and slower freight trains on the same tracks, along with outdated infrastructure and unfavorable junction layouts, exacerbates capacity problems. The concentration of bottlenecks in a few central junctions and corridors makes the entire system vulnerable. Even minor disruptions, such as a technical defect in a train or signaling system, can quickly spread across the network due to a lack of buffer capacity and alternative routes, leading to widespread delays – a domino effect. Given Germany's central role in European transit traffic, these local bottlenecks and the resulting systemic fragility not only impact national traffic but also potentially affect international logistics chains and the European economy.

Declining operational quality

A direct symptom of the overload and infrastructure deficiencies is the declining operational quality, particularly punctuality. The situation is especially critical in rail freight. DB Cargo's (Germany) punctuality rate in 2023 was only 68.0%, a decline from the already low figure of 70.5% in 2022. Data for the first half of 2024, at 68.1%, indicate no improvement. These figures stand in stark contrast to the overall punctuality of DB trains in Germany (89.4% in 2023) and especially to benchmarks such as the 99% punctuality claimed by the Warsteiner Brewery for its trains. Punctuality in DB's long-distance passenger services is also at a historic low of 64.0% in 2023, suggesting system-wide problems. DB's definition of punctuality means that a train arrives at its destination with less than six minutes' delay.

The main reasons cited for the poor punctuality are the condition of the infrastructure (a high number of slow zones due to track defects, outdated signaling and safety technology with a condition rating of 4.12), the high level of construction activity with often short-notice planning, external events such as extreme weather or strikes, and the general overload of the network. Although the overall condition of the network has recently improved slightly according to DB InfraGO (rating 3.00 instead of 3.03), the infrastructure remains a key weak point.

The lack of reliability and punctuality significantly impairs the attractiveness of rail freight and counteracts efforts to shift traffic to rail. This is also reflected in the significant decline in rail freight volumes in 2023: a decrease of 6.1% in transported tonnes and 6.5% in tonne-kilometers. While economic factors also played a role, the poor operational quality is likely to have been a major contributing factor.

This development suggests a problematic cycle: Past structural underfunding of rail infrastructure has led to a deteriorating condition of the facilities. This poor condition, in turn, causes operational disruptions and poor punctuality, weakening rail's competitiveness compared to road transport and potentially leading to a loss in passenger volume. Reduced performance and market share may have previously made it more difficult to politically justify urgently needed investments. The currently massive increase in investment funds aims to break this cycle. Paradoxically, however, the resulting intensive construction activity exacerbates punctuality problems in the short term before any long-term improvements can be achieved.

Punctuality statistics in German rail transport (selected years)

Punctuality statistics in German rail transport (selected years) – Image: Xpert.Digital

Punctuality statistics for German rail transport show significant differences between the various divisions of Deutsche Bahn for selected years. In 2022, punctuality was 70.5% for DB Cargo, 65.2% for DB Fernverkehr (long-distance passenger services), 91.0% for DB Regio Schiene (regional rail services), and 90.1% for the entire DB Group rail network. In 2023, the figures fell to 68.0% for DB Cargo and 64.0% for DB Fernverkehr, while punctuality remained at 91.0% (adjusted) for DB Regio Schiene and 89.4% for the DB Group rail network. In May 2024, punctuality for DB Fernverkehr was measured at 63.0%. Furthermore, the statistics for the first half of 2024 (H1) showed punctuality rates of 68.1% for DB Cargo, 63.5% for DB Fernverkehr (long-distance passenger services), 92.0% (adjusted) for DB Regio Schiene (regional rail), and 89.9% for the DB Group's rail operations. Deutsche Bahn defines punctuality as a delay of less than six minutes; however, it should be noted that these figures can vary slightly depending on the source and reporting period, and that DB Regio Schiene's punctuality data is sometimes aggregated differently.

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Evaluation of the proposed solutions for revitalizing rail freight transport

Stopping dismantling and reconstruction: Network expansion and reactivation strategies

This first proposed solution directly addresses the core problem of capacity deficit identified in Section 1. The strategy includes halting further network reductions and actively expanding, modernizing, and reactivating disused sections of track.

Several current initiatives indicate the implementation of this strategy:

Massive investments

Significant financial resources are flowing into rail infrastructure. The Performance and Financing Agreement (LuFV III) secures increasing federal funding for the maintenance and modernization of the existing network (an average of €5.6 billion per year after 2025), supplemented by €31 billion from the rail sector over a 10-year period. DB InfraGO AG has announced record investments of €15.2 billion (gross) for 2024. Funding for new construction and expansion projects according to the infrastructure plan is also increasing (to €2.0 billion per year until 2023). An amendment to the Federal Railway Expansion Act (BSWAG) is intended to enable higher and faster federal investments by allowing the federal government to assume additional cost shares, for example, for maintenance, digitalization, or noise abatement.

Modernization and renewal

A key focus is on the modernization of existing infrastructure. In recent years, thousands of kilometers of track and switches have been renewed. The comprehensive modernization program aims to fundamentally upgrade a total of 40 heavily used corridors by 2030, starting with the Riedbahn line between Frankfurt/Main and Mannheim in July 2024. The goal is to increase the network's resilience and reduce disruptions caused by outages. DB InfraGO is committed to halting the aging of the infrastructure.

Expansion and new construction

Over 200 major infrastructure projects are in the planning or construction phase. By 2030, 744 kilometers of track are to be newly constructed or upgraded. Important projects include line upgrades such as the Karlsruhe–Basel line, the Rhine-Ruhr Express (RRX), the hinterland connection of the Fehmarn Belt Fixed Link, the three-track expansion of the Emmerich–Oberhausen line, and the expansion of key hubs such as Cologne, Frankfurt, Hamburg, and Munich.

Route reactivation

The reactivation of disused railway lines is recognized as a tool for promoting climate protection and improving connectivity in rural areas. The Association of German Transport Companies (VDV) and the Alliance for Rail have proposed 325 lines with a total length of 5,426 km for reactivation, which could reconnect 379 towns and municipalities to the rail network. Deutsche Bahn has established its own "Route Reactivation Task Force" and systematically reviews proposals; an initial portfolio of 20 lines was identified in 2021. Reactivations are also being considered within the framework of the Deutschlandtakt (Germany-wide integrated timetable), and federal funding programs exist.

Germany Clock-Face Timetable

This concept serves as a strategic framework for infrastructure development. It defines the infrastructure requirements of future passenger and freight transport to enable an optimally coordinated, timed timetable. The timetable thus dictates the development goals, not the other way around.

Modernization of the railway: Physical expansion and digital disruption in lockstep

There is thus a clear political and corporate commitment to reversing the trend of network neglect. The instruments – massive investments, targeted refurbishment and expansion programs, and reactivation – are available and being used. Focusing on heavily used corridors addresses the most critical bottlenecks, while reactivation offers potential for increasing network density and connecting rural areas. The Deutschlandtakt (Germany-wide integrated timetable) provides the strategic direction.

The challenges, however, are immense. The investment required is enormous, and despite the increased funding, there are indications of potential financing gaps for projects included in the needs assessment plan. Planning and approval processes are often lengthy. Furthermore, the construction work itself causes significant disruption to ongoing operations. A clear prioritization of measures, as demanded by experts, is crucial for success.

Although the strategic direction, with concepts such as the Deutschlandtakt (Germany-wide integrated timetable), comprehensive refurbishment, and reactivation, clearly aims to solve the identified problems, noticeable improvements will only occur in the medium to long term. The immediate future is expected to continue to be characterized by construction sites and the associated service disruptions. This could temporarily worsen service quality before the positive effects of modernization take hold. Effective management of this transition phase is therefore of paramount importance.

Alongside physical expansion, digitalization plays a crucial role in increasing capacity. The introduction of the European Train Control System (ETCS) and digital interlocking systems (DSTW) enables shorter train intervals and more flexible operations. The BSWAG amendment explicitly addresses the financing of IT services, and the "Digital Rail Germany" program directly aims to increase capacity. This underscores that a purely physical expansion of the network is insufficient. The integration of digital technologies must occur in parallel to maximize the benefits of investment and potentially achieve faster capacity increases than through construction measures alone. However, digitalization also faces significant challenges regarding financing and nationwide implementation.

Dual-use logistics: Exploring the potential of shared infrastructure

The second proposed solution introduces the concept of “dual-use logistics,” combined with “DU-logistics².” The term “dual-use” traditionally refers to goods or technologies that can serve both civilian and military purposes. Regulation focuses heavily on export controls to prevent misuse for military purposes, terrorism, or the proliferation of weapons of mass destruction.

Modern interpretations, such as that of the MIT Mix, view “dual-use” not merely as a product category, but as a business strategy. This strategy involves consciously operating in both commercial and governmental or military markets, which places specific demands on product development, financing, and navigating regulatory frameworks.

According to available information, the term “DU-Logistik²” stands for “Double Dual-Use Logistics” and describes the integration of rail and road infrastructure for combined civilian and military logistics purposes. The REGIOLOG SÜD project serves as a concrete pilot project for this concept. It envisions the construction of a state-of-the-art, automated regional high-bay warehouse (HBW) with a container buffer in southern Baden, connected to both the rail and road networks. In peacetime, this warehouse is intended to ensure civilian supply (e.g., to rural areas, e-commerce) and, in the event of a crisis or national defense emergency, can be quickly repurposed for military logistics tasks (storage and distribution of materials and supplies). Its proximity to key Bundeswehr (German Armed Forces) locations is cited as an advantage. The goal is to create a network of such centers (“ZivLog-D”) to strengthen the resilience of the German economy and its defense capabilities.

This concept enables the multiple use of expensive logistics infrastructure. Potential benefits include better utilization of facilities, possible cost sharing between civilian and military budgets, and strengthened national resilience through secure supply chains and additional capacity for defense logistics. Standardization of processes, possibly using GS1 standards (see section 2.3), could also be promoted.

However, challenges exist in the high security requirements (physical and digital) for military assets, potential conflicts in prioritizing resources during crises, the complex integration of civilian and military IT systems and process standards, and the need for public acceptance. A clear distinction between genuine dual-use functionality and merely spatially grouped but separate civilian and military facilities is required.

The core benefit of concepts like DU-Logistik² and REGIOLOG SÜD lies in increasing national resilience. The planned flexibility of the infrastructure, which enables rapid switching between civilian and military use, creates redundancy for military logistics, as there is less dependence on purely military depots. At the same time, civilian supply chains can benefit from the integration of robust and secure infrastructure elements.

Suitable for:

• Du logistics² | Double dual-use logistics: integration of rail and street for civil and military purposes

GS1 DataMatrix: A logistics turbocharger?

The third proposed solution focuses on the use of the GS1 DataMatrix code to optimize logistics, particularly in the military sector and in maintenance.

The GS1 DataMatrix is ​​a two-dimensional barcode based on the Data Matrix ECC 200 and is part of the global GS1 standard system. Its technical characteristics make it particularly suitable for demanding logistics applications

• High information density in the smallest area: It can encode large amounts of data in a very small area (e.g., GTIN on < 5×5 mm).
• Robustness and fault tolerance: The code can still be read even with damage of up to 30% and requires only low contrast.
• Omnidirectional readability: It can be scanned from any direction (360°).
• Direct Part Marking (DPM): The code can be permanently laser-etched, needle-etched or etched directly onto components, enabling marking for decades, even under harsh conditions.

Integration into the GS1 system is crucial. By using GS1 Application Identifiers (AIs), the coded data is standardized and structured (e.g., product identification GTIN, serial number, batch, expiration date, location number GLN, transport unit SSCC, fixed asset GIAI). A special control character (FNC1) signals GS1 compliance and enables the correct interpretation of the data by scanning systems. This creates interoperability across company and industry boundaries.

Suitable for:

• Logistics transformation for safe shipping-as DataMatrix codes accelerate the general cargo handling-faster and more precisely

The GS1 DataMatrix is ​​explicitly used in the military sector. According to the German Armed Forces' Technical Delivery Specification TL A-0032, supplies must be uniquely and permanently marked using GS1 data carriers (GS1-128 or GS1 DataMatrix where space is limited). This enables clear identification of components, digital data linking, and, as described in the Telemaintenance concept, can accelerate repair processes and improve operational readiness. Examples include its use by MBDA Germany for the maintenance of guided missile systems and applications by the US Army. The REGIOLOG SÜD concept is also likely to rely on this technology for tracking military assets.

In the rail sector, the use of GS1 standards, including the GS1 DataMatrix (especially via DPM), is becoming increasingly important for maintenance logistics. The goal is the unambiguous traceability of (safety-)relevant parts and components throughout their entire lifecycle – from manufacturing through the supply chain and operation to maintenance and scrapping. This enables improved lifecycle management, optimized (predictive) maintenance, more efficient defect and warranty management, better supplier management, and enhanced protection against counterfeiting. Successful application examples can be found at companies such as Schaeffler (marking of wheelset bearings for SBB), HFG (marking of remanufactured rolling bearings), ContiTech (marking of air spring systems), and Siemens Mobility (introduction of standardized GS1 labels). The data exchange standard EPCIS (Electronic Product Code Information Services) also allows for the cross-company tracking of events in a component's lifecycle.

The claim that the GS1 DataMatrix is ​​a “logistics turbocharger for the military” seems plausible given the advantages of standardized, robust, and unambiguous identification for maintenance, spare parts management, and operational readiness, especially in conjunction with digital tools such as telemaintenance. Similarly, the optimization of maintenance logistics in the railway sector (“less downtime”) is a clear benefit, supported by practical examples, leading to higher availability of rail vehicles and potentially lower costs.

Standardized identification using GS1 DataMatrix or other GS1 data carriers is more than just an efficiency tool; it forms the indispensable basis for further digitalization and automation efforts in logistics. It enables the reliable creation of digital twins of components and systems, the effective application of telemaintenance and predictive maintenance, the control of automated warehouse systems (as envisioned in the REGIOLOG SÜD concept), and potentially automated inspection and repair processes. Without unambiguous, machine-readable, and reliable identification at the individual component level, these advanced concepts cannot be effectively implemented.

The use of a common standard system like GS1 across different domains (military, rail, industry in general) also unlocks potential synergies. Components used in both the civilian rail sector and potentially in the military sector (dual-use components) could be tracked seamlessly with the same system. This interoperability, promoted by GS1, simplifies logistics, reduces the need for parallel tracking systems, and can improve data exchange between sectors, for example, for maintenance optimization or increased transparency in supply chains.

Suitable for:

• The future of maintenance logistics: Synergies between telemaintenance and GS1 DataMatrix

Transformation towards intermodal trains

Transformation to intermodal trains: Lessons from the Warsteiner example and beyond

The fourth step proposes a greater shift towards intermodal trains and cites the Warsteiner Brewery as an example of its high punctuality. Intermodal transport refers to the transport of goods in standardized loading units (such as containers, swap bodies, or semi-trailers) using at least two different modes of transport (e.g., road, rail, ship), whereby the loading unit itself is transshipped, but not the goods within it. Combined transport (CT) is a specific form of intermodal transport in which the main leg is by rail or waterway, and the road is used only for the short pre- and post-carriage ("first/last mile").

The Warsteiner brewery has operated its own container terminal with a rail connection on its factory premises since around 2005. According to the company, the initial motivation was the owner's desire to reduce the environmental impact of truck traffic in the town of Warstein, as well as the expectation of lower transport costs in the long term. The investment of approximately €30 million was partially publicly subsidized, but was not immediately profitable. Warsteiner transports beer in containers by rail to key distribution centers in Germany (e.g., Munich, Hamburg) and as far as Verona in Italy.

A key element of the Warsteiner model is maximizing train capacity utilization to offset the high fixed costs of rail transport. The brewery achieves this by transporting not only its own products (beer, empty containers) but also freight for other companies, both on return and outbound journeys, to avoid empty runs. The ratio of its own to third-party goods varies depending on the route (e.g., 80/20 southbound, 20/80 to Hamburg). The subsidiary BOXX Intermodal Logistics was founded to market these logistics services. Despite the success of rail transport, Warsteiner does not completely abandon trucks, which are still needed for flexible deliveries, promotional merchandise, and last-mile distribution.

The most remarkable result is Warsteiner's reported punctuality of its trains at 99%. This stands in stark contrast to the punctuality of DB Cargo at around 68% or DB Fernverkehr at 64% in 2023. Warsteiner describes its rail transport business as profitable.

The Warsteiner example impressively demonstrates that privately organized, intermodal rail transport with high punctuality and profitability is possible, even if it requires significant initial investment. Key factors for this success appear to be control over its own infrastructure (terminal), a consistent focus on high train utilization through the integration of third-party business, and possibly operational management or contracts that ensure high reliability and priority on the network.

In general, intermodal transport offers significant advantages: it reduces CO2 emissions, relieves roads of truck traffic and congestion, can offer cost advantages for mass transit, and improves working conditions for truck drivers (rest periods, avoidance of tolls/driving bans). Government subsidies for terminals and certain operational facilitations (e.g., 44-ton weight limit for pre- and post-carriage, exemptions from driving bans) support intermodal transport. However, challenges remain, including the often higher fixed costs compared to road transport, the complexity of coordination between various stakeholders (freight forwarders, operators, railways, terminal operators), the need for efficient transshipment terminals, and the dependence on the quality of the underlying rail network. Growth is projected, but the sector is struggling with difficult market conditions. Improving accessibility for small and medium-sized enterprises (SMEs) is a key task.

Warsteiner's exceptionally high punctuality compared to general rail freight suggests that it depends heavily on control over its own specific logistics chain. Warsteiner, through its own terminal and potentially dedicated train services or prioritized handling within the network, can circumvent some of the disruptions and capacity bottlenecks that plague general traffic on the public network (see Section 1). This implies that high reliability in intermodal transport either requires similarly controlled environments (which is unrealistic for most shippers) or fundamental improvements in the stability, capacity, and prioritization mechanisms of the entire public rail network. Simply shifting to rail does not guarantee punctuality if the underlying system is overloaded and prone to disruption.

The Warsteiner example, particularly the establishment of BOXX Intermodal Logistics and the transport of third-party goods, illustrates how a major anchor shipper's investment in intermodal infrastructure can create a platform from which other regional companies also benefit. This supports the idea of ​​consolidating the transport operations of smaller companies and developing regional logistics hubs. Successful intermodal terminals can thus become catalysts for broader regional economic development and improved logistics efficiency that extends beyond the benefits for the original investor.

Promoting innovation in intermodal transport

Building on the potential of intermodal transport, this step aims to further increase its efficiency, accessibility and attractiveness through technological and procedural innovations.

Key areas of innovation include:

Terminal operations and handling technologies

• Automation: The use of autonomous vehicles in terminal operations promises increased efficiency. The ANITA (Autonomous Innovation in Terminal Operations) research project successfully tested the use of autonomous trucks for container handling at the DUSS terminal in Ulm and demonstrated potential productivity increases of up to 40%. Work is also underway on fully automated shunting locomotives (the VAL project by DB Cargo and Bosch). These technologies can reduce manual processes, increase handling speed, and improve safety.
• Handling technologies for non-craneable semi-trailers: Since a large portion of the European trailer fleet is not craneable, innovations for their loading are crucial to fully exploiting the market potential of combined transport. Examples include the Helrom system with swiveling wagon platforms (in use on the Regensburg-Verona route), the CargoBeamer system with laterally sliding wagon pallets, and the Modalohr system with swiveling wagon beds. These systems enable the loading of standard semi-trailers without special modifications. Further innovations include specialized container or wagon systems such as the ContainerStation-3000 from Innovatrain for rapid swap body handling, or flexible wagon concepts like the InnoWaggon from Innofreight.

Digitalization and platforms

• Digital booking and management platforms: To simplify access to combined transport, especially for SMEs, digital platforms are emerging that transparently match supply and demand and simplify the booking process. Examples include Modility and Rail-Flow's Intermodal Capacity Broker (ICB). The goal is to make booking combined transport as easy as ordering a truck. Integrating these platforms into existing transport management systems (TMS) of shippers and freight forwarders is crucial.
• Data exchange and transparency: End-to-end digitalization requires standardized data formats and interfaces for information exchange between all participating stakeholders. Concepts such as digital twins of transport units or cargoes, the use of IoT sensors for monitoring the condition of freight, and potentially blockchain technology for secure and transparent data flows all play a role here. The establishment of electronic consignment notes (eCMR) simplifies documentation. Improved shipment tracking (tracking and tracing) increases transparency for customers.
• Digital infrastructure: Advanced communication infrastructure (e.g., 5G) is a prerequisite for many automation and real-time applications. The digitization of terminals and their intelligent integration with central network management (e.g., Capacity and Traffic Management System, CTMS) are also necessary.

Rail technology

• Digital Automatic Coupler (DAC): The DAC is considered a key technology for revolutionizing rail freight transport in Europe. It enables the automatic coupling and uncoupling of freight wagons while simultaneously establishing power and data connections. The expected benefits are enormous: faster train formation in marshalling yards, resulting in shorter transport times and higher network capacity; potential for continuous train monitoring (train completeness and integrity), which in the long term could eliminate the need for fixed track sections and axle counters, enabling more dynamic train sequences; improved occupational safety for shunting personnel; and support for fully automated train operation. Following successful Europe-wide trials, the goal is now to achieve series production readiness, with the aim of equipping the first pioneering trains by 2026. However, converting the entire European wagon fleet (over 500,000 wagons) presents a massive financial and logistical challenge.
• Automated Train Operation (ATO): ATO via ETCS (Automatic Train Operation over European Train Control System) enables the automated operation of trains. Optimized acceleration and braking can reduce energy consumption and wear, and potentially increase track capacity through shorter headways. There are various levels of automation (GoA), with GoA4 representing driverless operation. While development is more advanced in passenger transport (especially metros and pilot projects in regional transport), ATO is also relevant for freight transport. Implementation requires a high-performance communication infrastructure (FRMCS/5G) and advanced sensor technology for environmental perception, particularly for higher levels of automation.
• Innovative freight wagons: Developments aim for lighter, more flexible and more energy-efficient wagon designs to increase payload and reduce operating costs.

In summary, a wide range of innovations exist that have the potential to fundamentally improve intermodal transport. These range from specific terminal technologies and digital platform solutions to systemic changes in rail technology.

Many of these innovations, however, are interdependent and only reach their full potential when combined. For example, fully automated train operation (ATO GoA4) requires the DAK for automated shunting operations as well as a high-performance digital infrastructure. Automated terminals need seamless digital integration with booking platforms and, ideally, with automated train dispatching systems. This underscores the need for a holistic approach that coordinates and drives forward the various technological developments.

Although technologies such as DAK, ATO, and automated terminals theoretically promise significant efficiency and capacity gains, their successful implementation faces major hurdles. These include the immense investment costs (especially for DAK upgrades), the need for Europe-wide standardization (DAK, ETCS/ATO), the creation of suitable legal and regulatory frameworks (especially for ATO GoA4), and ensuring interoperability between systems from different manufacturers and operators. The path from promising pilot projects to widespread operational application across the entire network is therefore still long and requires careful planning, sustainable financing, and strong international cooperation.

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Synthesis and Strategic Recommendations: Innovative Impulses for Resilient Logistics in the Rail Sector

The analysis confirms the core thesis formulated in the user query: German rail freight suffers from a structural capacity deficit resulting from the historical reduction of the network coupled with increased demand. This leads to congestion, particularly at hubs and on main corridors, and manifests itself in inadequate operational quality, especially regarding punctuality. This situation hinders the achievement of the targeted modal shift goals and harms the competitiveness of rail.

The evaluation of the four proposed solutions reveals a differentiated picture:

Network renovation and expansion

This is the fundamental prerequisite for addressing the capacity deficit. The measures already initiated (investment drive, comprehensive refurbishment, expansion, reactivation) are necessary and a step in the right direction, but require a long-term perspective, sustainable financing, and intelligent management of the short-term consequences of construction work. At the same time, the digitalization of the infrastructure (ETCS/DSTW) is essential.

Dual-use logistics

An innovative concept for increasing resilience and potential cost sharing between civilian and military needs. Its feasibility requires clear regulations for security and prioritization.

GS1 DataMatrix

An established and robust technology that has demonstrably increased efficiency in (military and civilian) maintenance logistics. It acts as an important enabler for more comprehensive digitalization and automation strategies through standardized, unambiguous identification.

Intermodal transport – Innovations in intermodal transport

The Warsteiner example demonstrates the high potential for efficiency and punctuality in optimized, well-managed systems. However, transferring this success to the general network requires significant improvements in network quality and capacity, as well as simplified accessibility, especially for SMEs.

A wide range of promising technologies exist (terminal automation, handling techniques, digital platforms, DAK, ATO) that can increase efficiency and capacity. However, their implementation is complex, costly, and requires coordinated efforts in standardization, regulation, and financing.

The four solution approaches should not be considered in isolation, but rather are closely interdependent and synergistic. Network improvement (Step 1) is the foundation for the successful implementation of dual-use concepts (Step 2), the scaling of intermodal transport (Step 4), and the introduction of many other innovations. Standardization through GS1 (Step 3) is a key prerequisite for digitalization and automation, as well as for efficient dual-use processes (Step 2). Intermodal transport (Step 4) provides the operational framework for many of the other innovations mentioned. Dual-use logistics (Step 2) can benefit from improved intermodal capabilities (Steps 4 & 5) on a more efficient network (Step 1). Significant progress therefore requires an integrated strategy that addresses multiple fronts simultaneously.

Suitable for:

• Hybrider, multimodal logistics traffic (road rail) in Germany with civil-military double use

Strategic recommendations

Based on the analysis, the following recommendations for action are made for the relevant stakeholders:

For politics (BMDV, Bundestag, EU)

Secure and accelerate financing

Secure long-term financing for network rehabilitation, expansion, and modernization (Step 1) and make it permanent beyond current programs. Prioritize bottleneck removal.

Accelerate planning

Further streamline and accelerate planning and approval processes for infrastructure projects.

Promoting European standards and financing

Actively promote the Europe-wide standardization and financing of key technologies such as DAK and ETCS/ATO (Step 5).

Creating a regulatory framework

Develop and implement clear legal frameworks for advanced automation (e.g., ATO GoA4).

Promoting dual-use

Support the development of dual-use logistics concepts and define clear guidelines for security, prioritization and interfaces.

Continue KV funding

Further develop and equip existing funding programs for intermodal terminals and innovations in rail freight transport (combined transport funding guidelines, future of rail freight transport) according to demand.

Digital health insurance platforms support

Promote the establishment and use of digital platforms to simplify access to combined transport (Step 5).

For DB InfraGO AG

Efficiently implement construction projects

Carry out the general refurbishment and expansion projects (step 1) quickly and efficiently, minimizing the operational impact through optimized planning (e.g. SB² concept), bundling of measures and transparent communication.

Accelerating digitalization

Accelerate the rollout of digital control and safety technology (ETCS/DSTW) in parallel with the physical construction measures (steps 1 & 5).

Actively shaping reactivation

Actively support and promote the implementation of identified route reactivation projects (Step 1).

Preparing for DAK implementation

Actively participate in the Europe-wide DAK rollout and prepare the network and processes to meet the requirements of DAK (Step 5).

Improve network management

Optimize capacity and traffic management (e.g., through CTMS) to improve reliability and capacity utilization, especially during the reconstruction phase.

Supporting standardization

Actively participate in the development and implementation of standards (GS1, DAK, ETCS etc.).

For operators (DB Cargo, private railway undertakings, intermodal operators)

Fleet modernization

Invest in DAK-compatible freight wagons and ATO-prepared locomotives.

Implementing GS1 standards

Consistently use GS1 standards for the identification and tracking of assets (wagons, locomotives) and shipments (Step 3).

Leveraging innovations

Use innovative handling technologies and digital platforms to increase your own efficiency and improve customer service (Step 5).

Optimize processes

In cooperation with other stakeholders, optimize processes in terminals and along the transport chain and improve data exchange.

Quality initiative

Focus on service quality, reliability, and punctuality to regain and maintain customer trust.

For shippers and freight forwarders

Examine intermodal options

Actively examine the use of intermodal transport solutions (step 4) and use digital booking platforms (step 5).

Communicate requirements

Clearly communicate service requirements to operators and support standardization efforts (e.g. GS1).

Holistic assessment

When choosing the mode of transport, long-term aspects such as environmental impact, reliability and resilience should be considered in addition to costs.

For technology providers

Develop robust and interoperable solutions

Further development of robust, interoperable systems for automation (terminals, trains), digitization (platforms, sensors) and handling technologies (step 5).

Ensure compliance with standards

Ensure consistent adherence to and support of established and future standards (GS1, ETCS, DAK).

Seeking cooperation

Work closely with infrastructure operators and transport companies in the development, testing and implementation of new technologies.

Four steps towards transforming the German freight rail network

German rail freight faces immense challenges resulting from decades of network dismantling coupled with increasing demand. The system is overloaded in many areas, leading to significant operational deficiencies and jeopardizing the desired shift of freight traffic to rail.

The analyzed four-step strategy offers a comprehensive, albeit complex and resource-intensive, approach to managing this crisis. The steps are closely intertwined and require coordinated implementation. The rehabilitation and expansion of the network form the foundation upon which technological innovations, improved operating concepts such as intermodal transport, and new approaches like dual-use logistics can be built. Standardized identification technologies such as the GS1 DataMatrix are essential enablers for the necessary digitalization and automation.

The path to revitalizing German rail freight will be challenging and will require a concerted effort from all stakeholders – policymakers, infrastructure operators, transport companies, shippers, and technology providers. Sustainable investments, the consistent implementation of innovations, the establishment of Europe-wide standards, and a focus on operational excellence are essential. If these goals are achieved, however, there is a realistic chance of making rail freight in Germany fit for the future and securing and expanding its important contribution to economic performance, national resilience, and climate protection.

Markus Becker

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Konrad Wolfenstein

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