In step with Euro­pe and with sub­stan­ti­al à fonds perdu finan­cing, the migra­ti­on to DAK will suc­ceed. We at the VAP are joi­ning forces with the BAV, VöV, part­ner com­pa­nies and coor­di­na­ted with Euro­pean insti­tu­ti­ons to deve­lop the pro­ject for the digi­ta­li­sa­ti­on and auto­ma­ti­on of Swiss rail freight trans­port. In this blog artic­le we pre­sent a cur­rent overview.

This is what it’s all about:
  • Why DAC migra­ti­on is so important for Swiss rail freight.
  • What rea­li­stic and fair finan­cing must look like.
  • How a smooth, cross-bor­der migra­ti­on of DAC can be achieved.

In Switz­er­land, the poli­ti­cal dis­cus­sion on the future of rail freight trans­port has been initia­ted. Until mid-Febru­ary 2023, the fede­ral govern­ment will con­sult on the ques­ti­on: how much freight trans­port by rail do we want in the future? A key ele­ment of this is the com­pre­hen­si­ve moder­ni­sa­ti­on of rail freight trans­port by means of a modern digi­tal auto­ma­tic cou­pling (DAC) – this is inten­ded to com­pre­hen­si­ve­ly renew pre­vious labour-inten­si­ve and time-con­sum­ing work pro­ces­ses in rail freight trans­port. Thanks to digi­ta­li­sa­ti­on and auto­ma­ti­on, rail freight trans­port should then beco­me more effi­ci­ent, more powerful and thus more com­pe­ti­ti­ve, and in future play a lea­ding role in mul­ti­mo­dal logi­stics. The inno­va­ti­on of rail freight trans­port is a Euro­pean mat­ter, as Switz­er­land is part of the inter­ope­ra­ble Euro­pean rail­way net­work. Trans­ports should also con­ti­nue to take place across bor­ders wit­hout obs­ta­cles. This is why Swiss com­pa­nies are actively invol­ved in the EU’s Europe’s Rail inno­va­ti­on programme.

We would like to take this oppor­tu­ni­ty to give you an inte­rim update on our cur­rent work and challenges.

General

The VAP is com­mit­ted to very close coor­di­na­ti­on with the Euro­pean pro­ject – Euro­pean DAC Deli­very Pro­gram (EDDP) of Europe’s Rail. Why?

Euro­pean freight trans­port urgen­tly needs com­pre­hen­si­ve inno­va­ti­on to be able to sur­vi­ve in the high­ly com­pe­ti­ti­ve trans­port sec­tor in the future or to be part of a modern sup­p­ly chain – the DAC is the key pro­ject for this.
Most wagon fleets are used or ren­ted out inter­na­tio­nal­ly and accor­din­gly the migra­ti­on must be coor­di­na­ted across bor­ders.
The tech­ni­cal spe­ci­fi­ca­ti­ons, which are defi­ned at EU level, apply to all count­ries and must also be appli­ed in Switz­er­land.
A com­mon purcha­sing poli­cy for the new cou­plings helps to redu­ce the unit price and one can fall back on uni­form requi­re­ments.
The chal­lenges – with a few excep­ti­ons – are iden­ti­cal in many count­ries. Regar­ding the migra­ti­on time­line, there are major dif­fe­ren­ces.
Inter­na­tio­nal coor­di­na­ti­on means opti­mal use / deploy­ment of limi­t­ed resour­ces and experts.

In Switz­er­land, we are curr­ent­ly focu­sing on important preli­mi­na­ry work for the con­cre­ti­sa­ti­on of the over­all migra­ti­on and also on the con­tents for the mes­sa­ge, which will be the basis for the imple­men­ta­ti­on of the migration.

Financing

VöV, VAP and SBB, as important repre­sen­ta­ti­ves of the rail­way indus­try, agree that such a large invest­ment for the DAC migra­ti­on must be sup­port­ed with appro­pria­te finan­cing tools and mechanisms.

There is agree­ment that a pre­do­mi­nant “à fonds perdu” par­ti­ci­pa­ti­on of the fede­ral govern­ment and sup­ple­men­ta­ry inte­rest-free loans are neces­sa­ry. Fur­ther­mo­re, the VAP in par­ti­cu­lar repea­ted­ly poin­ted out the need for a clean cost-bene­fit balan­ce. It ulti­m­ate­ly found its way into the agree­ments on the DAC with the BAV. As is well known, the invest­ments in the DAC migra­ti­on are main­ly incur­red by the vehic­le owners, while the bene­fits will only mate­ria­li­se much later after full imple­men­ta­ti­on. On the one hand, it is the­r­e­fo­re neces­sa­ry to regu­la­te the lon­ger phase of pre-finan­cing until the bene­fits begin to accrue. Above all, howe­ver, the bene­fits will be felt first and fore­most by the rail­way under­ta­kings (RUs) and the infra­struc­tu­re mana­gers (IMs). They will bene­fit from more effi­ci­ent pro­ces­ses, whe­re­as vehic­le owners will see litt­le bene­fit. The invest­ment must be borne joint­ly by the actors in accordance with the poten­ti­al bene­fits. In view of the mar­ket con­di­ti­ons, it will only be pos­si­ble to a limi­t­ed ext­ent to gene­ra­te this pro­cess through hig­her ren­tal inco­me. The finan­cing con­cerns a time span of at least 15 years. Con­se­quent­ly, we sug­gested that the draft law should defi­ne appro­pria­te mecha­nisms for joint finan­cing accor­ding to the actu­al bene­fits that accrue, in a bin­ding and fair man­ner for all par­ties invol­ved, on the basis of “cost-bene­fit analyses”.

To this end, the VAP – tog­e­ther with the umbrel­la orga­ni­sa­ti­on of the UIP – will con­tri­bu­te data and facts on invest­ment and cost/benefit plan­ning and actively participate.

The con­cre­te finan­cing moda­li­ties within the EU are still open at pre­sent; solu­ti­ons still have to be found in par­ti­cu­lar regar­ding the par­ti­ci­pa­ti­on of the EU and the mem­ber states.

Engineering

For a suc­cessful and effi­ci­ent imple­men­ta­ti­on of the DAC migra­ti­on, com­pe­tent engi­nee­ring is requi­red, which defi­nes the con­ver­si­on mea­su­res for the spe­ci­fic fleet, pro­vi­des the tech­ni­cal spe­ci­fi­ca­ti­ons for the orders and the con­ver­si­on work, and defi­nes the veri­fi­ca­ti­on for qua­li­ty assu­rance. In the coming months, the Euro­pean EDDP pro­gram­me will work tog­e­ther to deve­lop the neces­sa­ry foun­da­ti­ons. On this basis, the pre­re­qui­si­tes for the natio­nal DAC migra­ti­on must be work­ed out.

Migration

Each coun­try must carry out exten­si­ve pre­pa­ra­to­ry work so that the infor­ma­ti­on and basics are available at time X of effec­ti­ve imple­men­ta­ti­on. Accor­din­gly, the pro­ject deals with the fol­lo­wing ques­ti­ons, among others:

Deter­mi­na­ti­on of work­shop capacities

  • Neces­sa­ry “pop-up” workshops
  • Neces­sa­ry resources

Owner-spe­ci­fic plan­ning of the conversion

  • Vehic­le type and fleet sizes
  • Cri­ti­cal ele­ments and pos­si­ble solu­ti­ons in coope­ra­ti­on with EDDP
  • Owner-spe­ci­fic scheduling

Data and infor­ma­ti­on pool

  • Updating the vehic­le regis­ter as a basis for funding
  • Time­ly pro­vi­si­on of infor­ma­ti­on to indi­vi­du­al actors / stake­hol­der groups

Mate­ri­al pool

  • Pro­cu­re­ment of com­pon­ents for DAC migration
  • Plan­ning of mate­ri­al quan­ti­ties and deli­very dates
  • Coor­di­na­ti­on of mate­ri­al flows to the con­ver­si­on workshops
  • Ensu­ring sup­port in ope­ra­ti­on (repair material)

Curr­ent­ly we see a focus on the loco­mo­ti­ves to be con­ver­ted, as these are pri­ma­ri­ly on natio­nal rou­tes in the WLV and must be equip­ped with DAC trains at the start of operation.

In Switz­er­land, as is alre­a­dy the case with SBB-Cargo, fur­ther “pilot trans­ports” will be plan­ned as early as pos­si­ble in order to be able to intro­du­ce the resul­ting fin­dings and results at EU level and to be able to advan­ce the pro­ject as a whole.

Organisation

On the one hand, the VAP has increased the resour­ces in the Gene­ral Secre­ta­ri­at, on the other hand it is repre­sen­ted with its mem­bers in various natio­nal and inter­na­tio­nal mee­tings and working groups.

For the future or the effec­ti­ve imple­men­ta­ti­on we see some chal­lenges in the design and staf­fing of the over­all orga­ni­sa­ti­on – be it in the inter­na­tio­nal con­text (where is which aspect coor­di­na­ted or also moni­to­red) as well as in the cross-sec­to­ral orga­ni­sa­ti­on of Swiss DAC migration.

Did you know that…
  • …wit­hout DAC, no freight train – WLV, block train or Rola – will be able to run on fully equip­ped ETCS Level 3 (Euro­pean Train Con­trol Sys­tem) lines in future, as the tech­ni­cal requi­re­ments, espe­ci­al­ly train inte­gri­ty, are not met. The infra­struc­tu­re upgrade to ETCS Level 3 will main­ly take place on busy main lines and will enable an increase in capa­ci­ty with the dyna­mic block. Allo­wing trains to con­ti­nue to run wit­hout train inte­gri­ty on sec­tions of line ope­ra­ted in this way will invol­ve a great deal of effort.
  • …the DAC will be an important com­po­nent for digi­tal data exch­an­ge and sus­tainable logi­stics, in the sense of cus­to­mers and the cli­ma­te, can only be rea­li­sed with the par­ti­ci­pa­ti­on of all play­ers. This is the reason why the VAP is in any case com­mit­ted to the rea­li­sa­ti­on of a data plat­form based on “MODIG”. With DAC we achie­ve an increase in effi­ci­en­cy of the enti­re “sup­p­ly chain”.
  • …DAC will allow the tra­di­tio­nal WLV to be run more effi­ci­ent­ly and will help to make it self-sus­tai­ning at the latest after the migra­ti­on has been completed.

→ To learn more about the DAC pro­gram­me, click on: https://rail-research.europa.eu/european-dac-delivery-programme/

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