As part of the renewal, the wagons will be retrofitted with VTG’s iWagon technology, providing real-time data on wagon condition, location, and performance. The upgrade is intended to support operational efficiency and safety, while improving visibility across Breedon’s logistics network. The move reflects wider industry trends towards digitalisation and predictive maintenance in European rail freight.

Digital upgrade for established fleet

The 72 JPA wagons are designed for bulk cement transport and are equipped with TF25A low-noise bogies. Each wagon operates at a gross laden weight of 101 tonnes and can carry an 81-tonne payload. The fleet currently handles more than 1.5 million tonnes of cement annually, linking production at Hope with a network of satellite rail depots.

Retrofitting the existing wagons with iWagon technology is expected to enhance monitoring of safety-critical components and provide operational data in real time. For bulk materials flows, where reliability and timing are essential, such insights can support more efficient asset utilisation and reduce unplanned downtime across core routes.

Supporting long-term rail logistics

“Securing this 15-year agreement is a powerful endorsement of our partnership with Breedon and the long-term value rail freight delivers,” said Matt Hannant, VTG Rail UK’s Head of Sales & Marketing. “By equipping their existing JPA fleet with iWagon technology, we’re combining long-term commitment with cutting-edge data insight – driving smarter, safer and more sustainable benefits across their supply chain for years to come.”

The agreement reflects continued investment in rail-based cement distribution. It is a niche sector where rail freight has shown growth and consistent volumes. The nature of the payload and fixed flows favour rail over road. VTG say that not only in the UK, but also across Europe, construction supply chains are increasingly seeking lower-emission transport options, with rail positioned as a key component of decarbonisation strategies.

New wagons entering service

The renewal follows the recent introduction of new-build wagons equipped with the same digital technology. VTG delivered the first 18 JPA iWagons into service for Breedon in January, forming part of a wider order for 62 units. These wagons are being deployed across Breedon’s core network to support growing demand.

The remaining 44 wagons from the order are scheduled to enter service over the next 10 months. Together with the upgraded existing fleet, this will expand the proportion of digitally enabled assets in Breedon’s rail operations, offering greater consistency in monitoring and performance across its cement distribution network.

Trains will run between the Yilport Iberia terminal in Huelva, managed by the Turkish Yilport Group, and the Córdoba el Higuerón facility, run by Laumar. The preparations for the launch of a Huelva-Cördoba rail highway started one year ago, with the announcement of a new track and the expansion of the terminal in the port of Huelva.

Rail highways in Spain

Currently, there are two operational rail highway services in Spain, one between Barcelona and the French border across the Perthus tunnel, on standard gauge, and one in Iberian gauge. The latter connects the port of Valencia to Madrid and, as of recently, to Entrocamento in Portugal. Spain is working on the launch of at least 10 more, including:

• Seville-Madrid-Zaragoza
• Valencia-Badajoz-Lisbon
• Madrid-Badajoz-Oporto-Lisbon
• Azuqueca-Zaragoza-Tarragona
• Tarragona-Barcelona
• Madrid-Valladolid-Burgos-Vitoria
• Murcia-Madrid
• Cádiz-Madrid
• Tamarite de Litera-Irún/Portbou
• Zaragoza-Pamplona (Noain)-Vitoria (Júndiz)

The German state development bank KfW acts as the lead arranger and bookrunner for the loan, meaning that there it has sought to source the funds from various lenders to spread the financial risk. The promotional loan likely also comes with favourable reduced-cost terms. It has a term of seven years.

“We are proud that VTG is the first transport company to successfully place such a large promotional loan from the KfW programme for investments in sustainable mobility on the market in order to create the conditions for more climate-friendly rail transport. We would like to thank KfW IPEX-Bank for its consistently reliable and excellent cooperation in implementing this important, innovative financing”, Mani Herold added.

The new wagons for rail highway services are part of an initiative co-financed with EU funds, more specifically the Next Generation EU scheme. VTG received a total of 37 million euros for a total investment of 75 million euros, according to Spanish sector association Faprove. VTG already provides the wagons for the rail transport of semi-trailers between Valencia and Madrid, a service which will be soon extended to Portugal.

VTG’s iWagons in the UK

For the deal in the UK, the wagon lessor delivered the first 18 iWagons to construction company Breedon. The units are JPA powder tank wagons, suitable for the transport of fine powders such as cement. The remaining 44 items will be delivered over the next 12 months, VTG said.

They will be equipped with the Knorr-Bremse FreightControl Sentinel system, developed by Knorr-Bremse Rail Systems. The device which allows for the real-time monitoring of various aspects of a wagon’s journey. The partnership between VTG and Knorr-Bremse entails VTG’s purchase of 2,000 wagon sets of FreightControl Sentinel technology by the end of 2029.

FreightControl Sentinel is considered the backbone of VTG’s iWagon, which allows for the real-time monitoring of various aspects of a wagon’s journey. It integrates advanced anti-slide technology, brake condition monitoring, and event data analytics into a single system.

The project, coordinated by Kombiverkehr KG with partners including INFORM, DUSS, Goethe University Frankfurt, KombiConsult, TU Darmstadt, and VTG, received funding from Germany’s Federal Ministry for Digital Transformation and Government Modernisation.

From research to real-world application

The goal of KIBA was to use AI and mathematical models to improve efficiency, safety, and sustainability in rail freight. The research team developed a prototype that combines network capacity management with optimised train loading.

According to Heiko Krebs, Managing Director of Kombiverkehr, the project “demonstrated how AI can make rail freight transport more efficient,” helping to maximise train capacity and reduce reloading operations. He added that the work supports the broader shift of freight from road to rail and contributes to efforts aimed at climate protection.

Practical testing on the way

The system uses AI-based forecasts to plan train utilisation according to both weight and length, while minimising crane movements and transshipments. This approach, said Dr Rafael Velásquez of INFORM, “opens new opportunities for combined transport,” allowing forecasts of booking volumes to feed directly into optimisation processes.

With the project now complete, partners plan to move toward practical testing and integration. Early use cases are being prepared for terminal operators and rail freight service providers. Future work will focus on improving data quality and automating information exchange before live testing.

Academic–industry collaboration

KIBA is regarded as an example of close collaboration between research institutions and logistics companies. Dr Eva Savelsberg, Senior Vice President at INFORM, said maintaining this link is essential for international competitiveness in AI.

The project partners describe KIBA as a foundation for future innovation in combined transport – one that could make rail freight operations both smarter and more reliable.

VEGA and VTG’s r2l system

The r2l (short for roadrailLink) system consists of a “platform or ramp that terminal cranes and reach stackers can lift vertically onto and off double pocket wagons”. Truck drivers position the semi-trailers onto the r2l platform and drive away. Cranes can then lift the semi-trailers and platform and lay them onto the wagons.

Over the past year or so, a few companies have chosen the railways for their transport operation using the r2l connector, as VEGA calls it. CFL Cargo and VOS Logistics, for example. The former started a service between Luxembourg and Romania, while the latter is now using freight trains to move silo-trailers between Dourges and Venissieux in France.

“This development is largely driven by a combination of factors”, explains the VTG representative. “A weaker-than-expected harvest in 2024, the reopening and increased competitiveness of maritime export routes from Ukraine to North African and other markets, and ongoing geopolitical instability. Sanctions and war-related disruptions continue to impact supply chains and planning reliability across the region.”

Rapid and sustained downturn

The substantial drop in available grain volumes for rail transport presented a challenge for Retrack Slovakia, but also for the broader rail freight sector in Eastern Europe, says VTG. “Despite these difficult conditions, we have remained committed to our customers and operational responsibilities until June 30, 2025”, the company adds. “However, the rapid and sustained market downturn, especially in our core segment, ultimately contributed to the insolvency of Retrack Slovakia.”

And so, the end is nigh for Retrack Slovakia and its Czech subsidiary Retrack Czechia. VTG became the sole owner of the Slovak company in January, after Rail Services Slovakia sold a 40% stake in the company due to persistent financial problems. The German company has given financial support to its subsidiaries to get them back on track, but it was not sufficient to restore their financial health.

VTG Rail UK has announced a new ten-year wagon leasing agreement with Alvance British Aluminium, whom the leasing agent courteously describes as a leading name in the aluminium manufacturing sector. Under the agreement, which begins in January 2025, VTG will lease 20 JPA powder tank wagons to the company.

New partnership with British industry

The “JPA” designated wagons will be upgraded with VTG’s iWagon technology. The innovation, says the agent, is a “cutting-edge solution that is transforming the rail freight industry by enhancing tracking and operational efficiency”. Alvance says the iWagon package will provide them “with the advanced capabilities needed to meet the demands of its operations”.

The deal is a vote of confidence for rail freight operations. “We are proud to welcome Alvance British Aluminium as our newest customer,” said Archie Lucas, Sales Manager at VTG Rail UK. “This partnership exemplifies our commitment to providing innovative solutions that meet the evolving needs of the industry. The retrofitting of these JPA wagons with iWagon technology is a testament to our dedication to enhancing efficiency and service delivery in rail transport for the benefit of our customers.”

Digital monitoring enhancement

The iWagon concept was introduced to the UK market just over a year ago. VTG says it offers a range of benefits to rail operators, including further improved safety measures through real-time monitoring and predictive maintenance capabilities, increased efficiency by optimising wagon utilisation and reducing downtime.

The iWagon also includes Axle Lock Detection and Wheel Flat Prevention (WFP) technology, which monitors wheelset slide and brake condition. Both conditions have been cited in recent freight train derailment incidents. Each of the wagons is fitted with four axle end generators, which provide power to the WFP system – these power further digital innovations, including digital real-time maintenance, temperature monitoring and harmonics frequency monitoring.

Upgrading existing freight flow

The leased wagons are expected to enter service with Alvance in June 2025 and will play a pivotal role in transporting alumina powder from The Port of Blyth, Northumberland, to Fort William in the Scottish Highlands. This journey is integral to Alvance’s process of producing aluminium at one of the world’s most environmentally friendly metal production facilities. The ten-year lease agreement includes a comprehensive maintenance contract provided by VTG. This ensures that the wagons are maintained to the highest standards, providing reliability and peace of mind for Alvance as they integrate the new assets into their operations.

“Partnering with VTG Rail UK for our logistics needs is a strategic move,” said Tom Uppington, Managing Director of Alvance British Aluminium. “That will significantly enhance our operations. The integration of iWagon technology will not only improve our efficiency but also align with our goals for innovation in our supply chain.” Worldwide, VTG’s fleet includes around 84,000 rail freight wagons – mostly tank wagons, intermodal wagons, standard freight wagons and sliding-wall wagons – as well as about 5,000 tank containers.