That target seems very far off when reading the Bundesnetzagentur’s report. Only a single percent (526 kilometres) of tracks was equipped with the technology by the end of 2024. That percentage has likely been boosted somewhat in 2025 by the modernisation of the Riedbahn corridor, which saw the introduction of ETCS Level 2.

ETCS is proving to be a persistent problem for German rail: companies highlight inconsistent ETCS standards, disruptions, and uncertainty regarding future ETCS deployment and regulation.

Within that context, Bundesnetzagentur points to the likelihood of re-upgrading rolling stock to newer versions of ETCS. “With regard to the further rollout of ETCS on the German rail network, upgrades may be required, particularly for older system versions, meaning that these vehicles would once again require conversion resources.” That is a costly affair, as illustrated in the figure below.

Germany has 15,950 locomotives in operation, of which some 2,200 are ETCS-equipped. The 1,500 mainline locomotives (out of 2,800) account for the largest share of vehicles with ETCS. Germany also has 650 ETCS Multiple-Units with the train control system, as well as 30 shunting locomotives.

The agency also identified the lack of electrification, incompatibilities in overhead line sections, and stray currents that locally prevent the use of modern locomotives as hindrances in the rail industry.

In 2024, the overall electrification rate for the German rail network stood at slightly over 55%. This figure reflects a stagnation at the previous year’s levels for both federally and non-federally owned routes. Specifically, 62.4% of the Deutsche Bahn-operated rail network was electrified, while the electrification rate for non-federally owned networks remained low, at approximately 11%.

Why is Germany so slow?

In stark contrast to Germany, countries such as Belgium, Denmark, Italy and the Czech Republic are making faster technological progress on their rail networks. Belgium has already equipped its entire core rail network with ETCS. The Czech Republic, with around 15% already completed, is aiming for full implementation in 2035. Meanwhile, Italy has reduced adaptation costs by 30% through a coordinated approach and is on track for full implementation in 2036.

Germany is facing implementation problems with its railway network due to a fragmented administrative structure (federal, state and company levels share responsibility) and technical complexity, writes our sister publication RailTech.com. Regional signalling systems require costly and time-consuming installation of ETCS equipment in diverse rolling stock. The average cost of this installation has doubled in four years to around €900,000 per vehicle, with additional costs and delays due to specific German regulations. As a result, even renovated lines are being reopened without ETCS, while transport operators await clearer policy on large-scale modifications. For example, the Hamburg-Berlin railway is not getting ETCS despite the months-long closure.

In total, 22 kilometres of rail in Finland have been electrified. On the Swedish side, a single kilometre underwent the upgrade. Besides the electrification, a number of other upgrades were carried out, such as an increase in height for the Torne river rail bridge. Works lasted from spring 2024 until January 2025.

Finland spent 30 million euros on the project, whereas Sweden spent a total of 7 million. The EU also contributed through the Connecting Europe Facility.

International rail freight growth

There has not been any freight traffic through the border town of Haparanda for years, write Finnish media. That has now changed, due to a concern that maritime transport in the Baltic Sea could be “disrupted for one reason or another.”

It is expected that rail freight traffic between Sweden and Finland will grow this year. A Swedish rail operator is already looking at the possibility of launching regular freight services from Italy to Haparanda, Finnish media write.

“Those trains will probably not transport cellulose or other forest industry products, but discussions are underway about transporting Italian wine, champagne, pasta and various construction and interior design products”, a representative of Finnish rail operator Nurminen Logistics said.

Less enthusiasm the other way around

Such a service would also facilitate a shift to rail for smaller and medium-sized Finnish companies, as individual pallets could be transported in freight wagons instead of sea containers.

When it comes to Finnish rail traffic towards Sweden, there is less enthusiasm from businesses. The country’s national rail operator, VR, says that it is not profitable. At the same time, the company investigated the possibility of starting regular container services from Helsinki up north, to Oulu. It would then also pick up containers from the border in Haparanda.

“We had the idea that around 150 containers per week could be such a reasonable volume that we could have a train that would run three times a week, for example. So far, such volumes have not been identified”, the company’s commercial director said.

Standard gauge connection

What would help boost Finnish rail connectivity to the rest of Europe even further is a standard gauge connection to Sweden, says the Finnish Confederation of Industry and Trade. The organisation proposes building a standard gauge railway next to existing infrastructure down south, to Oulu and further towards the town of Raahe.

The Nurminen Logistics representative also looks favourably at that idea: “Transport could be handled without intermediate loading, for example directly from Italy. It would open up a new transport route for export companies operating in, for example, Ostrobothnia, Kainuu and even Eastern Finland, in addition to Northern Finland.”

Firstly, Sweden will expand its network with a new line in the country’s southeast, the so-called Sydostlänken. It is a 17-kilometre extension of an already existing line towards the coast in the region of Blekinge. As part of the project, the soon-to-be extended line will also gain overhead lines and thus be electrified.

Secondly, the line in Bergslagen between Mjölby, north of Stockholm, and Storvik in central Sweden will get a capacity upgrade. While also used for passenger trains, it is an important route for freight traffic.

The southeast link

The Sydostlänken in southern Sweden runs from Älmhult to Olofström, and from there a new track will be built towards the coastal town of Karlshamn. The existing section will be upgraded and electrified. Moreover, it will be enriched with two new freight rail yards.

Swedish freight operator Green Cargo operates on the existing part of the route and welcomes the new development. Its communication chief, Stephan Ray, explains: “Today Green Cargo operates the non-electrified route between Älmhult and Olofström for customers in the automotive industry and we hope that this decision means that the authorities will speed up the process of upgrading that infrastructure as a first phase”, he says. The Swedish transport administration also explicitly cites the connectivity of the automotive industry to the Karlshamn port as a benefit of the Sydostlänken’s extension.

Ray explains that there are more benefits to Sweden’s plans. “It will add a much-welcomed time saving route between Älmhult and the freight ports in Blekinge”, he says. “It will also mean a capacity increase in the connecting routes to Blekinge when present freight trains can use Sydostlänken instead. Sydostlänken will also function as a redundancy option for rerouting traffic in the case of infrastructure failure between Hässleholm and Älmhult.”

The Bergslagen upgrade

The freight route through Bergslagen will get a capacity upgrade in the form of double tracks. “The double track will increase punctuality, improve traffic safety and enable more trains and sustainable transport both within Sweden and further out into Europe”, the traffic administration comments.

Earlier, Swedish Railways published a report on the effect of disruptions, delays and capacity restrictions on the country’s industry. It concluded that presently a quarter of all industrial companies experience problems due to the rail network’s shortcomings. In the long term, the sector’s competitiveness could take a hit in the absence of investments.

On the other hand, extra money has the potential to boost Sweden’s economic growth. With proper investments, increased production would be made possible as maintenance and capacity on the network would improve. By 2050, this could add three per cent to Sweden’s GDP, according to Swedish Railways.

Besides the investments in Blekinge and Bergslagen, Sweden plans to upgrade the economically and militarily vital Iron Ore Line. The transport administration also recommended upgrades to rail infrastructure across the Öresund Strait. There is currently only one line connecting Denmark and Sweden, and both countries desire redundancy desirable for security reasons.

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Potential for Ireland to modernise

Currently, Ireland as a whole has the lowest level of electrification in the European Union, with only 53 km of electrified track, serving one suburban commuter route in Dublin. The remainder of the system in the Republic of Ireland and Northern Ireland (all 2,733 km) is diesel powered. Furthermore, there are no freight operation at all in Northern Ireland. By comparison, Switzerland boasts complete electrification, Poland stands at 60 per cent, and the rest of the UK (England, Scotland and a tiny part of Wales) has 35 per cent of its network electrified. As part of the All-Island Rail Plan, the report advocates vastly increased electrification, which could revolutionise the rail sector, particularly for freight operations.

The review proposes laying 650 km of new track to return the rail network to its pre-1970s extent. The reopening of old routes, linking ports by rail, and establishing new rail connections to airports are among the key objectives. The inclusion of electrification plans signals the potential for Ireland to modernise its rail network, making it more sustainable, efficient, and competitive. It’s clear what that might mean for Ireland’s modest fleet of eighteen GM-built diesel locomotives, and the three similar units on engineering duties north of the border – even clearer when their age is taken into account. All 21 units have been around longer than Bono and the venerable U2 – the bnd formed in the same year the locomotives were delivered: 1976.

Political commitment and swift action

Despite the highly publicised troubles on the other side of the Irish Sea, where electricity prices have forced some units off the rails, the expansion of electrified rail lines can significantly enhance rail freight operations in Ireland. According to the report, and borne out by often quoted statistics, the adoption of electric traction can create a more environmentally friendly and economically viable freight transportation system for Ireland. Electric freight trains can make the Emerald Isle even greener. The prospect of reduced greenhouse gas emissions and lower operating costs, make the switch a tempting proposition for freight haulage.

However, the success of these proposals hinges on political commitment and swift action in getting projects underway. While experts and campaigners laud the plan’s transformative potential, concerns have been raised about potential delays caused by political hesitancy or a lack of resources. In the days of the Celtic Tiger economic boom, Ireland wasted no time in radically upgrading its national road network. Although the passenger fleet was renewed, and some suburban schemes around Dublin were implemented, there was not the same enthusiasm for the rail freight network, which has remained very much an under resourced arm of the national infrastructure.

Model of progressive rail development

That may be about to change, if the confluence of circumstances come to pass. If the wires are going up over parts of the network that have seen little in the way of modification since the abandonment of steam power, then freight has a foothold to exploit. The Irish locomotive fleet is ageing and already written down for accounting purposes. It is also small in number (18 active units). A relatively modest investment would see a relatively massive return on investment. To unlock the full potential of Ireland’s rail freight capabilities, strategic investment in multi-mode traction as a replacement for the diesel locomotive fleet could be considered. This investment would enable rail freight to become more competitive and efficient, providing a viable alternative to road transport on Ireland’s modern motorways.

The All-Island Strategic Rail Review has garnered broad support, but observers of the Dublin parliament say it still needs impetus from the legislature, and an unusually high degree of cooperation with Belfast – where there is currently no sitting government because of matters relating to long standing political disputes – and everyone’s favourite act of self-harm: Brexit. Nevertheless, assuming the paperwork about the movement of goods can be resolved, the actual work of moving goods can start as soon as that is sorted out. The benefits of electrification and enhanced rail connectivity outweigh an administrative hurdles. Electrified rail lines have the potential to revolutionise Ireland’s transportation landscape, creating a more sustainable and efficient rail freight sector, and positioning the country as a model of progressive rail development in Europe.

The Spanish Ministry stressed that both projects will positively affect rail freight transport in Spain by matching international standards and increasing capacity on the network and important freight terminal locations. This is one of the most recent developments in Spain, which is taking its rail freight game quite seriously lately and proceeding to relevant investments in a very high ratio. Ports, terminals and the network are all highlighted as Spain tries to match the pace and infrastructure of the rest of Europe and transform into a critical rail transport player.

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Apart from the optimal transport model that could assist in the Green Transition, there are other critical issues that the transport industry should take into account. For instance, abandoning fossil fuels and moving to new energy sources will be highlighted on transport companies’ agendas in the coming years. Yet, the transition may not be as imagined, and the industry, along with the broader society and economy, might need to find even more viable fuel alternatives than the existing ones.

Strong momentum but lots of work ahead

Schultze stressed that “combined transport is the most inexpensive, most efficient and least risky method available to us”. Some statistics he shared in Kouvola showed that combined transport uses 40-70 per cent less energy than transport that relies on only one mode of transportation. This is not only due to rail but also due to the electrification wave of car traffic that makes roads significantly greener.

“We have strong momentum in the Green Transition – and it is a historic opportunity that will not come twice,” he said, referring to both legislation and initiatives made by the industry’s innovative pioneers. However, he underlined that there is still much work to do. He used heavy truck traffic, producing a quarter of all traffic CO2 emissions, as an example. “The faster goods can be moved from trucks to trains, the better for the planet. At the European level, we must ensure that freight trains have sufficient infrastructure capacity at their disposal”, he emphasised.

Logistics reborn

Ulla Tapaninen, maritime transport professor for the Tallinn University of Technology, thinks along the same lines. According to her, transport logistics will change more during this decade than ever since trucks became the mainstay of logistics. “We are currently in a situation where transport operations – as we now know them – are no longer possible”, Tapaninen pointed out. However, she also offered some encouragement to the various actors in the field: changes should not be seen as problems but as opportunities for something bigger and better.

According to Tapaninen, it is now crucial that every transport logistics company reviews its dependence on fossil fuels and assesses alternative fuels, be they bio-based, hydrogen-based or electricity. “Companies should ask themselves, how exactly should we prepare for the rise in the prices of fossil fuels – and can we move transport to rails?”

The great mineral deficit

Simon P. Michaux, associate research professor from the Geological Research Center, is worried that great electrification may barely even get off the ground. According to him, the planet does not contain enough minerals to feed the Green Transition. “The present discussion focuses on CO2 emissions and climate change instead of the fact that we have dwindling, finite resources at our disposal”, he said.

Michaux called the current electrification push a “crack plan”, but he also believes there is still time to come up with a better roadmap. “We are not helpless in this matter. The Green Transition will happen – and it must happen – but not in the form we think.” Michaux is eyeing the current development of rail transport with interest. “The rail network plays a big role in reorganising the entire industrial value chain. Rail will become much more important.”

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Only ten per cent of freight is electric

The audit is part of RIA’s RailDecarb23 campaign, which was launched earlier this year. The campaign urges the Government to accelerate plans for rail decarbonisation, through a rolling programme of electrification, investment in new traction methods like hydrogen and battery and bringing together Government, rail clients and suppliers to seek ways to reduce carbon when building the railway network.

“It is readily apparent from this graph that the Government is making significantly less progress against its commitments for decarbonising the rail sector compared to other transport sectors”, says the report. “This is a serious concern. The lack of progress is difficult to understand when the railway industry has credible technical solutions for decarbonisation and supporting delivery plans. Lack of decisions to progress these plans risks the railway industry falling behind other transport sectors when it comes to decarbonisation and prevents rail businesses planning for the future. Currently, a mere ten per cent of British freight trains are hauled by electric locomotives and the UK lags behind its European counterparts when it comes to rail freight electrification.”

It’s not too late say the industry

The Railway Industry Association’s analysis of the Government’s ‘Transport Decarbonisation Plan’ published exactly two years reveals a concerning picture when it comes to rail decarbonisation. “All the TDP commitments need to be achieved if the Government is to hit Net Zero transport by 2050”, said Darren Caplan, RIA’s Chief Executive. “The fact that the rate of rail decarbonisation lags behind other methods of transport by some distance jeopardises the whole decarbonisation plan. The industry needs certainty and clarity on the commitments required to achieve Net Zero, in order to invest in the green technologies required and cut carbon emissions; at present, there seems to be neither.”

Alongside the environmental impact, this lack of progress means rail customers will also not be able to benefit from the more efficient and modernised rail services that come with decarbonisation. “It’s not too late for the Government to put its foot on the pedal and deliver on rail decarbonisation”, concludes the report. “We need to see a rolling programme of electrification, investment in hydrogen and battery trains and steps to reduce carbon when building the railway network, to both deliver on the TDP and to enhance the experience for rail [customers].”

“With financial support from the federal government and European subsidies, Infrabel invested almost 3 million euros in extra overhead lines and a small track expansion that is planned for next year”, the infrastructure manager said. “The works started in fall last year and were completed this month.

Efficiency gains

“This will provide additional capacity for electric locomotives, a high demand from industry and rail operators. Bundle South often handles electric freight trains that travel long distances between the port and the hinterland”, Infrabel explains.

“Because there are now 20 tracks with full-length overhead wires, this infrastructure is also more easily accessible from both sides of the bundle, reducing the need for time-consuming procedures in the logistics chain when handling freight trains. This investment in electrification therefore provides more efficiency, flexibility and lower costs, which in turn makes the transport of goods by rail more attractive.”

Bundle South

Bundle South is a so-called departure and arrival yard where freight trains are put together according to their destination. It is comparable to the large Antwerp North marshalling station on the right bank, but smaller. Yet it is one of the most used rail infrastructures in the port.

Last year, almost 20,000 trains were handled at the yard, representing 4.9 million tonnes of goods. The bundle of tracks is strategically located on the left bank, not far from the Deurganckdok, in a place where many large companies from the chemical and steel industry are active and where several large container terminals operate. Moreover, this place is a future growth pole in terms of employment.

Demonstrate the opportunity of electrifying rail freight

“Reports by both the Transport Select Committee and the Chartered Institute of Logistics and Transport clearly show that rail is not on track to help the Government achieve Net Zero by 2050”, said David Clarke, the technical director at the Railway Industry Association. “Both the TSC’s report, which urges government ministers to go faster when it comes to electrification, and the CILT’s roadmap, which sets out a plan to decarbonise 95 per cent of rail freight by the mid-2040s, are helpful and timely. The TSC report is very clear that with just 38 per cent of the rail network electrified and the Government committed to removing all diesel-only trains by 2040, there needs to be a significant acceleration of electrification on intensively used lines and the ramping up of hydrogen and battery trains on other parts of the network.

Sharon Kindleysides FCILT, Chief Executive of the Chartered Institute of Logistics and Transport, admitted that the work had implications for a number of government policies. “CILT is committed to helping policymakers, industry, and professionals play their part in the route to net-zero”, she said. “Our policy groups have worked tirelessly on this research to demonstrate the opportunity electrifying our rail freight sector presents. The CILT electrification strategy also strongly supports other policy imperatives, notably levelling-up and union connectivity and sees rail freight electrification as a key part of the route to net zero.”

Help achieve headline ambitions of government

Both bodies of work supported the “Levelling Up” agenda from the government. The policy is designed to increase the economic output, primarily of the north of England, to better resemble that of prosperous London and South East region. There is also hope that improving and electrifying more of the network will help achieve the headline ambitions of the Union Connectivity Review, a high-level document examining ways to improve communications between the four nations of the United Kingdom.

“The CILT map shows how 80 million miles [driven by diesel HGV [heavy goods vehicles] can be taken off the UK’s roads each year, as well as giving credible evidence that a rolling programme of freight electrification can be delivered at a lower cost than recent schemes, building on RIA’s Electrification Cost Challenge report”, added David Clarke from the Railway Industry Association. “In the coming months, RIA will be campaigning more intensively on the need to accelerate rail decarbonisation, championing not just the environmental and performance benefits, but also how investment in electrification supports economic growth and levelling-up”, he concluded.

Detailed map and strategy

The statement from the CILT comes hard on the heels of the UK parliamentary transport committee report, Fuelling the Future, which urges the UK government to go ahead and commit to an electrified railway. The Chartered Institute of Logistics and Transport has now released its own electrification strategy research, which reveals the significant opportunity of electrification across the UK’s rail network. Rail electrification is possible for 95 per cent of UK freight trains, CILT research reveals.

CILT has released a detailed map and strategy which demonstrates and details the opportunity in the UK to electrify almost all rail freight operations by the mid-2040s. The research reveals that only 800 miles (1280km) of additional electrification is needed in the UK to enable 95 per cent of rail freight to be electrically hauled. That represents a significant national investment, but, says CILT, the initial 60 miles (96 km) of infill electrification is estimated to cost around fifty million pounds (55 million euro) in each of two years. That they say would be less than the cost of one road scheme – and represent a “no regrets” way of decarbonising key parts of the UK logistics system.

UK lags behind European counterparts

“Currently, a mere 10 per cent of British freight trains are hauled by electric locomotives”, says the CILT report. “The UK lags behind its European counterparts when it comes to rail freight electrification. The Chartered Institute of Logistics and Transport suggests an electrification programme of 40 route miles [64 km] per annum for 20 years, at a cost of one hundred million pounds [120 million euro] per annum, is required to deliver this significant opportunity for the UK to meet its decarbonation and net-zero goals.”

Decarbonising technology for other modes of transport is still emerging, and the CILT say that means there are some challenges still to be overcome. “Electrified rail transport is a fully mature, proven green technology which has been in use for more than 60 years”, they say. “CILT sees this opportunity as ‘low-hanging fruit’ when it comes to decarbonisation and reducing emissions from transport operations.

Three key areas to start the programme

Based on detailed CILT analysis of data on rail freight movements across the UK, the routes proposed for electrification lead from main container ports to inland distribution centres. CILT say they have identified key supply chain hubs, as well as routes from major quarries to urban areas that require large quantities of construction materials. Also included are routes serving other key rail freight customers such as the steel industry.

The research also specifies three priority areas in its electrification strategy:

1. Electrification of the key cross-country route from Felixstowe to the Midlands and North avoiding London, and relieving a number of congested road routes.

2. The next phase would electrify the link from Britain’s third largest container port at Southampton to inland markets.

3. The third phase of the CILT electrification strategy involves routes from major quarries and cement works in the Peak District and the Mendips, feeding into the Midland Main Line, which is currently tabled for electrification.

“The CILT electrification strategy would allow around 95 per cent of UK freight trains to be hauled by electric locomotives by the mid-2040s, saving considerable amounts of carbon every year”, said Julian Worth, the chair of CILT’s Rail Freight Forum and the report’s lead author. “The strategy benefits passengers as well as freight customers. Almost all the routes involved carry passenger trains and the strategy would enable life-expired diesel trains to be replaced by modern electric units”, he said.