Modernizing rail freight logistics with Automated Train Operation

The challenge

As the European Union races to achieve climate neutrality by 2050, rail freight is increasingly seen as a cornerstone of sustainable logistics. Governments and freight rail operators are exploring ways of shifting cargo from heavy-goods vehicles on the roads to clean, low-emissions freight trains. At the same time, Europe already operates the world’s densest rail network. Expanding rail infrastructure is not always an option. This means it’s essential to get far more trains safely operating on already-congested tracks.

One approach to solving this major challenge is Automated Train Operation (ATO). This technology involves retrofitting existing locomotives with remotely controlled, automated capabilities, or defining ATO specifications for newly built, ATO-ready trains. This will enable up to twice as many trains to safely operate at the same time, because automated trains can travel at closer distances to one another than human-operated trains, with less risk of collision, due to smart, automated brake systems. At the same time, ATO delivers numerous additional benefits for rail providers, such as lower power consumption, increased operational efficiency and lower costs.

Our client, a major regional freight rail operator, was tasked by a national government with developing prototypes for ATO locomotives and a remote-supervised operating system, as well as conducting a one-year trial period to test and define the ATO specifications. This complex project would require tendering for a wide range of technical capabilities, along with strategic support in choosing the right suppliers. Our client would also require support in selecting suitable suppliers based on strict criteria, then onboarding and managing suppliers at every stage of the project. Additionally, because it was publicly funded, the project would also have to comply with strict standards for transparency and reporting. The company selected Eraneos as its strategic program-management partner to support it from the beginning of the project onwards.

The approach

The collaboration began in 2022, shortly after the client was tasked with developing an ATO prototype. With the support of our team, they decided to issue two different tenders: one for the actual ATO locomotives, a second for the remote-supervised system to operate them. We helped them to develop technical criteria for selecting the right partners. The client also introduced its own strategic criteria for the selection process. For example, they valued working with a combination of both major, international suppliers and smaller, regional players from the startup ecosystem. This would provide the combination of technical capabilities and innovative mindset that a project of this nature requires.

In addition, all suppliers would need to comply with strict budgetary and disclosure regulations, due to the publicly funded nature of the project. We supported the client throughout the tendering process until they ultimately selected a global tech supplier to develop the ATO locomotives, and a network of startup partners to develop the remote-supervised system.

Following the successful tendering process, the client tasked our team to support them with onboarding and managing the new suppliers. In addition to creating a governance structure, we set up a project management office to oversee all project documentation, along with a collaboration platform. We provided full program management, including supplier management and budget oversight. As the project evolved, we played a key role in keeping all partners aligned around key strategic and compliance-related objectives. Our team focused on ensuring smooth, effective collaboration between all stakeholders.

The results

The project is still in progress and working towards a major milestone: the start of a one-year operational trial on a key international freight corridor. Two existing freight locomotives are being retrofitted with ATO capabilities and remote supervision functions. These test vehicles will operate under real conditions over the course of a full year to prove that the new systems are capable of performing across different seasons, weather conditions and operating environments.

During the trial, the project team will ensure safety by keeping experienced train drivers onboard as fallback operators at all times. The automated systems will control traction and braking, but human operators will still be in charge of monitoring actual track conditions and taking over if necessary. The team will also test the remote supervision component system in controlled scenarios.

This project is helping our client to achieve multiple strategic objectives. On the one hand, it is proving the technical feasibility of ATO for freight rail. At the same time, it represents the first step towards retrofitting more of our client’s vast fleet of locomotives, so they are ready for a more sustainable future. In addition, it contributes to defining the European ATO specifications, ensuring that operators across the continent can retrofit or purchase compliant locomotives with confidence that they will receive the necessary derogations to operate on the rail network.

Thanks to its structured and collaborative program-management approach, the Eraneos team helped the client make significant progress on a highly complex and strategically important transformation. This project is another example of how we are helping rail freight operators to integrate emerging automation technologies into legacy systems without compromising on safety or operational integrity. It shows that automation in rail freight transport is no longer just a long-term vision, but an achievable goal.