German national rail operator Deutsche Bahn (DB) has awarded a long-term volume framework contract worth €2.8bn to upgrade the network’s digital control and safety systems to a consortium of Siemens Mobility and contractor Leonhard Weiss.
The award signals a shift in DB’s procurement model towards large, long-term framework deals.
Siemens called it “a paradigm shift for the rail industry”.
Instead of relying on many individual contracts and call-offs, there is now a single, large, long-term volume contract, Siemens said.
In return, DB is committed to call-off quantities over the duration of the contract.
Siemens expects the first call-offs this spring.
“It enables the industry to develop the resources necessary for modernising Germany’s rail network,” said Michael Peter, the chief executive of Siemens Mobility. “And thanks to its optimised interfaces, the contract will also make the implementation process much more efficient.”
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