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Jul 09 2024

DAC Implementation Costs: Are They 9 Times Higher Than Expected

The current estimated costs for implementing Digital Automatic Coupling (DAC) technology are raising concerns among European railway associations. According to a recent statement by seven associations from Central and Eastern Europe, including Žesnad, SPV, ZNPK, Die Güterbahnen, Hungrail, ZVKV, and Aros, the projected costs for DAC implementation might be significantly underestimated.

 

The existing cost quotations do not encompass all the relevant factors, potentially leading to a substantial increase in costs beyond the expected levels. The associations argue that the current Cost-Benefit Analyses (CBA) need to be reassessed with a more realistic approach to reflect the true expenses involved in deploying DAC on a large scale.

 

At the core of the issue is the initial estimation of equipping rolling stock with an automatic coupler at around 5,000 euros per unit. However, this figure might not account for the full scope of expenses, especially regarding the digital components of the DAC technology. Drawing from the Swiss experience, the associations suggest that the total cost for comprehensive DAC implementation, including device installation, could range from 40,000 to 45,000 euros per vehicle.

 

In light of these findings, the associations emphasize the necessity of revising the CBA methodology to ensure a comprehensive analysis. They highlight the lack of sufficient data, particularly concerning locomotives, which leads to skewed calculations in the current CBAs. Moreover, the associations question the validity of a uniform CBA approach for all European countries, given the significant disparities in labor costs across the region. Read more

 

Source: RAILFREIGHT.COM