As the German rail network undergoes extensive renovation, Alstom’s Germany CEO, Tim Dawidowsky, cautions that it will take time for the situation to improve significantly. The company’s chief executive emphasized that there is no alternative to the ongoing construction, likening it to rebuilding a house, which cannot be done in a matter of weeks.
Alstom, a leading player in the rail technology industry, is banking on the German government’s 500 billion euro infrastructure package to drive future growth. The company currently generates a significant portion of its revenue from the sale of trains, but Dawidowsky hopes that the focus on infrastructure will change this dynamic. In the long term, Alstom plans to make digitalization, including work on the infrastructure, account for 50 percent of its business.
The company has already secured large service contracts, with some agreements spanning over 30 years, in which Alstom will be responsible for the maintenance of trains. Dawidowsky stressed the importance of equipping trains with digital signal technology, likening it to the need for a smartphone to function on a 5G network. He also called for the faster implementation of the modern train control system, ETCS, in Germany, citing the country’s original goal of a 2040 rollout as ambitious but unlikely to be met at the current pace.
The CEO expressed optimism about the potential for progress, citing the special fund allocated for the rail network’s modernization. Dawidowsky specifically highlighted the upcoming general renovation corridor, set to begin in August, as an opportunity for the rail industry to prioritize digitalization, not just on the Berlin-Hamburg route, but across the network.