SUSTAINABLE COMPETITIVE DIGITAL GREEN RAIL FREIGHT SERVICES

This comprehensive EU funding opportunity, identified as HORIZON-JU-ER-2025-FA5-01, specifically aims to enhance the European rail freight sector by advocating for sustainable, competitive, digital, and green services. The overall focus is set on increasing the capacity, efficiency, and quality of rail services while improving cross-border operations and multimodal service offerings. The total indicative budget for this initiative is EUR 20.4 million, with a targeted project duration of 30 months.

Eligible applicants include rail infrastructure managers, railway undertakings, rail suppliers (system integrators, manufacturers, and technology providers), research institutes, academia, small and medium-sized enterprises (SMEs), and start-ups. These applicants are expected to form a consortium that reflects a diverse expertise necessary to achieve the objectives set by the project. Notably, participation in the Europe’s Rail Joint Undertaking is required, which integrates various stakeholders across the rail ecosystem.

The funding mechanism operates as a grant, covering 60% of eligible costs in a lump sum format. This means that applicants must secure the remaining 40% from other sources to ensure project viability. In-kind contributions from private members of the Europe's Rail Joint Undertaking are mandated, with a specific requirement that these contributions must exceed the funding request by a factor of approximately 1.263.

The opportunity supports two main work streams:

1. Full Digital Freight Train Operations (FDFTO), which emphasizes developing and demonstrating the Digital Automatic Coupler (DAC). This technology aims to transform freight operations with automated coupling, powering, and data communication across freight trains, thereby advancing automation in rail operations.

2. Seamless Freight, which focuses on enhancing the integration of rail freight services with other transport modes through digital solutions. This includes developing dynamic traffic management systems, European-wide digital platforms for efficient booking and management, and standardized railway checkpoints at borders.

The document outlines specific deliverables that must be achieved by the end of the project in 2028, with expected outcomes such as significant reductions in train formation and preparation times, improved customer service through better coordination, and reduced energy consumption in operations. Key Performance Indicators (KPIs) will be used to measure the success of the project.

The application process is set up as a single-stage call, with proposals required to be submitted by February 11, 2026, following the call opening on October 30, 2025. Given that only one grant is anticipated to be awarded, the competition is expected to be fierce, with a success rate likely below 10%.

Additional requirements for applicants include demonstrating effective integration and collaboration across various sectors, ensuring compliance with European standards and regulations, and addressing identified technical challenges related to the rail sector.

Overall, this initiative represents a critical opportunity for stakeholders within the rail freight domain to collaboratively innovate and thereby significantly enhance the competitiveness and sustainability of rail transport in Europe.

DESTINATION 5 Sustainable Competitive Digital Green Rail Freight Services

This EU funding opportunity aims to enhance rail freight services and make them more attractive to the European supply chain. The core objective is to improve capacity, efficiency, cross-border operations, and multimodal service offerings within the rail freight sector, while also contributing to the harmonization of European standards. The total indicative budget for this topic is EUR 20.4 million. The indicative project duration is 30 months.

The selected proposal will be a Flagship Project of Europe’s Rail JU, expected to have significant impacts and requiring an integrated sector systemic approach. The project should contribute to the following:

Improved EU rail supply industry competitiveness
More sustainable and resilient transport
Reinforced role for rail in European transport and mobility
Improved performance and capacity
Reduced costs

The project should also establish monitoring and demonstration activities to measure specific Key Performance Indicators (KPIs).

The project is structured around two main workstreams:

Work Stream 1: Full Digital Freight Train Operations (FDFTO) with Digital Automatic Coupler (DAC) as an enabler.
Work Stream 2: Seamless Freight, focusing on easy access and reliable intermodal transport services through digital solutions.

Specific activities and actions to be addressed include:

FDFTO backend concept development in alignment with rail freight stakeholders and the System Pillar.
Active contribution to DAC specifications, including power and data transmission aspects.
Defining concrete reliability targets in collaboration with the European Union Agency for Railways (ERA).
Addressing identified open points and contributing to technical solutions and risk mitigation (e.g., crashworthiness, ATEX environments, dynamic behavior).
Defining DAC migration requirements and specifications.
Supporting pioneer DAC train activities and linking them to testing and authorization processes.
Exploring and developing a web platform for seamless freight corridor and customer freight solutions, including real-time data integration.
Specific demonstration activities in Central/Eastern Europe.

Deliverables for Work Stream 1 by 2028:

European full digital freight train operations (TRL 7-8): A follow-up large-scale demonstrator extending outcomes from TRL 7 to TRL 8, including full digital freight train operations based on DAC Type 4 and Type 5, train composition detection/management system, automated brake test system, and train integrity/length determination.
European full digital freight train operations (TRL 5-7): A second demonstrator with lower TRL levels for technical solutions upgrading functionality, such as automated parking brake systems, digital wagon inspection, distributed power concepts, and electro-pneumatic brake systems.
Demonstration of Yard automation (TRL 7): Demonstrating fully automated shunting loco and wagon movements, yard digitalization, automated train composition and dispatching, and data exchange on wagon condition.

Deliverables for Work Stream 2 by 2028:

Seamless freight corridor (TRL 5-8): A cross-border freight trains demonstrator on two European corridors, showcasing integrated timetable planning, management, and path ordering systems, dynamic yard/terminal management systems, dynamic freight-specific real-time functions, and AI-based prediction models.
Seamless customer freight (TRL 6-8): Demonstrating seamless planning, management, and booking of multimodal rail-based transport by combining key enablers into an innovative open system.

Additional preparatory works are needed for future demonstrations, extending solutions with additional functions, scope, and higher TRL levels.

Necessary elements for demonstrations under Destinations 1, 2, and 3 must be provided by this action.

The Flagship Project should develop the following capabilities:

Capabilities for improving European full digital freight train operations
Capabilities for increasing automation in shunting operations
Capabilities for DAC based wagon concepts including multi-modal transport applications
Capabilities for Seamless Freight Corridor
Capabilities for Seamless Freight Multimodal and Customer

For research, innovation, and demonstration activities using data models related to rail system interoperability or safety, alignment with the ERA Ontology is required.

Collaboration is required with other FAs, SP, and CEF projects, including developing a deliverable capturing specific requirements for Destinations 1, 2, and 3 by Month 6.

The project should use EU-RAIL System Pillar Cybersecurity specifications and seek synergies with projects related to rail DAC applications and the EU-Rail Projects DACtivate and DACFit.

Key Performance Indicators (KPIs) include:

Decreasing train formation/decomposition time
Decreasing train preparation/departure process time
Increasing average train length
Reducing average transportation time on reference corridors
Reducing operational dwell time at borders and handover points
Reducing non-added value operational stops
Reducing handling/response time for ad-hoc cross-border path requests
Reducing handling/response time for connected comprehensive multimodal offers
Reducing energy consumption and footprint

The funding rate is 60% of eligible costs, with consortia deciding on internal funding rates. Eligible costs will take the form of a lump sum.

Applicants should ensure their proposals and consortium reflect expertise from:

Rail infrastructure managers and railway undertakings
Rail suppliers (system integrators, manufacturers, and technology providers)
Research institutes and academia
Other sectors and parties, with particular attention to SMEs and Start-ups

Applicants are expected to deliver relevant information to the JU and Linked Projects to contribute to the advancement of the Innovation and System Pillars, as well as to the development and implementation of EU policy, legislation, and European standards.

The EU-RAIL JU Call Helpdesk is available for queries, with a deadline for addressing questions by Wednesday 28 January 2026, at 17:00 Brussels Local Time.

In summary, this funding opportunity targets the modernization and digitalization of rail freight services in Europe. It seeks to improve efficiency, sustainability, and interoperability through the development and demonstration of innovative technologies and solutions. The project aims to make rail freight a more attractive and competitive option within the European supply chain, aligning with the goals of the EU Green Deal and promoting a shift towards more sustainable transport modes. The project requires a collaborative approach, involving various stakeholders from the rail sector, research institutions, and SMEs, to ensure comprehensive and impactful results.

Eligible Applicant Types: The eligible applicant types include rail infrastructure managers, railway undertakings, rail suppliers (system integrators, manufacturers, and/or technology providers), research institutes, academia, SMEs, and Start-ups. Private Members of the EU-Rail are specifically mentioned with regard to in-kind contributions.

Funding Type: The funding type is primarily a grant, specifically a HORIZON JU Innovation Action (HORIZON-JU-IA) and HORIZON JU Research and Innovation Actions (HORIZON-JU-RIA) and HORIZON JU Coordination and Support Actions (HORIZON-JU-CSA). Eligible costs will take the form of a lump sum.

Consortium Requirement: The opportunity requires a consortium of multiple applicants. The applicants shall ensure that their proposals and consortium reflect the aggregated expertise to perform the activities and achieve the objectives set by the Destination.

Beneficiary Scope (Geographic Eligibility): The geographic eligibility is primarily focused on EU member states and associated countries. A number of non-EU/non-Associated Countries that are not automatically eligible for funding have made specific provisions for making funding available for their participants in Horizon Europe projects.

Target Sector: The program targets the rail transport sector, specifically focusing on rail freight services, digital technologies, automation, and interoperability. The thematic sectors include transport, ICT, digital, energy, climate, and innovation.

Mentioned Countries: No specific countries are mentioned, but the focus is on European corridors and Central/Eastern Europe for specific demonstration activities. Therefore, the region is EU.

Project Stage: The project stage ranges from Technology Readiness Level (TRL) 5 to 8, covering development, validation, demonstration, and preparatory works for future demonstrations.

Funding Amount: The total indicative budget for the topic is EUR 20.4 million. Individual grants vary depending on the specific action, ranging from EUR 600,000 for Research and Innovation Actions to EUR 33.1 million for Innovation Actions.

Application Type: The application type is a single-stage call for proposals.

Nature of Support: Beneficiaries will receive money in the form of a lump sum grant.

Application Stages: The application process appears to be a single-stage process, as indicated by the "single-stage" deadline model.

Success Rates: The success rates are not explicitly mentioned, but the indicative number of grants for each topic provides some insight into the potential success rate. For the main topic, HORIZON-JU-ER-2025-FA5-01, only one grant is expected to be awarded.

Co-funding Requirement: Yes, co-funding is required. The funding rate is 60% of the eligible costs, and private members of the EU-Rail part of consortia should provide in-kind contributions to additional activities, with the amount of total in-kind contributions being no less than 1.263 times the funding request.

Summary:

This EU funding opportunity, HORIZON-JU-ER-2025-FA5-01, aims to enhance the European rail freight sector by promoting sustainable, competitive, digital, and green services. It falls under the Europe’s Rail Programme and calls for a Flagship Project to contribute to two main workstreams: full digital freight train operations and seamless freight services. The project seeks to increase capacity, efficiency, and service quality in rail freight, improve cross-border operations, and offer better multimodal services.

The project scope includes developing and demonstrating various capabilities, such as improving digital freight train operations, increasing automation in shunting operations, developing DAC-based wagon concepts, and creating seamless freight corridors and multimodal customer experiences. It emphasizes the development of an EU-harmonized Digital Automatic Coupler (DAC) and related technologies, as well as the integration of digital solutions for timetable planning, yard management, and intermodal monitoring.

Eligible applicants include rail infrastructure managers, railway undertakings, rail suppliers, research institutes, academia, SMEs, and start-ups, who are expected to form a consortium with aggregated expertise. The funding is provided as a lump sum grant, covering 60% of the eligible costs, with private members of the EU-Rail expected to provide in-kind contributions. The project duration is 30 months, and the total indicative budget for the topic is EUR 20.4 million, with one grant expected to be awarded. The application process is a single-stage call for proposals, with a deadline of February 11, 2026. The project is expected to contribute to the Europe Rail JU Master Plan's goals of improved EU rail supply industry competitiveness, more sustainable and resilient transport, a reinforced role for rail in European transport and mobility, improved performance and capacity, and reduced costs.