Transforming rail freight in China: Knorr-Bremse and China Railway join forces to deliver next-gen technologies
Knorr-Bremse and CARS, China Railway’s national rail innovation and technology center, enter a new phase of their long-standing partnership
Launch of the China Freight Cooperation Program in Beijing marks a key milestone
Program aims to accelerate innovation and deployment of advanced solutions in the areas of freight digitalization, intelligence, and braking systems
Partnership offers significant growth opportunities for Knorr-Bremse in one of the world’s largest rail freight markets over the next years
Long-term global revenue potential of around €1 billion per year in the rail freight sector for Knorr-Bremse
As part of its ambitious economic and sustainability agenda, China is increasingly shifting long-distance freight transport to the railways – a key trend that demands even longer and heavier trains to operate safely, efficiently and intelligently. To help realize this mission, Knorr-Bremse and China Railway’s CARS (China Academy of Railway Sciences) have signed a comprehensive Memorandum of Understanding to develop next-generation technologies: The cooperation focuses on digital solutions, driver assistance systems, and advanced braking technologies to further enhance the safety, efficiency, and performance of China’s freight rail transport.
Marc Llistosella, CEO of Knorr-Bremse AG: “Our ambition is clear: we want to grow, leverage new business opportunities, and succeed in a competitive global market. To achieve this, we invest with a long-term perspective and entrepreneurial mindset. Our collaboration with China Railway is an excellent example of how strategic initiative, a clear focus on our core strengths, and strong partnerships enable us to develop new markets, drive innovation, and create sustainable value together.”
Dr. Nicolas Lange, Executive Board Member responsible for Rail of Knorr-Bremse AG: “Together with CARS, we are elevating our long-term partnership in the Chinese railway industry to the next level – from product collaboration to joint development of system-level innovations. China is a key growth market for Knorr-Bremse, and by combining our global expertise with local excellence, we are strengthening our role as a systems partner while shaping the future of efficient, intelligent, and sustainable rail freight.”
From product supply to system-level innovation
Building on more than 20 years of successful cooperation between CARS and Knorr-Bremse, the China Freight Cooperation Program expands the partnership beyond a product-focused collaboration to include broader cooperation on systems innovation level.
Joint efforts to accelerate digitalization and intelligent upgrades of rail freight will focus on multiple technology areas. Freight digitalization will cover digital train architecture, predictive maintenance, wagon monitoring solutions, and digital automatic couplers, which are also being prepared for market deployment in Europe. Apart from coupler-based solutions, the partners will focus on wireless functions running on wagon-bound energy storage to enable enhanced fleet monitoring and service optimization.
In addition, Knorr-Bremse and CARS will develop driver assistance technologies to improve energy efficiency and fleet performances, based on solutions like LEADER that are already in operation in Europe, in the US, and Australia. Besides, the partners will work on advanced braking systems tailored to the demanding requirements of long-distance and heavy-haul transportation.
Upgrading rail freight: A substantial growth market
Modernization of rail freight is gaining momentum worldwide. The most comprehensive and advanced initiatives are currently planned in Europe, where the original equipment market alone is expected to reach approximately €25 billion for the upgrade of up to 500,000 freight cars. As the partner of choice for next-generation technologies across the rail ecosystem, Knorr-Bremse targets an annual revenue opportunity in the mid triple-digit million-euro range in Europe.
China, which operates one of the world’s largest rail freight fleets, is pursuing similarly ambitious modernization and modal shift programs, pointing to a market potential comparable to that of Europe. As the United States, the world’s third major rail market, are expected to adopt next-generation rail freight technologies as well, this positions Knorr-Bremse to capture a global annual revenue potential exceeding €1 billion in the long term.