Knorr-Bremse’s Executive Board Member for Rail Dr Nicolas Lange explains to Nick Kingsley about globalisation, how the company has moved beyond a self-limiting portfolio and his hopes for a successor to the Europe’s Rail R&D initiative. ‘I do not believe that we are too costly’, insists Knorr-Bremse’s Board Member for Rail Dr Nicolas Lange as he surveys the challenges of innovation in the global rail market on the sidelines of the InnoTrans 2026 trade fair in Berlin. ‘We all invest a lot of our own money into R&D.’ However, he sees a pressing need to understand how and where innovation is most beneficial in the rail value chain, and which bodies are best equipped to deliver it. This is a pressing issue in Europe especially, given that the debate over the future incarnation of the Europe’s Rail Joint Undertaking is now in full swing ahead of planned reforms to the EU’s wider Horizon Europe research programme. ‘All the companies here [at InnoTrans] are investing a hell of money into innovation. But an EU fund is very valuable because the EU brings parties together under one umbrella and makes a bigger package out of that.’ To that end, he acknowledges that he and several of his peers in the UNIFE supply chain association have been talking to the European Commission to make the case for a successor to the ERJU programme. However, Lange sees a clear distinction between the role of multilateral initiatives like ERJU (and its Shift2Rail predecessor), with a focus on broad policy goals like getting more freight onto rail, and the innovation tasks of the suppliers themselves. ‘Companies like ours should be responsible for developing the next iteration of products or technologies’, he says, emphasising the need for the rail sector to get that balance of responsibilities correct. Cause for optimism on DAC ‘I think sometimes governments and the EU look at the rail sector and compare it to some other industries, and they think “well, it’s running well, so we don’t need to intervene”’, Lange asserts. ‘But that’s not true, because we need support to deliver the vast investment programmes we have.’ He cites the Digital Automatic Coupler roll-out as one example, suggesting that the contract agreed in mid-September between Knorr-Bremse and Rail Cargo Group should give rise to ‘a certain amount of hope’. Knorr-Bremse announced the contract on September 17, saying it would equip a train of RCG wagons with DAC, electronic control units and sensors to digitally monitor vehicle functions and condition. According to Knorr-Bremse, this was the first commercial equipment contract for the technology in Europe, with the train due to enter regular freight operations from 2028 under the EU-backed PioDAC programme. ‘If we talk about DAC, it’s not only about the coupler, it is the start point for true optimisation of rail freight operations’, he insists. ‘You have an electrical connection along the train, you have a data wire through, and then you can put in sensors on your wagons and locomotives’, which would start to create a vision for a ‘connected freight train’ that has long been an aspiration of the sector. While much work lies ahead to deliver a mass migration to DAC in European freight operations, Knorr-Bremse is keen to point out that digital innovation does not need to wait for mass fitment of the full DAC equipment; Lange points to its project in the UK where Knorr-Bremse uses its FreightControl Sentinel axle-mounted kinetic energy harvesting product to provide an energy source for wagons, enabling sensors and other equipment to be powered by the motion of the train, without the in-train feed envisaged under the DAC programme. A global player While in Europe, much of the rail debate focuses on ‘top down’ policy, process and regulation, the rail supply chain continues to coalesce around a handful of major players that are active globally, of which Knorr-Bremse is clearly one. Its global presence was emphasised in September when it signed a comprehensive memorandum of understanding with China Academy of Railway Sciences to develop digital technologies, driver assistance systems and advanced braking systems to enhance the safety, efficiency and performance of freight trains in China. ‘This is not about transferring European technology to China’, Lange points out. ‘Far from it. We are a global company’, he says, while adding that one of the pain points of being global is the challenge of adapting to differing standards, regulations and certification processes in each one. Nevertheless, China — partly because of its sheer size — remains a major opportunity for Knorr-Bremse, because of the single set of standards that apply across the whole country. However, Lange is keen to stress the similarities in the strategic challenges facing the Chinese rail freight sector to those facing Europe. These include a shortage of skilled personnel, outdated operating practices and constraints in network capacity that hinder China Railway’s ability to carry more freight. ‘The modal share of rail in Chinese freight is about 10%’, Lange says, pointing out that ‘across the western world, many of the challenges we see are the same’. He reflects that his company has been active in China ‘for years, since the very start of railway modernisation there’, and he rejects any suggestion that local suppliers could edge the firm out of its own local joint ventures. ‘We are seen as a key partner there’, he says. ‘They clearly respect our heritage, and our ability to invest 6 to 7% of our turnover into R&D. That is something they can benefit from.’ Asked if he feels any tension between leading a company with roots in Germany and a key player in associations like UNIFE while also having substantial investments outside Europe, Lange says ‘we do not take one customer more seriously than another. It doesn’t matter if the customer is in Europe, is in China, or somewhere else. We just want to play fair.’ This, he adds, means having a straight fight for business based on technological merit, while avoiding the ‘social dumping’ risks that come with unequal localisation practices. ‘If European companies have to localise somewhere in the globe, then it’s only fair that [European] politicians say, OK, but then you guys have to localise in Europe.’ A broader portfolio Amid significant industry consolidation, Knorr-Bremse has over the past couple of years pushed hard to expand its rail activities beyond its traditional remit as a supplier of components for rolling stock. In particular, it has sought to expand into the signalling market, reflecting a trend that has seen a number of other companies synonymous with rolling stock also seek to diversify into train control. ‘We limited ourselves to being a rolling stock subsupplier for decades’, Lange says. ‘But we have more in our DNA. We have safety in our DNA. We don’t only know about rail vehicles. We know the rail system.’ Key to launching this expansion was the US$690m acquisition in September 2024 of the conventional rail signalling business of Alstom Signaling North America, with 800 employees in six locations becoming employees of KB Signaling, a standalone business. ‘The idea is to become a tier one supplier for infrastructure’, Lange explains, although he caveats this by stating that Knorr-Bremse does ‘not want to move away from our DNA. So not take care of the track itself. But something which fits into our safety and technology DNA is automatically interesting. Why shouldn’t we offer the same advantages we are delivering on rolling stock to become a broad-scale subsupplier of tier one equipment in signalling?’ At the heart of KB Signaling is a strong presence in conventional signalling equipment supply in North America, and Lange explains that this is serving as a launchpad to grow a footprint in other markets too, initially those with similar operational characteristics to the USA and Canada. ‘It’s a small start point for now, as we don’t have everything we would like in our portfolio so far’, but further acquisitions are likely. In October 2025, Knorr-Bremse completed a deal to buy embedded electronics and software specialist Duagon, which Lange describes as a small but important step into digital control systems. ‘We are progressing with two approaches in parallel’, he says of the company’s strategy. ‘One is we are continuing to develop ourselves “bottom up” to better serve existing markets in Europe and elsewhere, such as India for example. But the second is continuing to look at mergers and acquisitions, because it’s logical. On your own, you need to create, invent, do the R&D work, then you need to have the certification time, then you need to get into the market. It’s possible, but it takes longer.’
Knorr-Bremse’s Executive Board Member for Rail Dr Nicolas Lange explains to Nick Kingsley about globalisation, how the company has moved beyond a self-limiting portfolio and his hopes for a successor to the Europe’s Rail R&D initiative.
‘I do not believe that we are too costly’, insists Knorr-Bremse’s Board Member for Rail Dr Nicolas Lange as he surveys the challenges of innovation in the global rail market on the sidelines of the InnoTrans 2026 trade fair in Berlin. ‘We all invest a lot of our own money into R&D.’
However, he sees a pressing need to understand how and where innovation is most beneficial in the rail value chain, and which bodies are best equipped to deliver it.
This is a pressing issue in Europe especially, given that the debate over the future incarnation of the Europe’s Rail Joint Undertaking is now in full swing ahead of planned reforms to the EU’s wider Horizon Europe research programme.
‘All the companies here [at InnoTrans] are investing a hell of money into innovation. But an EU fund is very valuable because the EU brings parties together under one umbrella and makes a bigger package out of that.’ To that end, he acknowledges that he and several of his peers in the UNIFE supply chain association have been talking to the European Commission to make the case for a successor to the ERJU programme.
However, Lange sees a clear distinction between the role of multilateral initiatives like ERJU (and its Shift2Rail predecessor), with a focus on broad policy goals like getting more freight onto rail, and the innovation tasks of the suppliers themselves. ‘Companies like ours should be responsible for developing the next iteration of products or technologies’, he says, emphasising the need for the rail sector to get that balance of responsibilities correct.
Cause for optimism on DAC
‘I think sometimes governments and the EU look at the rail sector and compare it to some other industries, and they think “well, it’s running well, so we don’t need to intervene”’, Lange asserts. ‘But that’s not true, because we need support to deliver the vast investment programmes we have.’ He cites the Digital Automatic Coupler roll-out as one example, suggesting that the contract agreed in mid-September between Knorr-Bremse and Rail Cargo Group should give rise to ‘a certain amount of hope’.
Knorr-Bremse announced the contract on September 17, saying it would equip a train of RCG wagons with DAC, electronic control units and sensors to digitally monitor vehicle functions and condition. According to Knorr-Bremse, this was the first commercial equipment contract for the technology in Europe, with the train due to enter regular freight operations from 2028 under the EU-backed PioDAC programme.
‘If we talk about DAC, it’s not only about the coupler, it is the start point for true optimisation of rail freight operations’, he insists. ‘You have an electrical connection along the train, you have a data wire through, and then you can put in sensors on your wagons and locomotives’, which would start to create a vision for a ‘connected freight train’ that has long been an aspiration of the sector.
While much work lies ahead to deliver a mass migration to DAC in European freight operations, Knorr-Bremse is keen to point out that digital innovation does not need to wait for mass fitment of the full DAC equipment; Lange points to its project in the UK where Knorr-Bremse uses its FreightControl Sentinel axle-mounted kinetic energy harvesting product to provide an energy source for wagons, enabling sensors and other equipment to be powered by the motion of the train, without the in-train feed envisaged under the DAC programme.
A global player
While in Europe, much of the rail debate focuses on ‘top down’ policy, process and regulation, the rail supply chain continues to coalesce around a handful of major players that are active globally, of which Knorr-Bremse is clearly one.
Its global presence was emphasised in September when it signed a comprehensive memorandum of understanding with China Academy of Railway Sciences to develop digital technologies, driver assistance systems and advanced braking systems to enhance the safety, efficiency and performance of freight trains in China.
‘This is not about transferring European technology to China’, Lange points out. ‘Far from it. We are a global company’, he says, while adding that one of the pain points of being global is the challenge of adapting to differing standards, regulations and certification processes in each one. Nevertheless, China — partly because of its sheer size — remains a major opportunity for Knorr-Bremse, because of the single set of standards that apply across the whole country.
However, Lange is keen to stress the similarities in the strategic challenges facing the Chinese rail freight sector to those facing Europe. These include a shortage of skilled personnel, outdated operating practices and constraints in network capacity that hinder China Railway’s ability to carry more freight.
‘The modal share of rail in Chinese freight is about 10%’, Lange says, pointing out that ‘across the western world, many of the challenges we see are the same’.
He reflects that his company has been active in China ‘for years, since the very start of railway modernisation there’, and he rejects any suggestion that local suppliers could edge the firm out of its own local joint ventures. ‘We are seen as a key partner there’, he says. ‘They clearly respect our heritage, and our ability to invest 6 to 7% of our turnover into R&D. That is something they can benefit from.’
Asked if he feels any tension between leading a company with roots in Germany and a key player in associations like UNIFE while also having substantial investments outside Europe, Lange says ‘we do not take one customer more seriously than another. It doesn’t matter if the customer is in Europe, is in China, or somewhere else. We just want to play fair.’
This, he adds, means having a straight fight for business based on technological merit, while avoiding the ‘social dumping’ risks that come with unequal localisation practices. ‘If European companies have to localise somewhere in the globe, then it’s only fair that [European] politicians say, OK, but then you guys have to localise in Europe.’
A broader portfolio
Amid significant industry consolidation, Knorr-Bremse has over the past couple of years pushed hard to expand its rail activities beyond its traditional remit as a supplier of components for rolling stock. In particular, it has sought to expand into the signalling market, reflecting a trend that has seen a number of other companies synonymous with rolling stock also seek to diversify into train control.
‘We limited ourselves to being a rolling stock subsupplier for decades’, Lange says. ‘But we have more in our DNA. We have safety in our DNA. We don’t only know about rail vehicles. We know the rail system.’
Key to launching this expansion was the US$690m acquisition in September 2024 of the conventional rail signalling business of Alstom Signaling North America, with 800 employees in six locations becoming employees of KB Signaling, a standalone business.
‘The idea is to become a tier one supplier for infrastructure’, Lange explains, although he caveats this by stating that Knorr-Bremse does ‘not want to move away from our DNA. So not take care of the track itself. But something which fits into our safety and technology DNA is automatically interesting. Why shouldn’t we offer the same advantages we are delivering on rolling stock to become a broad-scale subsupplier of tier one equipment in signalling?’
At the heart of KB Signaling is a strong presence in conventional signalling equipment supply in North America, and Lange explains that this is serving as a launchpad to grow a footprint in other markets too, initially those with similar operational characteristics to the USA and Canada.
‘It’s a small start point for now, as we don’t have everything we would like in our portfolio so far’, but further acquisitions are likely. In October 2025, Knorr-Bremse completed a deal to buy embedded electronics and software specialist Duagon, which Lange describes as a small but important step into digital control systems.
‘We are progressing with two approaches in parallel’, he says of the company’s strategy. ‘One is we are continuing to develop ourselves “bottom up” to better serve existing markets in Europe and elsewhere, such as India for example. But the second is continuing to look at mergers and acquisitions, because it’s logical. On your own, you need to create, invent, do the R&D work, then you need to have the certification time, then you need to get into the market. It’s possible, but it takes longer.’
Source: Railway Gazette
