Hitachi Rail secured contracts worth ¥100 billion ($657 million) for railway control system upgrades in Germany and San Francisco, marking early gains from its recent acquisition of Thales SA’s signaling business.
The Japanese transportation company will participate in Deutsche Bahn’s €6.3 billion ($6.6 billion) nationwide control system modernization project, competing alongside Siemens AG and Alstom SA. The state-owned German railway operator aims to upgrade its aging infrastructure across the country.
Separately, Hitachi Rail won a contract from the San Francisco Municipal Transportation Agency to modernize streetcar signaling systems, though specific terms weren’t disclosed. Both deals were initially pursued by Thales’s railway signal division before Hitachi acquired it in May 2024.
The wins demonstrate Hitachi Rail’s expanding footprint in railway information systems following the Thales deal. The company has been actively pursuing international contracts while promoting its operations management technology.
Railway signal systems, which manage train movements and ensure safety, have become increasingly critical as operators worldwide seek to boost capacity and efficiency on existing lines. The sector has consolidated in recent years, with Hitachi’s Thales acquisition following Alstom’s purchase of Bombardier’s rail unit in 2021.
The projects add to Hitachi Rail’s growing portfolio of international contracts as it competes with European rivals Siemens and Alstom in the global railway technology market. The company has focused on digital solutions and signaling systems as key growth drivers amid increasing automation in rail transportation.
