Italo Orders €3.6B Siemens Velaro Trains for Germany

MILAN, ITALY – Italo Holding signed a contract with Siemens Mobility on 27 July 2026 for 26 Velaro Multi System high-speed trains, with an option for an additional 14 units. The core train supply and 30-year full-service maintenance agreement is valued at approximately €3 billion, while the total investment programme—including workforce expansion and infrastructure—reaches €3.6 billion.

What Does This Contract Cover?

The contract comprises three integrated components: delivery of 26 eight-car Velaro Multi System trainsets rated for 320 km/h operation, a 30-year comprehensive maintenance agreement to be executed at Siemens Mobility’s Dortmund depot, and digital condition monitoring through the Railigent X platform using AI-based predictive maintenance algorithms to minimise depot dwell time and maximise fleet availability.

Total programme investment of €3.6 billion also encompasses the hiring and training of approximately 2,500 employees, alongside station upgrades and IT infrastructure investments required for Italo’s planned entry into the German long-distance passenger market. The multi-system traction package enables operation across four different power supply standards—spanning 15 kV AC, 25 kV AC, 3 kV DC, and 1.5 kV DC—which is a prerequisite for cross-border services between Italy, Austria, Switzerland, and Germany. Each trainset will seat approximately 440 passengers and feature Starlink satellite internet antennas for on-board connectivity.

Note: A specific delivery timeline or entry-into-service date was not disclosed by either party at the time of announcement.

Key Contract Data

How Does This Compare to Similar Contracts?

At approximately €3 billion for 26 units (with the option to reach 40), this represents one of the largest single Velaro platform orders placed by a private open-access operator. By comparison, Deutsche Bahn—a state-owned incumbent—ordered 73 ICE 3neo (Velaro MS) units across multiple call-offs between 2020 and 2023 for a total of approximately €2.5 billion, equating to roughly €34 million per eight-car trainset versus Italo’s indicative ~€115 million per unit when the 30-year maintenance wrap is included (Source: Siemens Mobility, 2023). The earlier Eurostar e320 order for 17 Velaro-based trainsets, placed in 2010, valued each sixteen-car unit at approximately €41 million before maintenance provisions (Source: Eurostar, 2010).

The €3.6 billion total programme figure—factored against Italo’s reported requirement to hire and train 2,500 employees—implies a per-employee investment of approximately €240,000 for the staffing component alone, signalling that Italo is building a ground-up German operating subsidiary rather than a lightweight administrative presence. The source data confirms the contract was signed specifically to secure track access on the German High Speed Network, though separate reporting from Railway Gazette (June 2026) indicates that regulatory approvals for Italo’s German expansion remain unresolved, with the operator’s path application still under review by DB Netz (Source: Railway Gazette, 2026).

Editor’s Analysis

Italo’s €3.6 billion commitment to the German market is the largest cross-border expansion attempt by any European open-access high-speed operator to date, and it arrives at a moment when EU rail liberalisation policy is colliding with persistent national infrastructure bottlenecks. The decision to lock in a 30-year maintenance envelope with Siemens—rather than building an independent depot network—mirrors Trenitalia’s strategy with Hitachi Rail for the Frecciarossa 1000 fleet, suggesting that private and state-owned operators alike now view OEM-led lifecycle maintenance as a non-negotiable risk mitigation tool for multi-system fleets.

The parallel context of Siemens acquiring key MERMEC signalling assets reinforces that the manufacturer is executing a vertically integrated rail technology strategy: supplying the trains, maintaining them for three decades, and controlling an expanding share of the signalling ecosystems on which they will operate (Source: MarketsandMarkets, 2026; IndexBox, 2026). Whether Italo secures its German track access in time to deploy these trains profitably remains an open question—and the single largest risk factor in this contract’s long-term return profile.

FAQ

Q: Why is Italo ordering multi-system trains when it currently only operates in Italy?
A: Italo intends to enter the German long-distance passenger rail market and requires trains capable of operating across four different electrification standards—Italy’s 3 kV DC, Austria’s and Germany’s 15 kV AC, Switzerland’s 15 kV AC, and France’s 25 kV AC—to run through-services without locomotive changes at border stations.

Q: When will the new Velaro trains enter passenger service?
A: Neither Italo nor Siemens Mobility has publicly specified a delivery or revenue-service date. Manufacturing lead times for custom-configured Velaro trainsets typically range from 24 to 36 months from contract signature, but entry into service is contingent on Italo obtaining regulatory approvals and track access rights in Germany, which remain under review.

Q: What happens to the existing Italo fleet if the German expansion proceeds?
A: Italo’s current fleet of 51 trains—comprising AGV units from Alstom and Pendolino Evo units—will continue operating domestic Italian high-speed services. The new Velaro Multi System fleet is dedicated to the cross-border German corridor and is not intended to replace existing domestic rolling stock. Italo has not confirmed whether any existing Italian-route services will be affected by the fleet reallocation.