Untapped potential in the rail industry
Every year, countless decommissioned spare parts and components accumulate in the railway industry – from complete vehicle parts and rail vehicle components to entire switches. However, many of these used parts never make it back onto the market and are not recycled. Instead, they are stored as “silent reserves” in depots or are scrapped directly. This is surprising, as the reuse of functional components could bring both economic benefits (cost savings, capital release) and ecological benefits (resource conservation, waste avoidance). So why does this potential remain largely untapped? The reasons are complex and lie along the entire value chain – from technical and economic to regulatory and logistical hurdles.
Technical hurdles: security, standardization, and obsolescence
A key technical obstacle is the lack of standardization of many railway components. Even minor technical differences can mean that parts cannot be used universally. For example, even small deviations in track sleepers prevent used Dutch sleepers from being reused in Germany. Similar incompatibilities exist with vehicle parts from different series or manufacturers. Many components are designed specifically for certain train types or years of manufacture, which makes it difficult to use them in other vehicles.
Added to this is the uncertainty about the condition of used parts. With removed components, it is often unclear how long their remaining service life is or how much material fatigue has already occurred. Unlike new parts, used parts have an individual “life history” – often incomplete documentation of previous stresses and repairs makes it difficult to assess their reliability. Safety-critical components in particular (e.g., brake components, axles) must not pose an unknown risk. Without comprehensive testing and reconditioning, operators are therefore reluctant to use such used parts. For example, inadequate removal procedures (improper dismantling) carry the risk of components being damaged or contaminated, which further complicates their reuse.
Technical obsolescence also plays a role: the railway industry relies on long product life cycles, but technological advances can render older components obsolete. Electronic systems from 20 years ago may now be incompatible with current standards, or spare parts and software updates may be unavailable. This means that decommissioned components may be technically obsolete even if they still function.
However, the company TXO provides a positive counterexample: the international supplier specializes in spare parts and refurbishment for telecommunications and signaling technology. Through the targeted recycling and refurbishment of old stock, TXO makes it possible to continue operating older signal box systems safely, even though many manufacturers have long since discontinued production of the corresponding components. In this way, TXO helps to ensure that existing technology does not have to be replaced prematurely – which both conserves resources and avoids high investments in new buildings. TXO thus demonstrates how professional obsolescence management can keep even seemingly outdated systems fit for the future.
Economic barriers: costs, markets, and incentives
Economic considerations also often lead to used parts being scrapped rather than resold. One reason for this is the comparatively high cost of reuse compared to direct recycling. Steel and metals can be recycled almost endlessly and fetch a relatively high price as scrap. For many operators, it therefore seems more attractive to sell old parts as metal rather than investing time and money in testing, refurbishing, and storing used parts. The immediate scrap money is guaranteed, while the marketing of used spare parts can be fraught with uncertainty.
In addition, the storage of unused inventory incurs ongoing costs: storage space, administration, and insurance tie up capital. As long as it is unclear whether and when a part will be needed again, it often remains on the shelf – with the risk of losing value due to corrosion or obsolescence. Any scheduled or unscheduled decommissioning (e.g., due to fleet replacement or conversion) can create excess inventory for which there is no longer any internal demand.
Selling used railway parts sounds economically sensible, but in practice it proves to be complicated. Companies are faced with questions: What price can you still ask for a used or even unused part that has been in storage for years? Who assesses the technical condition and creates a description? What internal approval processes are necessary to be allowed to sell the material at all? And above all: Where can buyers be found in this specialized market? Clear processes and responsibilities are often lacking, so the simplest (albeit suboptimal) solution is chosen – leave it lying around or scrap it. These hurdles mean that potential remains untapped.
Regulatory requirements: Safety first
In Europe, the railway industry is subject to strict safety and approval regulations. Every component of a rail vehicle must meet high standards, which are often verified by standards and approval procedures (e.g., by the Federal Railway Authority in Germany). If a used part is installed in another vehicle or project, the question arises: Does the original approval still apply? Or does the part have to be recertified as if it were a new part? There are often gray areas here. For fear of liability risks, many operators refrain from using second-hand parts as a precaution, especially in safety-relevant areas. Documenting complete test histories and ensuring that a used part complies with current standards can be very time-consuming – especially if the original manufacturer is not involved.
Waste and environmental law also plays a role. Once a component has been removed, it is legally considered “waste” in some cases, and its reuse is subject to strict regulations. Across the EU, railway companies must rigorously comply with waste disposal guidelines – violations can have legal consequences. Classification as waste makes it difficult to return a product to the market until it is clear that it meets all product requirements (keywords: end-of-waste status and CE marking). In addition, environmental regulations such as REACH limit the further use of old parts if they contain prohibited or harmful substances (e.g., old insulators with PCB or asbestos). Therefore, new parts with certification are often the easier option because they are legally compliant.
Logistical challenges: From dismantling to distribution
The recycling of used railway components often fails due to tangible logistical problems along the chain from decommissioning to the end user.
It all starts with dismantling: when rail vehicles or infrastructure facilities are removed, a decision is made as to whether parts will be salvaged or end up in a scrap container. Companies specializing in the dismantling of trains emphasize that every vehicle contains valuable components. However, these parts must be carefully removed, inspected, and stored separately during dismantling. Often, however, dismantling is carried out under time and cost pressure, which stands in the way of selective salvage. In addition, the dismantled material remains the legal property of the client (rail operator). The dismantler itself does not usually sell used spare parts directly. This means that railway companies must take action themselves to reuse or market the parts – which requires additional resources.
Next stop: storage. There can often be months or even years between removal and reuse. During this time, parts must be stored and managed properly. Without suitable storage concepts, sensitive components can be damaged (corrosion, aging of electronic components). In addition, inventory management is needed to keep track of what is available. In reality, however, there is often a lack of up-to-date, centrally managed databases on decommissioned materials. Anything that is not recorded is easily forgotten.
Of course, distribution should not be forgotten: finding suitable buyers for used railway parts is a challenge in itself. The railway industry is relatively small; supply and demand must meet at the same time and in the same place. Transport and logistics play an important role here – moving heavy components over long distances can be expensive and complicated. Experts therefore emphasize that, even during construction projects, “donor and recipient projects” should be coordinated as much as possible in terms of geography and timing so that reusable parts can be reused nearby. Without such planning, used components quickly become a storage problem due to a lack of local demand.
Finally, the sale itself requires expertise: technical descriptions, photos, test certificates, negotiations—all of which take time. Digital B2B marketplaces such as railauction.plus offer an approach to this. Here, even small quantities or niche components can be offered to a wide range of buyers. We take on part of the marketing effort and already have industry-specific buyer networks, which facilitates sales.
Approaches to solutions: On the path to a circular economy
Despite the obstacles mentioned above, things are happening—and that is what matters. Driven by sustainability goals and economic pressure, initiatives are emerging to promote the circular economy in the rail sector as well. Deutsche Bahn, for example, has created its own platform, DB Resale, to offer disused materials. Items that are no longer needed internally by DB can be reused by external railway companies, enabling the group to extend the service life of its operating resources and conserve resources. Swiss rail operator SBB and other European railways also sell used infrastructure components (e.g., switches, sleepers) for secondary purposes.
Industry and suppliers are also looking for ways to make reuse profitable. One example is Continental, which has established a refurbishment service for air suspension systems (secondary suspension systems for trains). Used air springs are industrially reconditioned: intact metal components are cleaned and inspected, wear parts such as rubber bellows are replaced with new parts, and the entire suspension system is then subjected to rigorous testing in accordance with original equipment manufacturer standards. The result is reconditioned components with the same life expectancy and quality as new parts – but at a lower cost and with faster availability. Such models show that reuse and manufacturer warranties are not mutually exclusive if quality processes are adhered to. Similar approaches exist for the reconditioning of bogies, engines, or transmissions by specialized maintenance workshops.
The issue is also being addressed at industry and association level. Between 2019 and 2021, the International Union of Railways (UIC) coordinated the REUSE project, in which major European rail operators (including DB, SNCF, ÖBB, and SBB) worked together on tools to promote the circular economy. Best practices were exchanged, such as the establishment of central recycling and reuse centers. SNCF Réseau, for example, operates a “Recyclerie” in Beaune, where all kinds of small parts (screws, plastic elements, hardware) are sent. There, they are inspected, reconditioned, and repackaged to be sold either within the railway company or to external customers. Such facilities increase the chances that even smaller components will be given a second life instead of ending up in the trash.
Last but not least, politicians are also focusing more attention on this issue. In the future, public tenders could include criteria for recyclability, which would create incentives to consider later dismantling and reuse when designing trains. The EU Commission is already measuring the progress of its member states in terms of the circular economy and setting framework conditions to reduce waste and promote reuse. This is likely to increase pressure on the railway industry to establish innovative solutions.
Conclusion: Cultural change on rails is necessary
The fact that so many used spare parts and components remain unused in the rail industry is not due to a single reason, but rather to a complex interplay of technical, economic, regulatory, and logistical barriers. Safety and reliability are top priorities in rail transport—and until now, this premise has often been easier to fulfill with new parts than with the uncertain second use of used parts. However, in view of resource scarcity, cost increases, and climate targets, a rethink is taking place.
Strengthening the circular economy in the rail industry requires a holistic approach: Technically, components need to be more standardized and their remaining useful life more predictable. Economically, business models need to be established that make remanufacturing and resale attractive – for example, through cost advantages or new service offerings. Regulatory, a clear framework with uniform approval procedures for reused parts can create trust. And logistically, infrastructure and digital platforms are needed to efficiently match supply and demand. Initial initiatives by railway companies, suppliers, and associations show that change is possible. However, before used spare parts can be recycled as a matter of course, a certain “cultural change” is still needed on the railways – for a sustainable and resource-efficient railway system.
