ERTMS subsidy scheme freight locomotives

Disclaimer: If the English version shows discrepancies or leads to differences of interpretation, the version in the Dutch language will be decisive.

For whom?

Are you the owner of a railway undertaking, and do you own freight locomotives? Or are you a leasing company owning freight locomotives? Then, you may qualify for the ERTMS (European Rail Traffic Management System) subsidy.

Which adaptation or development?

The ERTMS subsidy is for the adaptation of series of freight locomotives to ETCS system version 2.0 or higher. ETCS stands for European Train Control System. An adapted locomotive is suitable for ETCS Level 2, which uses radio signals. This may include:

• upgrading existing ETCS systems or
• retrofitting, where you install new ETCS systems.

The ERTMS subsidy is also available for the development of 2 prototypes for a series of at least 20 freight locomotives. In this case, you will have an ETCS system version 2.0 or higher installed, suitable for ECTS level 2.
 

How much subsidy?

We reimburse a maximum of 50% of the costs you make. The subsidy contributes to the adaptation of the freight locomotive, via an upgrade or retrofit. Or it contributes to the development of a prototype. The subsidy amounts to a maximum of € 200.000 per freight locomotive for conversion or adaptation. Or € 2 million for the development of a prototype. For this development, there is a maximum of € 4 million available. This amount is not reserved for this activity. Applications for subsidies for adaptation received earlier take precedence over applications for development. You can apply until the subsidy budget has run out.

What is subsidised?

You can receive a subsidy for costs from 1 January 2025 until the end of the project, for:

• purchase and installation of software and hardware for the adaptation of the freight locomotive;
• the unavailability of the freight locomotive (withdrawal) during the adaptation and development. We assume an adaptation means the freight locomotive is stationary for a maximum of 4 weeks. For the development of a prototype, this is no more than a year;
• the vehicle permit due to the adaptation or development;
• designing a prototype;
• labour costs.

Calculation of labour costs

Do you have labour costs, for instance, due to using project staff? The hourly tariff for which you can receive a subsidy consists of the direct labour costs spent on executing the activities eligible for subsidy. Divide these hours by your organisation's usual number of productive hours per year. Then, increase this number by 50% for indirect costs.

The direct labour costs include

• gross salary according to the CAO salary table of the individual employment contract
• holiday allowance
• year-end bonus or 13th-month payment, not dependent on profit
• employer’s part of pension contribution
• employer’s part of social security contributions and sickness benefits

Examples of indirect costs are:

• housing costs
• office equipment
• domestic travel for business meetings

Prepare your application

Prepare your application well. You need these documents and information:

• eHerkenning level 3. Do you apply with a Dutch intermediary and this intermediary does not have eHerkenning yet? Apply for this on the eHerkenning website (in Dutch). Applying for eHerkenning takes about 1 to 5 business days.
• Entrepreneurs from abroad can log in without a Dutch intermediary using a RVO.nl-account (choose 'No Account? Log in'). More information can be found on the pages eLoket and eHerkenning and authorising someone or being authorised (in Dutch);
• name, address, legal representative and Chamber of Commerce (Kamer van Koophandel or KVK) number or equivalent registration of the locomotive's owner;
• bank account number to transfer the subsidy amount to, with proof the account is registered to the applicant;
• copy from the European Vehicle Register, the national vehicle register or the vehicle register from a different Member State, with ERATV number, vehicle registration number and serial number of the freight locomotive;
• copy of the vehicle permit;
• quote or agreement for the adaptation or development;
• version number of ERTMS being installed;
• annual figures for the 2 calendar years before the year you submit your application. This is a balance sheet, profit and loss account for your organisation, and an explanation of the annual figures.

For adaptation and development, you need:

• proof the freight locomotive in the application was granted a vehicle permit before 14 July 2017, as referred to in article 26k, first paragraph of the Railway Act, or proof this freight locomotive was ordered before 14 July 2017;
• scheduled plan including expected delivery date per freight locomotive.

For the development of a prototype, you also need:

• a risk dossier in which you describe the 5 main project risks and measures you are taking to manage these risks. 

Project plan

Additionally, you will make a project plan including a budget. Formats are available below. The project plan contains a:

• description of the activities
• explanation of how your project contributes to the subsidy goal
• specified budget
• time schedule of the activities
• projection of the costs (liquidity needs) in the project period, preferably per quarter. This is obligatory for a subsidy of € 125,000 or more.

Alert: the project plan format has been changed on 29 April 2025, 11.30 AM.

After your application

• After submitting your application, you will receive a confirmation email. This contains the case number you can use to communicate with us about your application.
• We treat the applications in order of receipt. 
• If we receive multiple complete applications on the day the subsidy runs out, we will decide the comparative ranking of the applications via a draw. 
• You will receive a decision as soon as possible. We will inform you within the statutory period of 13 weeks. 
• Have we granted you a subsidy? Then, you will receive a letter with a grant decision. This letter confirms you have been granted a subsidy, for which amount and which advances you will receive. 

Obligations

If your project receives a subsidy, you must comply with several obligations. The main ones are:

• You keep an accurate project administration.
• You carry out the project according to the project plan and the obligations in the decision.
• You ask for permission in writing before making any changes to the execution of the project. 
• The vehicle permit for the adapted freight locomotive has at least the same area of use in the Netherlands as before the adaptation of the freight locomotive. 
• Demonstrate the developed prototype is placed on the market by a complete application for type approval submitted to the European Railway Agency. 
• After the start date of the vehicle permit, the freight locomotive is deployed in the Netherlands for at least 10 days per year, for 3 consecutive calendar years. This will be determined using the wagon lists, as supplied by the Prorail infrastructure manager. 
• In the event of (looming) bankruptcy of your company, you notify us immediately in writing. This may involve a debt restructuring scheme for natural persons, suspension of payments or declaration of bankruptcy.

Report progress project

Is your subsidy € 25,000 or more, and will the project take longer than 12 months? Then you submit a progress report once per year. The data on which to report, are in the subsidy decision.

Request the final decision

Have you finished your project? Request the final decision for your subsidy within 22 weeks after completion. Do this for each project. We will determine the final subsidy after you request a final decision.

Add these annexes when you apply for the final decision:

• Audit certificate (in Dutch) by an accountant or accountant-administrative consultant when the subsidy amount at the final decision is € 125.000 or more;
• financial justification;
• explanation of deviations in costs made when these differ 10% or more from the budget item;
• technical end report;
• copy of the vehicle permit issued for the adaptation or development; 

Find out more?

• Publicatie Staatscourant (in Dutch)
• Kaderbesluit subsidies I en M (in Dutch)