In just 5 years, They’ve Tackled Problems that Have Plagued Rail Transport for Decades

One of the sectors most affected is freight rail transport, now facing reduced demand, rising operational costs, and uncertainty about its future. However, history shows that tough times often pave the way for innovation, enabling not just survival during crises but elevating entire industries to new levels.

In the freight rail sector, one company stands out: the Polish startup SP Tech Solutions. Over the past five years, it has been driving a technological revolution, addressing long-standing challenges and introducing innovative solutions.

Now, with a solid foundation of success in Poland, the company is confidently expanding into international markets, bringing its innovations to a global stage.

The European rail freight sector has faced notable challenges in recent years, with a significant drop in transported volumes. In 2023, the total weight of goods moved by rail across 29 European countries reached 1.39 billion tons, an 8.7% decline compared to the previous year.

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This downward trend was observed in 27 out of the 29 countries analyzed. Greece recorded a staggering 53% decrease, while Estonia and North Macedonia reported declines exceeding 40%. Even Germany, the longstanding leader in European rail freight with a 31.6% market share, experienced a 6.1% reduction. Poland, with a 16.6% share of the EU market, fared comparatively better, with a decrease of 6.8% .

While 2024 has shown some stabilization, the rail freight sector in Europe is far from a recovery. Despite the introduction of the Sustainable and Smart Mobility Strategy in December 2020 - aimed at doubling rail freight volumes by 2050 - rail continues to lose market share. Structural challenges and evolving market dynamics are keeping the sector from realizing its potential as a key player in Europe's transport ecosystem.

Michał Pawłowski, co-founder of SP Tech Solutions alongside Piotr Sikorski said, "Innovation offers a path to reversing the current challenges and enhancing the competitiveness of rail freight transport. Decades of investment in road transport while marginalizing rail have led to the sector’s current issues: high operational costs, lack of flexibility, and incomplete logistics solutions. These challenges have been the foundation for the development of rail transport automation over recent years, including autonomous trains, cargo monitoring systems, and intelligent digital solutions like ours for fleet management and cost optimization,”.

The startup not only addresses the industry’s pain points effectively but is also rapidly scaling its business. One of its flagship tools, RAILY Taxi, automates the organization and optimization of crew transport logistics. It is already used by over 30% of rail operators in Poland, including PKP Cargo, Orlen Kolej, and Rail Polska, as well as by several companies in Western Europe.

Over the past two years, SP Tech Solutions has significantly expanded its operations by introducing new modules to its system, including RAILY Marketplace - an integrated service exchange platform designed for international operators.

Through strategic partnerships with global players in the transport sector and the intensive development of its R&D department, SP Tech Solutions has established itself as a leader in delivering innovative solutions for the rail industry.

Piotr Sikorski, CEO of SP Tech Solutions said, “It turned out that rail doesn’t need a massive revolution right away—it simply requires a fresh perspective and optimization of long-standing processes. That’s exactly what our newest tool, RAILY Marketplace, offers. It’s a platform that helps operators locate external service providers precisely where they’re needed, such as at delivery points. This is a significant convenience, especially for international operators, as they can review and order all required services, such as cargo handling, in one place, Digital platforms like RAILY Marketplace not only simplify cost planning and control but also enhance international collaboration, standardize processes, and improve data sharing among rail operators."

Michał Pawłowski, COO of SP Tech Solutions said, "SP Tech Solutions has announced plans to expand its product line, focusing on integrating artificial intelligence with fleet management systems to further reduce operational costs and enhance the efficiency of rail transport on an international scale. The company’s solutions are already gaining recognition not only in Poland but also in Germany, home to one of Europe’s largest and most advanced rail markets. With seamless integration into neighboring countries’ networks and key hubs such as Hamburg, Bremerhaven, Duisburg, and Frankfurt am Main, renowned for their intermodal transport capabilities, Germany serves as a critical logistics center. “It turns out that even such a developed rail market as Germany’s sees the value in our solutions and, more importantly, appreciates them. This gives us wings and motivates us to work even harder on creating new tools,”

In recent years, the EU has shifted its transport policy to emphasize rail. With increasing pressure for sustainability and decarbonization, the outlook for the European rail market is promising. However, the sector faces significant challenges, including competition from dominant road transport and the urgent need to modernize infrastructure.

The development and implementation of digital systems to support fleet management, transport planning, and cost optimization—an area where SP Tech Solutions plays a pivotal role - represents a crucial step in modernizing the entire rail industry in Europe.