How OTIV is Driving the Future of Sustainable Rail Transport

This article is part of the ‘Beyond Business – Founders on Impact’ campaign.

Imagine a world where freight and passenger transport is greener, more efficient, and no longer constrained by driver shortages. Enter OTIV, a pioneering startup in railway automation. Founded with a dual ambition—advancing autonomous driving technology in Europe while making a tangible environmental impact—OTIV is on a mission to transform the rail industry.

Transportation is responsible for 25% of global CO2 emissions, yet rail accounts for less than 1% of that total. However, rail’s modal share remains only 15-20%. Increasing this share is essential to achieving climate goals, as one train can replace 50 trucks, emitting nine times less CO2 in the process. The potential for sustainability gains is enormous, but making this shift requires overcoming deep-rooted challenges in the rail industry.

The Challenge

Despite its environmental advantages, rail transport faces significant obstacles preventing it from reaching its full potential. Labor shortages, lack of flexibility, reliability issues, cost inefficiencies and safety challenges have hindered its growth, making it less competitive than road transport. Without innovation, the industry risks stagnation—leaving highways congested and emissions unchecked.

Europe’s ambitious climate goals demand a drastic shift toward sustainable transport. However, increasing rail’s modal share requires overcoming logistical and operational inefficiencies that have persisted for decades. How do you make rail transport a viable alternative to road freight and passenger vehicles? The answer lies in automation.

“Rail should be the backbone of sustainable transport, but without automation, it simply can’t compete and will struggle to survive,” Sam explains.

However, implementing automation in rail is no easy feat. Unlike road-based autonomous vehicles, trains operate on infrastructure that is often decades old, with regulatory frameworks that have been slow to adapt.

“Rail is an industry that moves cautiously, and for good reasons,” says Sam. “Safety and reliability are non-negotiable. That’s why we focus on incremental automation, enhancing human operators rather than replacing them.”

OTIV’s systems are already in use, demonstrating how AI can enhance train operations without compromising safety. By leveraging real-time data and predictive analytics, their technology ensures optimal performance, minimizing delays and disruptions.

“Our technology bridges the gap between human expertise and automation,” says Sam. “It’s about making rail more efficient, not replacing people, but empowering them with better tools.”

The Impact

Although railway automation is a gradual process, OTIV is already making strides in modernizing the industry. Their goal on the short term? Automate 10,000 trains, which would eliminate the need for 500,000 trucks—a game-changer for emissions reduction and road decongestion.

“Impact isn’t always easy to measure,” Sam observes. “A lot of what we do now is laying the groundwork for a shift that will play out over decades. But when we look at the numbers—more trains running efficiently, fewer trucks on the road—it’s clear this is the right path.”

The startup’s collaboration with major rail operators signifies a shift toward widespread automation adoption. While quantifying their exact impact today is challenging, the potential benefits are clear:

• Enhanced rail efficiency = fewer delays, improved passenger experience
• Reduced operational costs = making rail transport more competitive
• Lower carbon footprint = massive reductions in emissions from road transport

“We are not just automating trains,” says Sam. “We are building the infrastructure for a smarter, greener transportation network that will define the future.”

The Learning

Building an impact-driven startup isn’t just about technology—it’s about resilience and focus. Sam’s view is that an impact-driven startup should be built just like any other startup – with ambition, drive and belief.

“Don't build an impact startup any differently than any other startup. Work relentlessly towards your goals. We are engineers, motivated by building something that makes a positive impact on society.”

The Future

OTIV is on a mission to make autonomous rail a mainstream reality. Over the next few years, they aim to scale their technology across Europe and the United States, bringing automation to thousands of trains. As the industry embraces digital transformation, OTIV envisions a future where railway networks are fully optimized, sustainable, and resilient.

“We believe that autonomous rail is the next logical step in transportation,” Sam concludes.

Their work is critical in helping governments and businesses meet climate targets while ensuring transport systems remain efficient and cost-effective. With increasing global demand for sustainable transport solutions, OTIV is poised to play a leading role in shaping the future of mobility.