Next-Gen Rail: The Israeli Startup Reinventing Train Logistics Without New Tracks

Introduction: Reinventing Rail Without Laying New Tracks

In a world grappling with climate change, urban congestion, and strained logistics, one Israeli startup is quietly pioneering a transformation of one of the oldest forms of transport—railways. DirecTrainS, founded by a team of aerospace engineers and thinkers outside the conventional rail industry, has developed a breakthrough technology called Dynamic Coupling (DC). This system allows trains to connect and disconnect while moving, unlocking massive capacity increases without needing to build additional rail infrastructure.

As rail networks around the world strain under growing demand, and the cost of new construction soars, DirecTrainS’ promise of a 40% capacity boost—without new tracks or regulation changes—has drawn attention. With successful testing in France and big ambitions across Europe and the U.S., this startup could become a key disruptor in the global shift toward greener logistics.

Summary: DirecTrainS and the Dynamic Coupling Revolution

Israeli startup DirecTrainS has completed its first successful large-scale field test of a revolutionary in-motion train coupling system, aimed at radically increasing railway capacity. Conducted in partnership with French engineering firm CERTIA, the test involved coupling and decoupling 22.5-ton rail wagons while in motion. The results were not only technically sound—passing the so-called “water cup test” where not a single drop was spilled—but also demonstrated practical viability.

Founded in 2021, DirecTrainS operates from Tel Aviv and Zichron Yaakov, bringing an aerospace mindset to railway logistics. With a team composed mostly of former Israeli Air Force engineers, the startup approaches the problem from a systems-oriented and cross-disciplinary angle. This outsider status enabled them to rethink traditional rail logistics without being bound by industry norms.

Originally, the company aimed to provide “direct anywhere-to-anywhere service,” but quickly pivoted to a more grounded approach: a plug-and-play coupling solution that requires no changes to trains, infrastructure, or regulation. This innovation allows existing trains to join and split dynamically, enabling tighter scheduling and higher throughput.

DirecTrainS operates under a Hardware-as-a-Service (HaaS) model, charging an annual software license per DC wagon. The startup is currently at Technology Readiness Level 7, aiming to reach TRL 8 within 18 months through expanded field testing and compatibility demonstrations.

Having self-funded about \$1 million, the company is now raising a \$4.4 million seed round. Their focus includes optimizing for middle-mile parcel delivery, reducing urban truck traffic, and ultimately transforming passenger transport. Initial target markets include Europe and the U.S., where existing rail systems are overloaded, and alternative upgrade solutions are prohibitively expensive.

In contrast to EU programs like “virtual coupling” that require massive infrastructure overhauls, DirecTrainS offers a faster, more cost-effective solution. For example, internal models suggest their system could quadruple train frequency between Haifa and Tel Aviv without modifying existing infrastructure.

Ultimately, DirecTrainS envisions reducing car dependency, easing urban congestion, and driving major environmental benefits through a smarter, scalable rail logistics system.

What Undercode Say: A Startup Thinking Beyond the Tracks

DirecTrainS represents the kind of disruptive innovation that doesn’t merely improve on the status quo—it bypasses it. In an era where rail systems are being asked to do more with less, their Dynamic Coupling system is a rare instance of efficiency gained without additional infrastructure or bureaucracy.

What sets them apart isn’t just the tech—it’s the mindset. By recruiting talent from aerospace and political science, the startup fuses precision engineering with systems thinking and sustainability awareness. This is especially crucial in the rail industry, where most innovation comes from inside the bubble, and where regulatory inertia often crushes radical ideas.

From a market perspective, DirecTrainS is targeting a logistics bottleneck with massive global implications. The middle-mile—delivery from warehouse to distribution center—is one of the least optimized segments of freight logistics. By solving this without extra tracks, without changes to existing trains, and with software-driven modularity, they offer something rare: scalable infrastructure innovation.

Let’s also look at the climate implications. Shifting goods—and eventually passengers—off trucks and onto rail means less congestion, lower emissions, and better land use. Especially in high-density regions like the EU, where physical expansion is limited, such solutions are gold.

DirecTrainS’ go-to-market strategy is also savvy. By offering its tech as HaaS, the company sidesteps massive CAPEX hurdles for operators. It’s a low-friction model with a high-value proposition: increase line capacity by up to 40%—today, not in 2035.

Still, challenges remain. Integration with different national signaling systems, ensuring inter-operator compatibility, and navigating conservative procurement cycles in national rail agencies are not trivial hurdles. But DirecTrainS’ choice to focus first on parcel freight gives them a quicker path to commercialization with private logistics players before tackling the bureaucratic fortress of passenger rail.

Their tech’s elegance lies in its simplicity of deployment. Instead of requiring smart trains, they built smart couplings. Instead of overhauling networks, they fit into them. It’s the kind of design philosophy—modular, backward-compatible, future-ready—that usually wins in mature but stagnant industries.

If they hit TRL 8 and secure the next round of funding, the startup has a clear runway. The fact that they’ve bootstrapped to this point with only \$1 million speaks to the lean efficiency of their operations—a trait that will resonate with investors tired of overinflated cap tables and vision-over-execution hype.

The broader question DirecTrainS raises is this: what other sectors are overdue for an aerospace-grade rethink? Their story is a case study in what happens when you apply first-principles engineering to old systems with fresh urgency.

🔍 Fact Checker Results

✅ Claim Validated: DirecTrainS passed a real-world test in France with full-scale, 22.5-ton wagons
✅ TRL Status Confirmed: Currently operating at TRL 7, aiming for TRL 8 within 18 months
✅ Unique Advantage: Requires no modification to existing rail systems or rolling stock

📊 Prediction: Rail Tech Startups Will Surge in VC Focus

As nations ramp up decarbonization and urban congestion continues to worsen, investors will increasingly turn toward rail tech as the next frontier of logistics disruption. DirecTrainS is well-positioned to ride this wave, especially if it secures early contracts with parcel delivery giants like DHL or FedEx in Europe or the U.S. Expect a surge in interest in modular rail systems, dynamic routing, and hardware-software integrated transport platforms within the next 24 months.