Global Rail Freight Market 2018-2023

December 16, 2018

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Introduction

Rail freight has a major role in European and American freight transport system. In Europe, Its environmental friendliness provides additional value by helping Europe in reducing carbon emission targets. Each freight train removes ~50 -70 trucks from the roads, reducing carbon emissions, traffic congestion and improving safety.

 

Market Dynamics

One of the major challenges for rail freight market in the US is a substitution of coal by natural gas in power generation. Rail transport has always lagged behind road transport due to first and last mile transport often required in rail freight movement. Low oil prices over the past 3 years have further dented the growth of rail freight whereas making truck freight even more competitive. The high energy tax burden on the rail freight in the US and Europe is a major challenge to rail freight market. The advent of new digital marketplaces, fuel economy improvement technologies and ADAS have made road transport even more shipper friendly.

So, is the growth period for rail freight over? Well. Not exactly. The system saves the US, billions of dollars through reduced energy consumption and reduced air pollution. The rail freight system needs to improve its processes and make it shipper friendly. The deployment of digital technology on rolling stock will do just that. It will make it possible to enhance the reliability and safety of operations at the same time making them more transparent.

 

Market Size

The rail freight volume remained very much stable during 2000-2013, as compared to road freight which grew by 7% during the same period. The overall share of rail freight in Europe  came down to ~17% in 2013 from ~20% in 2000. The road freight share, on the other hand, grew from ~72% to ~75% in the same duration. The rail freight market across the globe is in dire need of better policies supporting the growth of railroad and intermodal freight transport.

 

Competitive Landscape

In recent years, trends in infrastructure charges, especially compared with other modes of transport, have significantly impacted the competitiveness of rail freight operators. The market dominance of rail freight operators is more regionalized now than ever. For example.BNSF Railway and Union Pacific Railroad have a strong presence in the Western US, and CSX Transportation and Norfolk Southern are predominant in the Eastern US. This market has also seen frequent merger to reduce competition and maintain healthy freight rates over past 2 decades.

This report includes: 

1. Market Size
2. Market Segmentation
3. Market Forecast (Volume and Value)
  • By Geography -( Africa, Asia, Europe, Middle East, Latin America and North America)
  • By Cargo type – (Dry bulk, Vehicles, Machinery and Consumer goods)
  • By Mode – (Domestic and Ports Intermodal
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