The rail freight transportation is carriage of goods or products from a point of loading, or goods/products station, to a point of unloading, again a station accomplished of handling the loading & unloading of the goods or products carried. These goods or products are generally heavy in bulk and of low value in the relation to their bulk. Some examples include building materials, coal, iron and steel. Freight rail manufacturers’ customers are primarily businesses in the heavy industry sector for instance manufacturing, oil & gas, mining, or logistics companies.
An extensive range of customers chooses rail as the finest option for their freight. Products range from the toys, auto parts to construction materials, steel coils and biomass. Implementing new technology, coupled with developing infrastructure are some of the key factors for driving rail freight and services market growth.
As per study, “Rail Freight Global Market Report 2020-30: Covid 19 Impact and Recovery” the key companies that are currently operating in the global rail freight market include SBB Cargo; CN Railway; SNCF; Duetsche Bahn AG, DB Schenker among others. The leading companies continue to invest as well as reduce the costs for customers.
By type, rail freight market is segregated into tank wagons, intermodals and freight cars. By destination, market is segregated into international and domestic. By freight type, market is segregated into liquid, containerized, commodities and others. In addition, by application, market is segregated into mining industry, oil & gas industry, post services, logistic industry and others.
The rail freight market is driven by rise in adoption of containerization, followed by growth in infrastructure, increase in international transportation, rise in disposable income, rapidly growing economies of developed & developing countries, growth in innovations by service providers to increase the efficiency, heavy investment in cross-border railway network, growth in urbanization, and rise in adoption of advanced technologies. However, limitations imposed on the foreign entry & other barrier is a major hindering factor for market. Moreover, growth in domestic intermodal transportation and adoption of advanced technologies are key opportunities for market. Furthermore, increase in research activities coupled with new product launches is a major trend for global market.
By geography, the global rail freight market is bifurcated as Asia-Pacific, North-America, Europe and rest of the world. The Asia-pacific region dominates the global market owing to concentrating on rebuilding & improving the framework of railways across the region. A major growth factor for rail freight movement across the region is noteworthy improvement in the business environment in most of the Asian countries over the last decade. The Philippines, Vietnam, and Indonesia are among the fastest-growing countries in the Asia-Pacific region. The North-America and Europe regions are estimated to witness higher growth rate due to increase in intra-European freight movement and growth in industrial and cross-border trade activities over the forecast period. It is expected that global rail freight market will be reached at quick pace as a result of growth in infrastructure development during the forecast period.
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Ankur Gupta, Head Marketing & Communications