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Global rail logistics market expected to grow: report


LONDON, U.K.–According to the latest market study released by Technavio, the global rail logistics market is expected to grow at a CAGR of nearly 4% during the forecast period.
The research report, titled ‘Global Rail Logistics Market 2017-2021’, provides an in-depth analysis of the market in terms of revenue and emerging market trends. This market research report also includes up to date analysis and forecasts for various market segments and all geographical regions.
The important market drivers responsible for the growth of the global rail logistics market are an increased efficiency of rail freight over truck freight, reduction in traffic and road congestion in highways, and growth of rail intermodals. The global rail logistics market is forecast to be valued at USD 210.13 billion by 2021.

On an average, rail freight transportation is 4.5 to 6 times more fuel efficient that transport through trucks. Rail freight fuel efficiency varies between 150 ton-mile-per-gallon to 520 ton-mile-per-gallon, whereas truck freight fuel varies between 70 ton-mile-per-gallon to 140 ton-mile-per-gallon.

“Intermodal freight transportation is forecast to be the segment that will showcase the highest growth rate, with a CAGR of almost 5% through the forecast period. This growth will be driven by the cost-efficient solutions to transport of complex commodities provided by the intermodals. The intermodal segment accounted for a majority 41.72% of the global market,” says Sharan Raj, one of the lead analysts at Technavio for logistics research.
The high demand for intermodal transportation has brought in many investments from rail operators and manufacturers for the development and integration of intermodal technologies for better efficiency. Canadian National Railways announced an investment of USD 250 million towards the development of an intermodal and logistics hub in Milton, Ontario, during the forecast period. Additionally, CSX, a transportation company in the US offering logistics solutions, has developed tracking systems that help shippers track their intermodal containers from the source to the destination point.

Tank wagons are cylindrical containers that are used for storage and transportation of liquids, liquefied gases, and oil. The growth of this segment can mainly be attributed to the growth of the oil and gas industry. In 2015, the US alone produced almost 9.4 billion barrels of oil per day. The companies involved in this industry rely completely on railroads for the transportation of these commodities to the refineries. Rail freight transportation market in the US by oil and gas industry accounted for 32.16% volume share in 2015, and is expected to account for 33.15% in 2016.
APAC accounted for 10.11% of the world’s oil production in 2015, with China in the lead, producing 4.22 million barrels of oil and related products per day. The region totally accounted for the production of 15.14 million barrels of oil per day. The high volume of these products directly translates to a healthy demand for tank wagons, thus driving the market growth.

The freight car segment of the global rail logistics market is expected to maintain a steady position in the market through the forecast period. Freight car transportation includes flat cars, open cars, box cars, and sliding wall freight cars. Freight cars are meant to carry goods up to 100 tons and are primarily used in the transportation of coal, logs, and vehicle equipment.
“Rail freight operators across the globe are investing in redesigning freight cars to increase the capacity to accommodate an increased volume of goods in a single trip, and to increase the efficiency of each container. In the US, few manufacturers have redesigned rail cars to increase the weight capacity of the freight car from 2,200 tons to almost 3,600 tons. Such innovations will bring in demand for this segment of the global rail logistics market,” says Sharan.
The top vendors highlighted by Technavio’s research analysts in this report are:
• CN Railway
• DB Schenker
• SBB Cargo
• Union Pacific


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