The growing global rail freight industry is worth 250 billion dollars
An American-based specialist in business analysis, Research and Markets, has published a report that has singled out rail freight as a significant area of commercial growth over the next five years.
Currently, there is noteworthy international optimism that rail freight will play a big part in the world-wide economic recovery over the next five years. The sector’s economic contribution has been valued at almost 250 billion US dollars in 2020, and is predicted to rise annually by two percent in the next five years.
North America’s freight-orientated railroad system has traditionally profited from a significant share of non-containerised cargo and liquid bulk. However, according to the report, more boxed cargo is finding its way on to the rails, eroding the dominant position of long-distance trucking. Progress in the sub-continent and eastern markets is also anticipated by the new report.
Research and Markets said: “The growth of intermodal transport is boosting the transport of containerised cargo. Intermodal cargo is estimated to witness high growth over the forecast period.
“Rail freight can play a role in globalisation, in many regions, rail freight is a factor in developing local economies. In some regions of Central Asia, Eastern Europe, South Asia, Southeast Asia, and Sub-Saharan Africa characterised by groupings of many small countries, rail freight can increase economic integration by providing access to international and regional markets and connecting landlocked countries.”
The report examines the longer-term returns investors can expect from rail freight, noting that average tonnage per train is up by 80 percent in the last decade.
Nevertheless, factors such as the global pandemic and climate change legislation are working in favour of rail freight.
The report said: “The COVID-19 crisis has resulted in the shortage of truck drivers, restriction on sea and air transport in many countries and regions
“The cost of transportation through truck, sea or air has sharply risen as compared to rail freight costs. This has made the shift to rail freight a supply chain advantage.”
For more information visit www.researchandmarkets.com
21st June 2021
