Commuter Rail Systems
Description
Companies in this industry operate local and suburban commuter rail systems. Major companies include China Railway, MTR Corporation (Hong Kong), Metropolitan Transport Authority, SNCF (France), Tokyo Metro, and VR Group (Finland).
Population growth and urbanization are among the forces driving global demand for commuter rail. However, due to the COVID-19 pandemic and the emergence of hybrid working, demand for commuter rail has declined.
The US commuter rail industry includes less than 20 companies with combined annual revenue of about $720 million. In addition to MTA New York City Transit Authority, leading US providers include Metra (Chicago), Massachusetts Bay Transit Authority (Boston), New Jersey Transit (Newark), and Southeastern Pennsylvania Transit Authority (Philadelphia).
The commuter rail industry does not include cable car, monorail, light rail, or subway systems, although some companies in the industry may operate these systems in addition to commuter rail systems.
COMPETITIVE LANDSCAPE
Demand is driven by population growth and density, particularly in metropolitan areas. The profitability of individual companies depends on efficient operations. Large companies have advantages in absorbing large operational and capital costs. Small companies can compete effectively by entering new markets. The US industry is highly concentrated: a handful of companies generate most of the industry's revenue.
PRODUCTS, OPERATIONS & TECHNOLOGY
Commuter rail services operate local and suburban routes, primarily during peak morning and evening travel periods. Commuter rail uses technology common to existing freight railroad systems, has stations typically spaced 2-7 miles apart; and operates at moderate speeds (18-55 miles per hour). Urban transit systems, which include commuter rail systems, make up more than 10% of the transit and ground passenger transportation industry.
Commuter rail systems may own and operate their own lines, or operate on freight railroad or Amtrak lines through trackage rights agreements. They can also negotiate "purchase of service" agreements whereby freight railroads operate commuter service using the commuter railroad's equipment. Maintenance services may also be outsourced to a freight carrier or Amtrak.
Commuter rail companies may be privately or publicly held, but services in the US are primarily operated by transit authorities or districts, which have governmental authority to secure right-of-way access, impose taxes, and operate police forces.
Rolling stock for commuter rail companies includes locomotives and multiple-unit (MU) carriages, as well as control cars and regular passenger cars. Locomotives and MUs (self-propelled, bi-directional passenger rail cars that work in tandem) may be powered by electric, diesel, or diesel-electric systems. Control cars are non-powered cars that can control operation of the train; control cars with passenger accommodation are called cab cars. The cost of freight locomotives cost about $3 to $4 million each, while passenger train locomotives typically cost about $5 million each, according to the National Academies Press.
The efficiency of commuter rail systems is largely measured by on-time performance, the difference between scheduled and actual arrival times. Commuter rail systems have their own definitions of "late," (typically 5-6 minutes behind schedule), which are tracked and posted in regular performance reports.
Population growth and urbanization are among the forces driving global demand for commuter rail. However, due to the COVID-19 pandemic and the emergence of hybrid working, demand for commuter rail has declined.
The US commuter rail industry includes less than 20 companies with combined annual revenue of about $720 million. In addition to MTA New York City Transit Authority, leading US providers include Metra (Chicago), Massachusetts Bay Transit Authority (Boston), New Jersey Transit (Newark), and Southeastern Pennsylvania Transit Authority (Philadelphia).
The commuter rail industry does not include cable car, monorail, light rail, or subway systems, although some companies in the industry may operate these systems in addition to commuter rail systems.
COMPETITIVE LANDSCAPE
Demand is driven by population growth and density, particularly in metropolitan areas. The profitability of individual companies depends on efficient operations. Large companies have advantages in absorbing large operational and capital costs. Small companies can compete effectively by entering new markets. The US industry is highly concentrated: a handful of companies generate most of the industry's revenue.
PRODUCTS, OPERATIONS & TECHNOLOGY
Commuter rail services operate local and suburban routes, primarily during peak morning and evening travel periods. Commuter rail uses technology common to existing freight railroad systems, has stations typically spaced 2-7 miles apart; and operates at moderate speeds (18-55 miles per hour). Urban transit systems, which include commuter rail systems, make up more than 10% of the transit and ground passenger transportation industry.
Commuter rail systems may own and operate their own lines, or operate on freight railroad or Amtrak lines through trackage rights agreements. They can also negotiate "purchase of service" agreements whereby freight railroads operate commuter service using the commuter railroad's equipment. Maintenance services may also be outsourced to a freight carrier or Amtrak.
Commuter rail companies may be privately or publicly held, but services in the US are primarily operated by transit authorities or districts, which have governmental authority to secure right-of-way access, impose taxes, and operate police forces.
Rolling stock for commuter rail companies includes locomotives and multiple-unit (MU) carriages, as well as control cars and regular passenger cars. Locomotives and MUs (self-propelled, bi-directional passenger rail cars that work in tandem) may be powered by electric, diesel, or diesel-electric systems. Control cars are non-powered cars that can control operation of the train; control cars with passenger accommodation are called cab cars. The cost of freight locomotives cost about $3 to $4 million each, while passenger train locomotives typically cost about $5 million each, according to the National Academies Press.
The efficiency of commuter rail systems is largely measured by on-time performance, the difference between scheduled and actual arrival times. Commuter rail systems have their own definitions of "late," (typically 5-6 minutes behind schedule), which are tracked and posted in regular performance reports.
Table of Contents
- Industry Overview
- Quarterly Industry Update
- Business Challenges
- Business Trends
- Industry Opportunities
- Call Preparation Questions
- Financial Information
- Industry Forecast
- Web Links and Acronyms
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