Rail Freight Transportation Market in APAC 2017-2021
About Rail Freight Transportation
Rail freight transportation is predominantly used for the transportation of bulk commodity items, such as minerals, coal, crude oil, petroleum, natural gas, fertilizers, grains, and forest products. Demand for rail freight services for product exports is mostly confined to grains, coal, and iron ore export. Rail freight transportation is not an option in the case of express delivery as the time frame of shipping may change.
Technavio’s analysts forecast the rail freight transportation market in APAC to grow at a CAGR of 3.70% during the period 2017-2021.
Covered in this report
The report covers the present scenario and the growth prospects of the rail freight transportation market in APAC for 2017-2021. To calculate the market size, the report considers the revenue generated by different vendors through the rail freight transportation market transactions.
The market is divided into the following segments based on geography:
Technavio Announces the Publication of its Research Report – Rail Freight Transportation Market in APAC 2017-2021
Technavio recognizes the following companies as the key players in the rail freight transportation market in APAC: Asciano, Aurizon, Guangshen Railway, and Japan Freight Railway.
Other Prominent Vendors in the market are: Pacific National, MRS Logística, and China Railways (CR).
Commenting on the report, an analyst from Technavio’s team said: “One trend in the market is integration of IoT in rail freight transportation. Railway authorities in developed nations like Canada, Japan, France have evolved with time. New strategies, such as build–operate–transfer (BOT) arrangements, public–private partnerships, and complete private funding, are adopted to enhance railway reliability, safety, and punctuality.”
According to the report, one driver in the market is increased crude oil production in APAC. APAC accounted for more than 9.38% of the world's oil production in 2016. The region was led by China and India, the world's 4th and 20th biggest oil-producing nations, respectively. In the recent years, APAC's share of global oil production has been on a slow but regular decline. It is primarily a consequence of flat regional oil production during a period of rising overall global output. Many new countries in APAC have discovered large new reserves, and existing players are facing declining production from old oil fields.
Further, the report states that one challenge in the market is increasing maintenance expenses. Railroads are not economical to be used for short distances or for shipping small loads. They have a high cost of terminal handling and inflexible rail lines. Track access charges may vary from country to country. There are very few countries where fares have been a barrier in developing the transportation system. There is a fair balance between investments and what is acceptable (level of fare). The fares in India had not been increased for nine years. It is not possible to have a viable system where effectively fares have been stable for ten years in an economy with increasing inflation.
Asciano, Aurizon, Guangshen Railway, Japan Freight Railway, Pacific National, MRS Logística, and China Railways (CR).