Rail freight transportation is the carriage of goods from a point of loading, or goods station, to a point of unloading, again a station capable of handling the loading and unloading of the goods carried. These goods are generally heavy in bulk and of low value in relation to their bulk. Examples include coal, building materials, iron and steel. Freight rail companies’ customers are mainly businesses in the heavy industry sector such as manufacturing, mining, oil and gas or logistics companies.
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The market was valued at $269 billion in 2017, and is expected to register high growth rates due to increasing investments in transportation networks in remote areas and increasing connectivity in emerging economies such as India, China, and Brazil, increasing government investments, low oil prices and increasing adoption of big data analytics.
Asia- Pacific was the largest region in the rail freight market in 2017, accounting for about half of the global market share.
The rail freight global market is split into the following market segments: intermodals, tank wagons and freight cars.
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China was the biggest player in the market in 2017, accounting for almost one-fifth of the rail freight global market share. This is mainly due to the presence of an extensive transportation network, high disposable income and a large customer base which includes both B2B and B2C customers. China followed by the USA as the next largest country in the market.
The top five competitors in the market are CN Railway, SBB Cargo, SNCF, DB Schenker, and Duetsche Bahn AG. CN Railway provides a range of services in equipment specifications, customs brokerage service, transload and distribution, business development & real estate, and private car storage.
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