Rail Freight Transportation Market in APAC – Trends and Forecasts by Technavio

29-Jul-2017 Intellasia | BusinessWire | 6:03 AM Print This Post

LONDON–(BUSINESS WIRE)–#Logistics–Technavio’s latest report on the rail
freight transportation market in APAC
provides an analysis of
the most important trends expected to impact the market outlook from
2017-2021. Technavio
defines an emerging trend as a factor that has the potential to
significantly impact the market and contribute to its growth or decline.

The market was in a growth stage driven by high freight volumes in 2016
because of the continued improvement of global economic conditions,
industrial production along with the rising demand for raw materials,
and hike in the market for container transport. The rail freight
transportation market in APAC is expected to register a CAGR of close to
4% during the forecast period.

Sharan Raj, a lead analyst from Technavio, specializing in research on logistics
sector, says, “The increase in inbound freight tonnage and inbound
freight transportation revenues was mainly due to the significant
increase in deepening of railway freight transportation and the
considerable operations of southern express trains, and white freight

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The top three emerging trends driving the rail
freight transportation market in APAC
according to Technavio
research analysts are:

  • Integration of IoT in rail freight transportation
  • Tracking and tracing systems of rail freight using GPS
  • Integration of intelligent systems in freight cars

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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.

“A recent innovation in the market is the Road-Railer. It is a truck
trailer with steel wheels for rail travel and rubber tires for road
travel. These trailers can swiftly change from the rails to highways and
back again. It allows for faster deliveries, scheduling flexibility, and
can be used for small loads,”
according to Sharan.

Tracking and tracing systems of rail freight using GPS

Railroads have made innovations to help overcome disadvantages and
compete more effectively and efficiently with trucking over short
distances for smaller loads. Intermodal is a rail service that hauls
truck trailers or containers on railroad flatcars. It features a lower
section, in which the container is loaded.

The innovations generated also incorporate environmental efficiency of
rail transportation, as it reduces the carbon emission by 53%. The
increase in rail freight transportation mode is also reducing the road
freight congestion, resulting in decreasing traffic.

Integration of intelligent systems in freight cars

Intermodal shipping combines rails and trucking. Intermodal shipping has
demonstrated a higher level of quality performance than traditional rail
freight service. Companies use EDI combined with bar codes. It is used
to provide quick response to customers. EDI is a specialized network
that companies use to exchange orders and status with their suppliers
and clients.

This system allows companies to conduct secure transactions with
customers on the Internet. This type of electronic-based distribution
reduces inventories and replenishes store stock quickly. It enables
stores to have a better selection of products with the same space. It
also accomplishes the strategic goal of quality customer service.

The key vendors are as follows:

  • Asciano
  • Aurizon
  • Guangshen Railway
  • Japan Freight Railway

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Technavio Research
Jesse Maida
Media & Marketing Executive
+1 630 333 9501
UK: +44 208 123 1770


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