CANADA RAIL FREIGHT TRANSPORT MARKET- GROWTH, TRENDS, COVID-19 IMPACT, AND FORECASTS (2023-2028)

The Canadian rail freight transport market is expected to register a CAGR of 3.5% during the forecast period.

Key Highlights

• The freight rail sector of Canada's economy is its backbone, moving more than 320 billion dollars worth of goods annually across a coast-to-coast network. Almost all sectors of the Canadian economy are served by its freight trains, including manufacturing, agriculture, natural resources, wholesale, and retail.
• The export and import of goods are essential to Canada's economic development and standard of living, and the nation's freight trains make sure that these goods reach their destinations as quickly and cheaply as possible.
• Canadian railways transported 30.1 million tonnes of freight in June 2022, edging up 1.3% from June 2021 and the second consecutive month of the year-over-year increase in tonnage. Large increases in loadings of iron ores and energy products offset the ongoing declines in grain shipments.
• Also contributing to the overall increase were freight loadings from US rail connections, which reached 3.9 million tonnes in June 2022, a 9.2% increase from June 2021.

Canada Rail Freight Transport Market Trends

Government initiatives, investments and Technological innovation in rail freight industry has driven the market

Every industry needs innovation. The resurgence of the rail sector is all about incorporating everything high-tech and intelligent, whether it be holographic projection, augmented reality, improved fuel management systems, 3D laser scanners for freight visibility solutions, or machine learning.

The Automated Vehicles Comprehensive Plan, for instance, was created by the U.S. Department of Transportation to increase rail safety, encourage cooperation and transparency, transform the regulatory landscape, and get the transportation system ready for a variety of disruptions.Investment in new technologies is essential to monitor thousands of miles of lines and prevent human involvement as railways expand. The use of data and artificial intelligence to generate insights that can improve services and save costs will receive a lot of attention.

Also, through initiatives such as the National Trade Corridors Fund and the Rail Safety Improvement Program, the Government of Canada is investing in well-functioning trade corridors to help Canadians compete in key global markets, trade more efficiently with international partners, and keep Canadian supply chains competitive which inturn is contributing the revenue growth in rail freight transport sector

Increase in Rail freight revenue use of Artificial Intelligence and Big Data in Rail Planning

Large-scale data gathering and analysis, along with AI-based tools and machine learning, are being utilised to demonstrate new insights that may improve decision-making and produce strategic business outcomes.

Predictive analytics, asset management, passenger information systems, and data management platforms are all made possible by the use of big data in the rail industry. To further enhance the security, safety, and dependability of the infrastructure, smart railway sensors assess a wide range of data points. The availability of rail backup is increased by the ability of train operators to schedule repairs in advance of any breakdowns. IoT sensors are being developed by startups and scale-up businesses to gather information about rail infrastructure's nearly every component, including railcars, rails, and signalling units.

New technological trends like improved digitization have led to the optimization of transport expenditure and efficient planning of infrastructure in rail transport leading to growth in rail freight transport market

Canada Rail Freight Transport Market Competitor Analysis

Canadian National Railway ( CN ) and Canadian Pacific Railway ( CPR ) are the two dominant freight rail operators in Canada and are both Class I railways, meaning their revenues exceeded USD 250 million in the past two years. Of total Canadian rail transport industry revenues, CN accounts for over 50% and CPR for approximately 35%. Paige Logistics Ltd, eShipper, M3 Transport, Excel Transportation, MSolution Groups, Alpha Logistiques, Liberate Logistics, Fastfrate are other market participants in Canada Rail Freight Transport Market.

Additional Benefits:

• The market estimate (ME) sheet in Excel format
• 3 months of analyst support