Global Rail Transportation Industry
Demand for rail transportation declined because of the economic recession. Freight volumes plummeted by as much as 30%, with the US and the EU particularly badly hit.
State stimulus packages and rescue plans launched in a bid to stimulate economic recovery encompassed initiatives for the transportation sector. Many of these packages are helping projects led by public sector rail operators, who rely on the government for funding.
Railway Transport Market Outlook
A rapid increase in global population, along with urbanisation, and economic development are all factors fuelling growth in the global railway transport sector. Growing awareness as to the negative impact of traffic congestion on the environment is also encouraging rail passenger traffic as an alternative to car travel. Rail transportation continues to benefit from the advantages it offers such as greater energy efficiency than water, road and air transportation, reports Global Industry Analysts.
Energy efficiency is an increasingly pivotal concern in the face of climbing fuel prices and worsening energy shortage. Due to environmental awareness and cost concerns, the demand for higher energy efficiency in the transport sector and for green transportation technology continues to benefit the global rail transportation sector. These concerns will continue to fuel demand for rolling stock, systems and services. The railway transport sector is also reliant on ongoing investments to replace and update existing rolling stock.
