A Guide to the Benefits of Rail Shipping

Train Configurations

Trains are created to transport massive quantities of cargo using several freight cars pulled by just one locomotive. This configuration enables the weight to be distributed across more axles, helping minimize the strain on each wheel and decreasing rolling resistance. Consequently, less energy is needed to move the same load compared to trucks carrying the same amount of freight.

Aerodynamics

Trains are designed in a streamlined manner that can offer better aerodynamics compared to trucks. This reduced air resistance allows trains to move more efficiently, which in turn minimizes the amount of energy required to overcome wind resistance. On the other hand, trucks, with their box-shaped bodies and less streamlined profiles, experience higher air drag that can lead to increased fuel consumption over long distances.²

Electric and Diesel-Electric Locomotives

Railways are now using diesel-electric locomotives more frequently due to their high efficiency in converting fuel into mechanical energy. The locomotives make use of diesel engines to generate electricity, which in turn powers the electric motors responsible for driving the wheels. This setup helps ensure optimal fuel usage because the engines can operate at their most fuel-efficient levels while the electric motors provide the necessary power.

Regenerative Braking

Rail systems often use regenerative braking technology to convert the energy generated during braking into electrical energy. This energy can be stored and reused within the engine, reducing the overall energy demand. By capturing and reusing energy that otherwise would be wasted in traditional braking systems, rail transportation can maximize fuel efficiency and reduce operating costs.

Continuous Motion

Once a train reaches its optimum speed, it can travel over long distances without the need for frequent stops and starts — maintaining a constant velocity. This uninterrupted motion is particularly helpful for long-haul journeys, as it reduces the energy costs associated with accelerating heavy loads from a standstill. In contrast, trucks deal with traffic signals, intersections, and frequent stops that can lead to greater fuel spend.

Volume Efficiency

Railways have the capacity to carry a significant amount of cargo in a single journey. By using long trains with multiple freight cars, goods can be transported efficiently in large quantities. This consolidation reduces the overall transportation cost per unit of goods, since the fixed costs associated with operating a train are spread across a greater volume of cargo.³ The ability to carry a higher payload per trip also can lead to significant cost savings over long distances.

Cost-Per-Unit Decrease

Rail transportation exhibits a cost structure with higher fixed costs, such as infrastructure and locomotives, and relatively lower variable costs, such as labor and fuel. As the volume of goods carried by a railcar increases, the cost per unit decreases because the fixed costs are spread over more units. This cost advantage becomes more evident when compared to other modes of transport, such as trucks. Trucks generally have higher variable costs per unit of cargo, which makes rail transportation a more cost-effective option for transporting large quantities of goods.

Train Crew Efficiency

Trains offer a highly efficient mode of transportation for moving large quantities of cargo. Generally, a single train crew can operate an extensive train with multiple freight cars. These crew members are responsible for the safe movement of the train, managing switches and signals, and adhering to schedules and safety protocols. Compared to trucking, trains have the capacity to handle a significant volume of cargo with a two-person crew, leading to reduced labor costs, since each truck requires a driver to operate.

Economies of Scale

As mentioned earlier, rail transport presents the advantage of enjoying economies of scale. When a large volume of goods is transported via a single railcar, the fixed labor expenses associated with operating a train can be spread across a greater number of cargo units. This distribution of fixed costs results in lower labor costs per unit of goods transported, because the expenses are divided over a larger volume of cargo. Therefore, rail transport can be a more cost-effective option for businesses that need to transport significant quantities of goods over long distances.

Automation and Technological Advancements

Rail transportation is experiencing an evolution in technology and automation, further reducing labor costs. These days, modern rail terminals are equipped with advanced machinery and automated systems that can assist with various tasks, such as yard operations and maintenance. The use of these technologies has streamlined operations, improved efficiency, and reduced the need for manual labor — leading to significant cost savings.
Learn more about how TrinityRail is helping to lead rail shipping innovation with platforms like Trinsight and through our participation in the RailPulse coalition.

Regulatory and Compliance Efficiency

Rail transportation is governed by regulations and safety standards that provide consistent guidelines for operations. This regulatory framework enables railroads to adopt consistent compliance procedures that reduce administrative overhead and associated labor costs. In comparison, the trucking industry often encounters diverse regulations across different jurisdictions, resulting in increased administrative burdens and labor requirements for compliance.¹¹

Reduced Greenhouse Gas Emissions

Trains are considered a more environmentally sustainable mode of transportation compared to trucks, planes, and ships.³ This is because trains have better fuel efficiency, resulting in fewer greenhouse gas emissions per ton-mile of cargo transported.³ Additionally, some trains are powered by electric or hybrid engines, which offer even cleaner energy sources and further reduce emissions. Therefore, trains can transport goods over long distances with fewer carbon dioxide (CO2) emissions.

Energy Efficiency

Rail transport is known for its high energy efficiency since it can move large quantities of goods with less energy consumption. The streamlined design of trains helps to reduce air resistance, and the optimized weight distribution lowers drag. When compared to trucks, which have a lower payload capacity and higher energy requirements per unit of cargo, rail transport significantly reduces energy consumption, leading to a lower environmental impact.⁴

Congestion Reduction

Road congestion is a major issue.  Rail transportation can divert a significant portion of freight shipping from highways to rail lines. This can lead to a smoother traffic flow with fewer trucks on the road, thereby helping to reduce delays caused by congestion and can decrease overall vehicle emissions. This benefit is especially pronounced over longer distances, during which truck congestion can be a significant problem.

Modal Shift Potential

Rail transport has the potential for modal shifting — moving goods from less environmentally friendly means, such as trucks or planes, to rail. Promoting and encouraging the shift to rail can have a significant impact on reducing carbon emissions and protecting the environment. Both governments and organizations are now recognizing the importance of this shift in creating a more sustainable future.

Reduced Accident Risks

Rail transport is one of the safest modes of goods transportation, with fewer accidents compared to road transport.⁵ Trains operate on separate tracks, which reduces the risk of collisions and accidents with other vehicles and pedestrians. The controlled environment of rail lines, with advanced signaling systems and safety protocols, is designed to reduce the chances of accidents and associated damage or loss of goods. In fact, freight rail is considered the safest way to transport goods over land.⁵ More than 99.9% of all hazardous materials transported by rail are delivered without any release caused by a train accident.⁶

Stability and Handling

Railcars are specifically designed to transport a wide variety of cargo. They feature secure loading and fastening mechanisms that help keep goods from shifting or moving during transit. With those features, railcars offer a more stable platform designed to minimize the risk of product damage. Railcars provide a fixed position and secure attachment for products, resulting in less jostling and vibration and reducing the likelihood of potential damage or breakage.

Reduced Theft

Enhanced security measures play a crucial role in the rail industry by significantly reducing the risks of theft and pilferage. Railcars can be sealed and continually monitored during the route, making it harder for unauthorized personnel to access or tamper with the cargo. The more controlled environment of rail and intermodal terminals also reinforces security measures, further reducing the likelihood of theft or unauthorized interactions with goods.

Regulatory Compliance

Rail transport is a highly regulated industry designed around safety standards and rules. Rail operators must comply with regulatory requirements regarding equipment maintenance, crew training, cargo handling, and emergency response preparedness. Strong regulatory oversight in this industry helps reduce the likelihood of incidents that could affect the quality of products during transportation.

Long-Term Contracts

Rail transport typically entails the use of longer-term contractual agreements between shippers and rail operators. These agreements offer more stability, even during times of economic fluctuations or market volatility. Entering into longer-term contracts with rail carriers can help safeguard against the effects of short-term market uncertainties, while also ensuring consistent transportation rates and uninterrupted access to rail services.

Learn more about TrinityRail’s leasing approach here.

Market Diversification

Rail transport can assist in expanding your market outreach while reducing dependency on specific regions or markets. Rail freight networks offer comprehensive coverage, connecting businesses to several markets and regions. This diversification can help mitigate the risks associated with economic downturns or market disruptions in a specific market. By utilizing rail transport to reach different market regions, businesses can adapt their shipping strategies and maintain a stable customer base — even during uncertain economic conditions.

Infrastructure Investment

Governments invest heavily in the development and expansion of rail networks, recognizing their crucial role in the supply chain.⁷ Private investment in rail infrastructure is also high, amounting to around $740 billion.⁸  This investment ensures that the rail network and transport services remain reliable and accessible to people, even during challenging economic times.

Supply Chain Resilience

Rail shipping can be a valuable addition to your supply chain, since it serves as an alternative transportation mode that is less susceptible to economic fluctuations.⁷ By incorporating more rail shipments and shipping for longer distances, you can reduce your dependency on a single mode of transportation and diversify your supply chain. This diversification helps to improve resilience and enables you to navigate market disruptions and fluctuations — allowing your supply chain to continue operating smoothly even during challenging economic periods.

Fuel Cost Management

Rail transportation is, comparatively, less affected by immediate fuel price fluctuations compared to road transport.¹⁰ The reason is that fuel costs can have a more immediate and direct impact on the prices of road transport. Rail operators generally have long-term contracts with fuel suppliers or use more stable pricing strategies, such as hedging strategies. This enables them to minimize the impact of short-term fuel price fluctuations on their shipping rates.

Existing Infrastructure

Rail transportation capitalizes on the extensive rail networks and infrastructure that have been developed over an extended period. These networks span vast distances and connect various regions, utilizing established railroad tracks, terminals, and intermodal facilities. This approach highlights the cost-effectiveness of rail transport as an alternative to other modes of transportation while promoting the efficiency of the existing infrastructure.

Shared Infrastructure

Railway networks are strategically developed to accommodate multiple railroads and shippers, facilitating shared utilization of crucial infrastructure. Through this model, different railroads can make use of the same tracks, terminals, and rail yards — optimizing resource use and reducing the need for individualized infrastructure investments. This shared infrastructure approach enables businesses to access railway transportation services without bearing the full burden of constructing and maintaining dedicated transportation facilities. As a result, the shared infrastructure model offers businesses a cost-effective means of accessing essential rail transport services while simultaneously reducing environmental waste and promoting sustainability.

Government Investment

Governments often allocate funds and resources to support the development and maintenance of rail transport infrastructure. This is because rail networks are recognized as essential components of sustainable transportation, trade, and economic growth.⁸ By providing financial assistance and forming public-private partnerships, the government can help offset the high costs involved in building and maintaining rail transport infrastructure. Consequently, businesses can benefit from a cost-effective transportation option that is both reliable and efficient.