Rail Transportation in Canada: Market Research Report

Market Research • Market Size • Industry Statistics • Industry Analysis • Industry Trends

Rail Transportation in Canada Market Research Report | NAICS 48211CA | Jul 2015

The right track: Recent capital investments boost railway efficiency and profitability

IBISWorld’s Rail Transportation market research report is a comprehensive guide to market size and growth prospects. Our industry reports offer strategic industry analysis of the factors influencing companies, including new product developments, economic, lifestyle and demographic influences, distribution and supply chain factors and pricing issues. Full analysis accompanies our data forecasts to illustrate how the market responds to emerging industry trends.

Report Snapshot
Industry Statistics & Market Size
Annual Growth 10-15
Annual Growth 15-20
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Industry Analysis & Industry Trends

The Canadian Rail Transport industry is displaying strong and steady growth amidst a global resurgence in train popularity. The growing attractiveness of rail is derived from the increased fuel efficiency, cost effectiveness and flexibility of this form transportation as compared with other modes of transport. These advantages are not inherent in rail transportation but are the result of increasing capital investment by industry operators over the five years to 2015. Consequently, in the five years to 2020, the industry is set to improve at a more sustainable rate and IBISWorld expects industry revenue to increase. This is because freight volumes are expected to grow as the overall economy and labour market continue to improve... purchase to read more

Industry Report - Industry Investment Chapter

The Rail Transportation industry has a high level of capital intensity, primarily because operators must develop their own infrastructure and continuously look to reinvest capital. Additionally, rail cars can be heavily specialized, which further contributes to the industry's high capital costs associated with entry to the market. In 2015, industry operators typically invest $0.30 of capital for every dollar of labour. According to the Canadian Association of Railway Suppliers, the rate of depreciation on locomotives was increased to 30.0% in 2008. A higher depreciation rate increases the depreciation payments on an asset in the earlier years, which allows operators to benefit from lower taxable income... purchase to read more


Industry ProductsRelated ReportsTable of Contents

What is the Rail Transportation Industry?

Industry operators primarily manage railways, including long-haul or mainline railways, short-haul railways and passenger railways. This industry excludes the operation of street railways and urban rapid transit, tourist and scenic trains, or switching and terminal railways.

Industry Products
Intermodal freight transportationBulk freight transportationPassengers transportation
Industry Activities
Transporting freight by mainline railways Transporting freight by short line railwaysTransporting passengers by railways

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