Fully trained: Freight volumes are expected to grow with the overall economy, boosting demand

The Rail Transportation industry is emerging as the mainstay in Canadian freight transportation. During the recession, the industry found itself at its lowest point in decades. This decline was short lived, however, as industry revenue recovered in the following years, leaving operators well positioned to expand during recovery and after. Over the coming years, the industry may benefit from upcoming capital programs, which can become revenue-generating segments in the future...read more.

Industry Statistics & Market Size
Annual Growth 13-18
Forecast Growth 18-23

Industry Threats & Opportunities

  • Revenue derived from fuel surcharges has declined significantly in recent years
  • The average number of tonnes per carload increased during the period, as upgraded trains were capable of handling heavier workloads
  • Rail carriers depend heavily on expensive infrastructure
  • Industry Report - Industry Locations Chapter

    The location of Rail Transportation establishments in Canada is primarily dependent on population trends and the movement of trade. With a population of more than 36.0 million diffused over a large geographic area, most of the Canadian population lives in the southern part of the country, which is also home to 17 of Canada’s largest cities. For instance, Ontario is the most populous province in Canada, and the region is consistently one of the top destinations for imports and exports into and out of Canada. In 2018, Ontario is estimated to account for 34.4% of all industry establishments, as well as 38.7% of the total Canadian population.Quebec is home to an estimated 26.0% of the nation’s manufacturing facilities, as well as 22.9% of all Canadian residents. Mor...purchase to read more.

    Additional Insights for the Rail Transportation Industry

    IBISWorld identifies 250 Key Success Factors for a business.The most important for the Rail Transportation Industry are

  • Ability to effectively manage risk
  • Production of premium goods/services
  • Market research and understanding
  • IBISWorld analysts also discuss how external factors such as Total trade value and External competition for the Rail Transportation industry in the Rail Transportation industry impact industry performance..

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    What's in this report

    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, tourist and scenic trains, urban rapid transit and switching and terminal railways.

    Industry Products
  • Intermodal freight transportation
  • Liquid bulk freight transportation
  • Passenger transportation
  • Dry bulk freight transportation
  • Other services
  • Other freight transportation
  • Industry Activities
  • Transporting freight by mainline railways
  • Transporting freight by short line railways
  • Transporting passengers by railways
  • Table of Contents

    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources
    Industry Statistics Snapshot
    Industry Structure
    Executive Summary
    Executive Summary
    Key External Drivers
  • Total trade value
  • External competition for the Rail Transportation industry
  • Total retail sales
  • Demand from agriculture, forestry, fishing and hunting

  • Current Performance
  • Effects of oil prices
  • Capital investment
  • Industry costs
  • Chart: Revenue Growth

  • Industry Outlook
  • Steady performance
  • Capital investment
  • Table: Rail Transportation Industry Revenue Outlook

  • Industry Life Cycle
  • Life cycle reasons
  • Chart: Benchmarking - Rail Transportation Industry Lifecycle vs The Economy

  • Supply Chains
    Key Buying Industries
  • Agriculture, Forestry, Fishing and Hunting In Canada
  • Mining In Canada
  • Coal Mining in Canada
  • Manufacturing In Canada
  • Petrochemical Manufacturing in Canada
  • Car & Automobile Manufacturing in Canada
  • Thermal Power in Canada
  • Consumers in Canada

  • Key Selling Industries
  • Petroleum Refining in Canada
  • Train, Subway & Transit Car Manufacturing in Canada

  • Products & Services
  • Dry bulk freight transportation
  • Intermodal freight transportation
  • Liquid bulk freight transportation
  • Other freight transportation
  • Other services
  • Passenger transportation
  • Chart: Rail Transportation Industry Products and Services Segmentation

  • Demand Determinants
    Major Markets
  • Other and mixed loads
  • Fuels & chemicals
  • Agriculture
  • Metals and minerals
  • Forest
  • Machinery & automobile parts
  • Coal
  • Paper
  • Chart: Major Market Segmentation for the Rail Transportation Industry

  • International Trade
    Business Locations
    Chart: Business Locations by State
    Market Share Concentration
    Key Success Factors
    Cost Structure Benchmarks
  • Chart: Cost Structure Benchmarking – Sector vs Rail Transportation

  • Basis of Competition
    Internal competitionExternal competition
    Barriers to Entry
  • Table: Barrier to Entry Checklist for the Rail Transportation Industry

  • Industry Globalization
    Canadian National Railway Company, Canadian Pacific Railway,
  • Table: Canadian National Railway Company - financial performance
  • Table: Canadian Pacific Railway - financial performance

  • Capital Intensity
  • Chart: Level of Capital Intensity for the Rail Transportation Industry
  • Chart: Tools of the Trade: Growth Strategies for Success

  • Technology & Systems
    Revenue Volatility
  • Chart: Volatility vs Industry Growth

  • Regulation & Policy
    Industry Assistance
    Table: Industry Data for the Rail Transportation Industry
  • Industry Revenue (2009-2023)
  • Industry Gross Product (2009-2023)
  • Establishments (2009-2023)
  • Businesses (2009-2023)
  • Employment (2009-2023)
  • Wages (2009-2023)
  • Total trade value (2009-2023)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
    Class I Rail Carriers
  • Companies with revenue exceeding $250.0 million like Canadian National Railway, Canadian Pacific Limited and VIA Rail Canada Inc., and their related operations.
  • Intermodal
  • Intermodal operations involve more than one mode of transport to complete the movement of shipments.
  • Locomotive
  • The engine portion of the train that moves the entire trains. This section does not carry any payloads.
  • Revenue Tonne-Kilometre
  • A unit of measure for freight transport representing the revenue generated from transporting one tonne of goods over a distance of one kilometre.
  • What Our Customers Say

    Why buy this report?

    IBISWorld’s Rail Transportation market research report can be used to help you: understand market size and growth potential; major companies; draft business plans and pitch books; and conduct benchmarking and SWOT analysis. Our industry analysis highlights macro industry trends in the overall sector and micro trends faced by companies that do business in the industry. The industry report also provides key industry statistics and 5-year forecasts to anticipate future industry prospects so you can decide with confidence.

    IBISWorld industry market research reports enable you to:
    • Find out about key industry trends
    • Identify threats and opportunities
    • Inform your decisions for marketing, strategy and planning
    • Quickly build competitive intelligence
    This report on Rail Transportation:
    • Provides Market Size information to assist with planning and strategic decisions.
    • Includes the necessary information to perform SWOT, PEST and STEER analysis.
    • Helps you understand market dynamics to give you a deeper understanding of industry competition and the supply chain.
    • Analyses key performance and operational metrics so that you can benchmark against your own business, that of your customers’ businesses, or your competitors’ businesses.
    The Rail Transportation market research report includes:
    • Historical data and analysis for the key drivers of this industry
    • A five-year forecast of the market and noted trends
    • Detailed research and segmentation for the main products and markets
    • An assessment of the competitive landscape and market shares for major companies
    • And of course, much more

    IBISWorld reports on thousands of industries around the world. Our clients rely on our information and data to stay up-to-date on industry trends across all industries. With this IBISWorld Industry Research Report on Rail Transportation, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

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