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The Rail Freight Challenge for Emerging Economies

Author

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  • Bernard Aritua

Abstract

Moving more freight by rail and waterways would reduce greenhouse gas emissions, truck-induced congestion, and noise pollution and contribute to the integrated logistics that are now a hallmark of global supply chains. The timing for the shift is right, because many emerging economies are making significant investments in railways and shippers are responding to public sentiment to reduce the negative impacts of road-related logistics. In the past, most railway organizations adopted a “build and they shall come” approach, modeled on the proposition that lower rail transportation costs would inevitably lead to modal shift. That approach is no longer viable. Successful railways now focus on understanding the logistics of targeted freight and positioning rail transport services as part of an overall logistics system aimed at meeting customers’ needs. By responding to new trends in logistics and partnering with road haulers, port operators, forwarders, intermodal terminal operators, and third-party logistics companies to provide the seamless service delivery required by changing supply chains, rail freight organizations in Europe and North America have regained modal share or reversed a trend of falling shares. Emerging economies can learn from their experience. The Rail Freight Challenge for Emerging Economies presents examples and lessons of good (and not-so-good) practice. It summarizes what successful rail freight organizations have done to increase market share and provides options for policy makers. The report is intended not to prescribe solutions but to inform decisions and broaden the discussion of options open to policy makers and senior officials in rail organizations in their country contexts.

Suggested Citation

  • Bernard Aritua, 2019. "The Rail Freight Challenge for Emerging Economies," World Bank Publications - Books, The World Bank Group, number 31089, December.
    • Handle: RePEc:wbk:wbpubs:31089
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