Rails Competitive Position ?

Road and rail lock hornsas the most popular mode choices for moving freight. They complement each other now with intermodal railcars, where you can put a truck trailer on the back of a railcar. It’s a neat invention, so the two rivalling modes are able to share business with trucks getting the ‘final mile’ done. This works as long as the customer doesn’t mind dealing with 2 different transport providers!

If they can’t share business together, who wins a 1v1 head-to-head? Trucks or railroads? By far the most important factor is distance.

What else affects the choice? One the one hand, rail doesn’t transport very valuable cargo at-all compared to other modes. Look at your smartphone! Valuable things today are getting lighter and smaller, which is more suited to trucks. However, the more environmentally friendly option has to be rail, and since it’s also more fuel efficient…

This is a real tug of war to keep an eye on. Ultimately, the cornerstone value proposition for rail is its speed, flexibility and reliability over a distance.

Chris Morrissey

Chris started in financial advisory, assembling client portfolios with pension companies and investment banks. Following that, he worked at an agricultural commodities trader in London and now various "fintech" start-ups. He's also studying business full-time at Lancaster University. Feel bewildered by the stock market? Chris will help you get things under control.

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