Foreword
Peter Nilson
Senior Editor
As we come towards the end of another year, it is clear that the key trends in rail remain similar to previous years, but with some notable developments.
As with most transport sectors, the key topic is the environmental impact. Campaigning for a great modal shift maintains strength, and the push to get travellers to pick the train over the plane has stayed and the growth of sleeper services, high-speed services, and cross-border services across Europe is a symptom of that.
The long-term impact of the EU’s fourth railway package is now having a tangible effect, as the liberalisation of the bloc’s railway networks has allowed operators to compete in new markets, notably with budget high-speed services. The technical pillar of the fourth package is supporting this through the European Rail Traffic Management System (ERTMS), allowing for a unified rail network.
Electrification is another facet of the environmental concern of rail. As networks focus on the electrification of lines, some operators are also turning to electric locomotives, hybrid locomotives, or even hydrogen power. These will continue to develop in the future.
Freight is in a healthy state, with FMI predicting that the global rail freight sector is set for a decade of sustained expansion, with a market size projected to grow from $370bn in 2025 to $602.7bn by 2035, reflecting a healthy CAGR of 5%. The previously mentioned unification of rail networks will help facilitate smoother intermodal cargo operations across larger regions.
Capital Expenditure for rail megaprojects in 2024 increased when compared to previous years, despite the number of projects breaking ground decreasing. This shouldn’t warrant concern, as many considerable megaprojects (HS2, Melbourne SRL, Central Communication Port, Rail Baltica) continue through their phases. Asia remains a hotbed for investment, spearheaded by China’s appetite for High-Speed Rail.
To help you navigate these growing areas, Future Rail will be providing sector-leading content to those with a need to know. Thank you for your continued engagement with the team here, which is forever endeavouring to be your trusted source for authoritative railway industry insight.