Simon McKeever
Chief Executive, Irish Exporters Association
Explore the limitations, efficiencies and environmental benefits of rail freight for business logistics to make an informed decision.
Rail freight offers economic, environmental and operational benefits, but businesses should thoroughly assess its suitability based on their needs.
Rail freight volume and fuel costs
Rail freight can be more cost-effective for transporting large volumes of goods over long distances compared to road or air freight. Due to this scaling, trains are also more fuel-efficient than trucks, which can result in lower fuel costs and, subsequently, lower overall transportation costs. However, as it is more geared towards large shipments, smaller quantities may not yield tremendous cost savings.
Rail freight service consistency
Rail services typically run on fixed schedules, providing reliable transit times and helping businesses plan their logistics more effectively. Unforeseeable incidents such as repairs and construction can occur with every means of transport. On rail lines, signals can fail, or track switches can be disrupted. At least trains cannot get stuck in sudden traffic jams like road freight because line capacities are regulated by timetables. Therefore, short-term delays are rarer.
We are witnessing an increase in businesses opting to use rail freight.
Limited time and location flexibility
The high degree of planning in rail transport has a downside: limited flexibility. A freight train must stick to the timetable and cannot depart spontaneously to carry out an unexpected delivery order. In addition, the freight train can only access locations with rail sidings — trucks are still indispensable for door-to-door transport, particularly for the first and last mile.
Capacity constraints and proximity
Moreover, an underdeveloped rail infrastructure can be a stumbling block for rail freight. The size of the rail network in any location brings capacity constraints — only as many trains can run as the rail network allows. This can lead to unwanted waiting times. If you do not have immediate access to rail lines at your facility, coordination with trucks for the first and last mile may also need to be factored into your logistics.
Lower greenhouse gas emissions
Shipping by rail is by far one of the most environmentally responsible transportation modes. Rail transport produces significantly lower greenhouse gas emissions per ton-mile compared to road transport. Therefore, it can help exporters reduce their carbon footprint.
We are witnessing an increase in businesses opting to use rail freight as it increasingly aligns with corporate sustainability goals and regulatory requirements related to environmental protection.
