Fully trained: Domestic manufacturing and retail activity have generated demand for industry services

The Rail Transportation industry in Canada is emerging as a mainstay in Canadian freight transportation. Two-fifths of Canada's rail traffic moves transborder and overseas, while one-sixth of Canada's exports rely on rail transportation. Given this strong connection to trade volumes, the recovery of total trade value has significantly bolstered industry revenue and profit. As the Canadian economy has continued to expand during the five-year period, consumers have become increasingly willing to purchase commercial goods. However, fuel prices have remained a constant concern for industry operators, both as a purchase cost and a potential revenue stream...read more.

Industry Statistics & Market Size
Revenue
$17bn
Annual Growth 14-19
1.3%
Forecast Growth 19-24
Profit
Employment
33,079
Businesses
65

Industry Threats & Opportunities

  • Revenue derived from fuel surcharges has declined significantly in recent years
  • Revenue tonne-kilometres per employee has experienced strong growth
  • Larger rail carriers will likely seek to expand operations as the economy improves
  • Industry Report - Industry Investment Chapter

    The Rail Transportation industry in Canada has a high level of capital intensity, primarily because operators must develop their own infrastructure and continuously look to reinvest capital. Rail cars can also be heavily specialized, which further contributes to the industry’s high capital costs. Additionally, a higher rate of capital depreciation increases the depreciation payments on an asset in the earlier years, which enables operators to benefit from lower taxable income. In turn, this structure encourages operators to buy new assets. Overall, the typical industry operator is estimated to spend $0.50 on capital investments for every $1.00 spend on labour inputs in 2019.Operators in the industry have increasingly invested in automated technologies. One...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
  • Seasonality
  • Freight services
  • Passenger services

  • Major Markets
  • Other and mixed loads
  • Fuels and chemicals
  • Agriculture
  • Metals and minerals
  • Forest
  • Coal
  • Machinery and automobile parts
  • 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
    WagesPurchasesProfitDepreciationMarketingRentUtilitiesOther
  • 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 Limited,
  • Table: Canadian National Railway Company - financial performance
  • Table: Canadian Pacific Railway Limited - 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
    Includes:
  • Industry Revenue (2010-2024)
  • Industry Gross Product (2010-2024)
  • Establishments (2010-2024)
  • Businesses (2010-2024)
  • Employment (2010-2024)
  • Wages (2010-2024)
  • Wages (2010-2024)
  • Purchases (2010-2024)
  • Profit (2010-2024)
  • Depreciation (2010-2024)
  • Marketing (2010-2024)
  • Rent (2010-2024)
  • Utilities (2010-2024)
  • Other (2010-2024)
  • Total trade value (2010-2024)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
    Class 1 Rail Carriers
  • Companies and their related operations with revenue exceeding $250.0 million.
  • Intermodal
  • Operations that 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 offers insightful industry analysis and research into the market at the national level. IBISWorld’s in-depth industry market research is presented in a logical and consistent format. The industry report contains key industry statistics, market size, industry trends, and growth and profit forecasts for a 5-year outlook period.

    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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