About this report
The transport sector is responsible for more than half of global oil demand and around one-quarter of global CO2 emissions from fuel combustion. Therefore changes in transportation are fundamental to achieving energy transitions globally. Yet while rail is among the most energy efficient modes of transport for freight and passengers, it is often neglected in public debate.
The Future of Rail examines how the role of rail in global transport might be elevated as a means to reduce the energy use and environmental impacts associated with transport.
Rail is among the most energy efficient modes of transport for freight and passengers - while the rail sector carries 8% of the world’s passengers and 7% of global freight transport, it represents only 2% of total transport energy demand.
Trends in conventional, high-speed, urban and freight rail
Most conventional rail networks today are located in North America, Europe, China, Russia, India, and Japan. These regions make up about 90% of global passenger movements on conventional rail with India leading at 39%, followed by China at 27%, Japan at 11% and the European Union at 9%. However conventional rail has shown little change across these regions over the past decades.
High-speed rail provides an important alternative to aviation while urban rail provides a solution to cities impacted by congestion and air pollution. Growth has been most notable in China, which has overtaken all other countries in terms of network length of both types within a single decade.
Today movement of freight by rail is concentrated in China and the United States, each of which accounts for about one-quarter of global rail freight activity, and Russia, which accounts for one-fifth. Minerals, coal and agricultural products account for the bulk of total freight rail activity.
Looking to the future
The future of rail will be determined by how it responds to both rising transport demand and rising pressure from competing transport modes.
Rising incomes and populations in developing and emerging economies, where cities are growing exponentially, are set to lead to strong demand for more efficient, faster and cleaner transportation transport, but the need for speed and flexibility tend to favour car ownership and air travel.
Rising incomes also drive demand growth in freight, where higher incomes, have sharply increased demand for rapid delivery of higher value and lighter goods. The rail sector has important advantages to exploit in competing for business, but this will require additional strategic investments in rail infrastructure, further efforts to improve commercial competitiveness, and technological innovation.
The Future of Rail outlines in a Base Scenario how the railway system and its energy needs are projected to evolve to 2050 on the basis of announced policies, regulations and projects.
A more ambitious High Rail Scenario rests on three main pillars: minimising costs per passenger-kilometre or tonne-kilometre moved, maximising revenues from rail systems, and ensuring that all forms of transport pay not only for the use of the infrastructure they need, but also for the adverse impacts they generate. This scenario shows the extent to which a significant shift of passengers and goods to rail transport could be achieved, highlighting environmental and financial implications and the policy instruments which might be deployed.
Total energy demand for the rail sector in 2050 is around 42% more than in the Base Scenario. Yet despite increases in activity, rail transport still accounts for only 4% of total transport energy demand in 2050. In both of the scenarios the rail sector experiences strong electrification, and therefore energy diversification.
Focus on India
India’s railway system has played a fundamental role in the country’s development, transporting people and goods throughout its vast territory, integrating markets and connecting communities.
Rail passenger traffic in India has increased by almost 200% since 2000 and freight traffic by 150%, yet latent demand for mobility in India remains huge. For example, on average, each Indian travels about 3 kilometres per day by privately owned road vehicle, compared to 17.5 kilometres in Europe. In fact, rail activity in India is set to grow more than any other country.
Today, the conventional rail system in India comprises a total route length of almost 68000 km, shared between passenger and freight transport. Metro systems exist in 10 Indian cities, with about 515 km of track in operation and an additional 620 km of metro rail under construction. A further 600 km of metro lines are planned for the next few years.
For now, India does not have any high-speed rail. However, in 2015 India and Japan signed an agreement to develop a high-speed rail line connecting the cities of Ahmedabad and Mumbai, to come into operation in 2023.
Seven other high-speed lines are currently under consideration. Once completed, they would connect the four cities that constitute the Golden Quadrilateral (Delhi, Mumbai, Kolkata and Chennai) plus other intermediate cities.