Europe & CIS Rail Freight Transportation Market By Freight Category (Unit Trains, Carload Freight, Intermodal Freight), By Transport Area (International Transport, National Transport), By Country, Competition, Opportunities & Forecast, 2020-2030F

Market Overview:

Europe & CIS Rail Freight Transportation Market was valued at USD 8.55 Billion in 2024 and is expected to reach USD 9.79 Billion by 2030 with a CAGR of 2.28% during the forecast period. The Europe & CIS rail freight transportation market is experiencing a phase of modernization fueled by shifts in supply chain strategies and growing emphasis on sustainable logistics. Growth drivers include the rising demand for bulk commodity transport, increasing fuel cost efficiency of rail over road, and expansion of integrated logistics hubs supporting seamless cargo transfers across modes. The market is witnessing a surge in demand for freight corridors capable of handling higher volumes and faster turnaround, driven by the evolving needs of industrial and manufacturing sectors.

For instance, The European Green Deal and the Sustainable and Smart Mobility Strategy emphasize rail's central role in achieving climate neutrality by 2050, targeting a 90% reduction in transport-related greenhouse gas emissions. To meet this goal, key milestones include shifting a significant portion of the 75% of inland freight currently moved by road to rail and inland waterways, doubling high-speed rail traffic by 2030, and tripling it by 2050. The strategy also aims for rail freight traffic to increase by 50% by 2030 and double by 2050, while ensuring that all scheduled collective travel under 500 km becomes carbon-neutral by 2030. The EU plans to establish a fully operational, multimodal Trans-European Transport Network (TEN-T) with high-speed connectivity by 2050, supported by digital innovation and research initiatives under Horizon Europe to enhance rail competitiveness and reinforce Europe’s technological leadership in sustainable transport.

Market Drivers

Modernization of Railway Infrastructure

The modernization of railway infrastructure is a key driver for the growth of rail freight transportation, enhancing efficiency, capacity, and reliability across logistics networks. Upgraded tracks, advanced signaling systems, and electrification projects are transforming traditional rail corridors into high-performance freight routes. Investments in modern infrastructure allow for higher axle loads, faster transit times, and reduced maintenance disruptions, making rail a more attractive option for shippers. Enhanced terminals with digital coordination tools and automated handling equipment are improving intermodal connectivity and reducing cargo dwell times. Modernization efforts also contribute to improved safety, lower energy consumption, and better integration with smart mobility systems. These upgrades are often supported by national and regional funding programs, recognizing rail's strategic importance in reducing congestion and supporting economic growth. For instance, Poland is investing USD 2.8 billion from the EU Recovery Fund to modernize key railway corridors, focusing on track upgrades, electrification, and signaling to boost freight capacity, speed, and reliability.

Growth in Cross-Border and Intercontinental Trade

Rising volumes of intercontinental and cross-border trade are bolstering demand for efficient and cost-effective freight transport modes. Rail freight presents a viable solution for long-distance cargo movement, offering a balance between speed and cost when compared to maritime and road freight. As global supply chains become increasingly interconnected, rail corridors linking industrial zones, ports, and inland terminals are emerging as key logistics arteries. The development of high-capacity rail routes that connect major trade hubs has enabled more predictable, secure, and time-sensitive delivery of goods across regions. Expansion in the volume of containerized freight, which benefits significantly from rail's capacity and reliability, is further reinforcing the importance of this mode. The integration of digital tracking systems, harmonized customs procedures, and unified cargo documentation are making cross-border rail more seamless. For instance, in 2024, the Trans-Caspian International Transport Route (TITR), or Middle Corridor, recorded a 63% surge in freight volumes, reaching 4.1 million tons, driven by shippers rerouting away from Russian territory due to geopolitical tensions. Azerbaijan Railways reported over 27,000 TEUs from China via TITR, a 25-fold increase from 2023. This shift reflects growing reliance on the Middle Corridor, which links China to Europe through Central Asia, the Caspian Sea, the South Caucasus, and Türkiye. A GEODIS shipment from Sweden to Beijing via this route demonstrated its operational viability, bypassing Russia entirely and reinforcing the corridor's strategic role in reshaping Eurasian trade.

Advancement in Digital Rail Freight Systems

The adoption of digital technologies across the rail freight value chain is accelerating, improving both operational efficiency and cargo visibility. Intelligent transportation systems, IoT-based asset tracking, and predictive analytics are allowing operators to optimize schedules, reduce dwell times, and prevent unplanned maintenance-related delays. These systems enhance transparency for customers by enabling real-time tracking of shipments, improving confidence and service reliability. AI-powered software platforms are also assisting in dynamic routing, load optimization, and forecasting, ensuring better capacity utilization and responsiveness to demand fluctuations. Integration of blockchain for documentation and transaction security is simplifying cross-border operations by reducing paperwork and streamlining customs processes. Automated systems for yard management, electronic waybills, and digital freight matching are driving labor and time efficiency, reducing the overall cost per shipment.

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Key Market Challenges

Infrastructure Modernization and Capacity Constraints

A significant challenge in rail freight transportation is the limited capacity and aging infrastructure that hampers service expansion and operational efficiency. Many rail networks continue to rely on outdated tracks, signaling systems, and rolling stock, which leads to frequent delays, speed limitations, and higher maintenance costs. As cargo volumes grow and demand shifts toward time-sensitive deliveries, existing infrastructure often struggles to accommodate heavier and faster trains. This bottleneck limits the frequency and flexibility of freight movement, reducing the attractiveness of rail compared to other modes. Investment in double-tracking, electrification, bridge strengthening, and terminal automation is necessary to enhance capacity, but such upgrades are capital-intensive and time-consuming. Network congestion in key freight corridors further disrupts schedules, creating inefficiencies for shippers and logistics providers. Balancing freight and passenger traffic on shared lines adds complexity, especially during peak hours or in densely trafficked zones. .

Interoperability and Regulatory Complexity

Rail freight transportation often spans multiple jurisdictions, and regulatory discrepancies create operational inefficiencies and delays. Differing technical standards, signaling protocols, axle load limits, and track gauges across borders complicate the seamless movement of trains. Inconsistencies in customs procedures and cargo documentation increase dwell times at interchanges, impacting the competitiveness of rail versus road or air transport. The lack of unified regulations requires time-consuming manual processes and adaptations, slowing the pace of cross-border freight services. This complexity deters potential logistics providers from scaling their rail offerings, especially for time-sensitive or high-value shipments. Efforts to harmonize systems and adopt digital customs clearance solutions have been initiated, but progress remains uneven.

Key Market Trends

Integration of Rail into Intermodal Logistics

Rail freight is increasingly becoming a central component of intermodal transportation strategies, offering a cost-effective and sustainable middle segment for long-distance cargo movement. Shippers and logistics providers are adopting rail as part of a multimodal approach where goods are moved seamlessly between ships, trucks, and trains. This integration enhances delivery speed and efficiency while reducing reliance on long-haul trucking, which often faces challenges like driver shortages, fuel costs, and congestion. Intermodal terminals equipped with modern cargo handling equipment and digital coordination tools are streamlining the transfer process between modes. The flexibility of combining rail with road or maritime transport enables better routing, higher capacity utilization, and more responsive supply chain management. This trend is also supported by smart tracking technologies that provide end-to-end cargo visibility, ensuring better planning and risk mitigation. The intermodal model is especially attractive for containerized goods, perishable items, and time-sensitive industrial cargo. For instance, in response to Red Sea disruptions and rising sea freight costs, China-Europe rail routes particularly the China–Central Asia–West Asia corridor have gained momentum in 2024, offering faster transit times, lower emissions, and greater cost-efficiency. Rail freight rates were reported to be 59% lower than sea routes, with transit times as short as 10 days compared to 30–40 days by sea. The number of China-Europe rail trips rose 13% year-on-year to 14,689 in the first nine months of 2024, moving 1.57 million TEUs. The corridor’s development is supported by growing logistics hubs in China, Kazakhstan, and Europe, with expanded services to 226 cities in 25 European countries. This mode offers benefits including reduced warehousing costs, improved delivery speed, higher turnover for perishable or time-sensitive goods, and significantly lower environmental impact, making rail freight a strategic and sustainable alternative in global logistics planning.

Shift Toward Electrification and Green Energy Usage

Rail freight operators are increasingly transitioning toward electrified systems to reduce emissions, cut operating costs, and meet stricter environmental regulations. Electrification of rail lines offers several advantages, including higher energy efficiency, lower noise pollution, and reduced maintenance needs compared to diesel-powered alternatives. The adoption of green energy sources, such as solar or wind power, to power electric trains is further strengthening the environmental case for rail transport. Government policies supporting clean energy infrastructure are accelerating the deployment of electric locomotives and hybrid engines, particularly on high-traffic corridors. This transition aligns with broader sustainability goals and strengthens the appeal of rail among eco-conscious shippers and large corporations. Advances in battery technology and energy storage systems are also making it feasible to electrify lines that are currently uneconomical for full grid connection.

Development of Smart Rail Freight Corridors

Rail freight corridors are evolving into smart logistics highways equipped with digital systems that monitor, manage, and optimize cargo movement in real time. These smart corridors leverage sensors, AI algorithms, cloud-based platforms, and communication networks to enhance safety, efficiency, and predictability across the supply chain. They provide continuous visibility into cargo status, equipment condition, and traffic flow, allowing operators to preempt disruptions and manage delays more effectively. Advanced analytics enable capacity forecasting, demand planning, and infrastructure optimization, reducing the risk of congestion or underutilization. Smart rail corridors are also improving collaboration between stakeholders by offering shared platforms for data exchange, customs coordination, and resource scheduling. Automation in terminal operations and predictive maintenance systems reduce labor dependency and unplanned downtime, contributing to lower costs and improved service quality.

Segmental Insights

Freight Category Insights

In 2024, the intermodal freight segment emerged as the dominant category within the Europe & CIS rail freight transportation market. This segment gained traction due to its ability to integrate multiple modes of transport rail, road, and sea into a seamless and efficient logistics chain. Intermodal freight offers significant advantages in terms of flexibility, cargo handling speed, and reduced dependency on long-haul trucking. The rise of e-commerce, growth in containerized cargo, and increasing demand for timely deliveries pushed logistics providers to favor intermodal solutions for both domestic and cross-border shipments. Strategic development of intermodal terminals equipped with cranes, storage areas, and digital coordination systems enhanced cargo flow and reduced transfer times. Infrastructure improvements in rail corridors linking major ports to inland distribution centers supported the growth of this segment.

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Country Insights

In 2024, Russia led the Europe & CIS rail freight transportation market due to its vast railway network and dependence on rail for moving bulk cargo like coal, metals, and oil. Its expansive geography and industrial activity required long-haul freight, supported by modernized corridors linking production centers to ports and borders. Upgrades in electrification and digital systems improved efficiency, solidifying Russia’s role as a key Asia-Europe transit route.

Germany maintained strong market relevance with its advanced rail infrastructure and efficient intermodal networks. Rail freight supported container and industrial cargo flows, especially for just-in-time operations. Its central location enabled seamless cross-border trade, making it a logistics hub for integrated rail movement.

Poland rose as a strategic player by serving as a key transit link between Western Europe and Central Asia. Infrastructure modernization and high transit volumes helped position it as a major rail distribution and logistics node in the regional freight ecosystem.

Recent Developments

• ​In June 2025, China and Kazakhstan signed a memorandum to boost rail freight via the Central Asia corridor, focusing on infrastructure upgrades, digital logistics, and customs simplification. The route saw 15.4 million tonnes of Chinese cargo transit Kazakhstan in 2024, up 22%, reinforcing its role as a secure and strategic China-Europe trade link.
• In June 2025, Helrom secured €32.9 million in green financing to expand its terminal-free Trailer Rail service across Europe, adding 120 wagons to boost low-emission, road-to-rail freight transport.
• In April 2025, Rail Baltica Estonia launched a tender to build a multimodal terminal at Muuga Harbour, aiming to boost freight capacity up to 10 million tonnes and strengthen Baltic logistics connectivity.
• In November 2024, Nurminen Logistics acquired Sweden’s Essinge Rail AB for 150 MSEK to expand its Nordic–European rail freight network, enhancing low-emission services and cross-border LCL logistics capabilities.

Key Market Players

• DB Cargo
• SNCF Group
• Rail Cargo Group
• PKP Cargo
• TX Logistik AG
• SBB Cargo International
• Green Cargo
• ČD Cargo
• Freightliner Group Ltd
• ZSSK CARGO

Report Scope:

In this report, the Europe & CIS Rail Freight Transportation Market has been segmented into the following categories, in addition to the industry trends which have also been detailed below:

•           Europe & CIS Rail Freight Transportation Market, By Freight Category:

o    Unit Trains

o    Carload Freight

o    Intermodal Freight

•           Europe & CIS Rail Freight Transportation Market, By Transport Area:

o    International Transport

o    National Transport

•           Europe & CIS Rail Freight Transportation Market, By Country:

o    Germany

o    Russia

o    France

o    Spain

o    Italy

o    United Kingdom

o    Poland

o    Rest of Europe & CIS

Competitive Landscape

Company Profiles: Detailed analysis of the major companies presents in the Europe & CIS Rail Freight Transportation Market.

Available Customizations:

Europe & CIS Rail Freight Transportation Market report with the given market data, TechSci Research offers customizations according to the company’s specific needs. The following customization options are available for the report:

Company Information

• Detailed analysis and profiling of additional market players (up to five).

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