Heavy-duty railfreight: Full steam ahead, despite bottlenecks

Robust demand has created a steady flow of heavy and project cargoes on North America’s railways, with power transmission infrastructure continuing to make up the bulk of loads moved. Although costs and clearance times continue to rise, demand looks set to continue upwards. 

The North American Class I rail carriers rolled through a challenging environment last year, with coal volume (the top commodity) down and anaemic industrial demand, as the US manufacturing PMI contracted. On the bright side, the railways recorded growth in intermodal traffic and managed to improve performance, avoiding a repeat of 2023’s hearings at the Surface Transportation Board on poor service levels.

“Rail transport provided significant cost efficiency and capacity for moving oversized cargo across long distances, especially in North America,” said Mohamed Eltantawy, head of rail at deugro. “Rail carriers have made significant progress in adapting to the increasing demand for heavy and outsize cargo. New equipment, such as specialised railcars and enhanced technology for tracking and scheduling, has helped address capacity constraints,” he explained.