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Is rail the answer to sustainable logistics?

Rail freight is emerging as a cornerstone of sustainable logistics.

From emissions reductions to energy efficiency, rail offers a scalable and eco-conscious alternative to traditional road and air freight.

As businesses look at ways to reduce their carbon emissions, rail transport offers the combination of reliability, cost-efficiency and environmental performance.

The UK Government’s ambition is to grow rail freight by at least 75% by 2050 to shift more goods from road to rail.

Rail freight aligns with national and international net-zero strategies. Governments across the world are investing in rail infrastructure as part of long-term climate targets, meaning shippers using rail now are future-proofing their logistics models.

Beyond lower emissions, rail freight also contributes to reduced road congestion, noise pollution, and fuel consumption. With advancements in electrification and increased investment in sustainable infrastructure, the environmental benefits of rail continue to grow.

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We look at how other countries are developing rail networks as a response to sustainable freight solutions.

United Kingdom
The Scottish government has pledged £240 million to improve railway infrastructure north of Edinburgh and the Borders region. This includes freight-friendly upgrades on key lines to boost connectivity and capacity across Scotland’s network.

Czech Republic
Škoda Group has confirmed the sale of its first battery-electric hybrid trains, supporting the country’s move toward sustainable rail transport. These advancements could influence freight operations by improving overall efficiency on shared passenger and freight corridors.

Germany
Siemens and Smart Train Lease are teaming up with TransRegio to provide hybrid trains designed for reduced emissions. The technology developments mirror similar innovations being tested for freight locomotives, especially in first-mile and last-mile operations.

Italy
Italian Rail Network (RFI) has commissioned a €1.6 billion civil works project on the Paola–Cosenza section of the high-speed corridor between Salerno and Reggio Calabria. The investment will also improve freight route efficiency in southern Italy, enhancing connections to ports and logistics hubs.

Latvia
The Latvian cabinet has approved €26 million in state funding to Latvian Railways (LDz) to offset 2024 losses and stabilise freight operations. This aims to help the operator maintain competitiveness amid declining transit volumes from Russia.

Morocco
ONCF has secured €202 million from Germany’s KfW Bank for the Casablanca railway development plan. The upgrade includes freight corridor improvements to facilitate exports and industrial logistics, especially through the Casablanca region.

Poland
PKP Intercity’s order for high-speed trains will indirectly benefit freight operations by freeing up mainline capacity for goods transport. The €2.8 billion investment is part of a wider modernisation of Poland’s rail infrastructure.

Portugal
Comboios de Portugal (CP) achieved record passenger volumes in 2024, helping to justify continued investment in network electrification and dual-use corridors that benefit both passenger and freight traffic.

Serbia
The Serbian government has obtained €100 million in EIB funding to upgrade the Niš–Dimitrovgrad line toward Bulgaria. The 86 km route is vital for pan-European freight transit, connecting the Balkans with the broader EU rail network.

United States
New Jersey Transit (NJT) has ordered 200 double-deck coaches and 12 bi-mode locomotives worth over US$1 billion from Alstom. While passenger-focused, the deal reflects growing U.S. confidence in rail investment—setting the stage for potential freight network improvements through shared infrastructure and technology.

Contact us to discuss how our TPS Global Logistics rail freight services can help your business reduce carbon emissions and meet ESG targets

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