In this article, we will take a look at the 20 countries with the highest railway passenger traffic in the world. If you would like to skip our discussion on the rail transportation market, you can go to the 5 Countries With The Highest Railway Passenger Traffic in The World.
According to Research and Markets, the Global Rail Transportation market was valued at approximately $479 billion in 2023. The market is expected to expand at a compound annual growth rate (CAGR) of 4.7% to reach $692.2 billion by 2030. Within this market, the passenger segment is projected to experience significant growth, with a CAGR of 5.3%. By the end of the analysis period, the passenger segment could reach a value of about $377.6 billion.
The United States ranks first among the countries with the largest railway network in the world. The US railway transportation market was valued at $110.1 billion in 2023. Meanwhile, China, the world’s second-largest economy, is forecasted to achieve considerable growth, reaching $124.1 billion by 2030, with a CAGR of 6.3%. Japan and Canada are expected to grow at rates of approximately 3.6% and 4.5%, respectively, from 2023 to 2030. Japan is also known as one of the countries with the best railway systems in the world.
This growth projection can be due to the global shift towards environmentally friendly solutions. While rail accounts for 8% of passengers and 7% of freight transport globally, it represents a mere 2% of transport energy demand, according to the International Energy Agency. Moreover, freight railroads contribute just 0.5% of total US greenhouse gas emissions and 1.7% of transportation-related GHG emissions, whereas cars and trucks contribute significantly higher percentages. According to the Association of American Railroads, shifting freight transportation from trucks to rail has the potential to reduce GHG emissions by up to 75%, on average.
Companies Driving the Railway Transportation Market
Within the railway transportation market, key industry players that significantly influence growth include Alstom SA (EPA:ALO), Union Pacific Corporation (NYSE:UNP), and Siemens AG (ETR:SIE).
Alstom SA (EPA:ALO), a French rail transport company, is known for its range of transportation systems, including tramways, metro systems, trains for suburban and regional routes, high-speed trains, and locomotives. On March 27, 2024, Alstom SA (EPA:ALO) announced plans to cut its trains’ energy consumption by 25% by 2025. The company has already achieved a reduction of 23.4%.
Union Pacific Corporation is a major railroad company based in the USA, connecting 23 states in the western part of the country by rail. It operates one of the largest rail networks in the USA, spanning 50,000 kilometers. On February 21, 2024, Union Pacific Corporation announced plans to invest $3.4 billion in 2024 to ensure safe operations, renew assets, and expand services in line with customer needs.
Siemens AG (ETR:SIE), headquartered in Germany, is a technology company that provides infrastructure development, turnkey systems, automation, and trains and electrification solutions. On March 21, 2024, Siemens AG (ETR:SIE) announced an agreement to acquire the industrial drive technology (IDT) business from ebm-papst.
You can also check out the 11 Best Railroad Stocks To Buy Now here.
Our Methodology
We have compiled a list of the top 20 countries with the highest railway passenger traffic in the world, referencing the most recent data from the World Bank. The selection criterion was based on the Railways, Passengers carried (million passenger-km), representing the total number of passengers transported by rail multiplied by the distance covered in kilometers. Each country’s latest available value was used, and they have been arranged in ascending order of million-passenger km values.
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20 Countries With The Highest Railway Passenger Traffic in The World
20. Ukraine
Railways, Passengers Carried (million passenger-km) (2020): 10,696
The Ukrainian government owns the majority of the country’s railway infrastructure. With a population of 38 million, rail transport is favored, particularly due to the high cost of fuel for road travel and the expensive nature of air tickets in Ukraine. These factors collectively contribute to the high volume of rail traffic in the country.
19. Netherlands
Railways, Passengers Carried (million passenger-km): 10,900
With a population of 17.7 million, the Netherlands relies heavily on an efficient transportation system. The country’s railway network is primarily owned and operated by the state-owned company Nederlandse Spoorwegen.
18. Iran
Railways, Passengers Carried (million passenger-km): 11,231
Many Iranians opt for railways as a primary mode of transportation, ranking Iran as the 18th country worldwide for the highest railway passenger traffic. The Islamic Republic of Iran Railways (IRIR) serves as the national state-owned railway system. The Raja Passenger Train Company, a subsidiary of IRIR, oversees the management of passenger trains.
17. United States
Railways, Passengers Carried (million passenger-km): 12,460
With the population in the United States reaching over 341 million and growing at an annual rate of 0.9%, there is a significant demand for passenger rail services. The rail infrastructure in the country is divided between privately owned freight railways and state-owned passenger services, collectively covering over 140,000 miles of track. This extensive network positions the United States as one of the countries with the largest rail networks in the world.
16. Switzerland
Railways, Passengers Carried (million passenger-km): 14,308
Switzerland’s national railway company is SBB. Despite Switzerland’s small size, its rail system is vast, spanning over 3,241 miles of railway tracks. This makes it one of the most densely covered rail networks in Europe, with approximately 196 miles of track per 1,000 square miles. This is more than 2.5 times the European average. From Zurich, the primary mode of transportation to reach any destination within Switzerland is by train.
15. Poland
Railways, Passengers Carried (million passenger-km): 15,844
With a population of 36 million, Poland requires a strong transportation system. The Polish State Railway owns 90% of the railway stations in operation. The high-speed trains of Poland can reach speeds of up to 250 km/h, allowing passengers to cover hundreds of kilometers in just a few hours.
14. Brazil
Railways, Passengers Carried (million passenger-km): 16,486
While buses serve as the primary mode of transport in Brazil, a significant number of people also use rail services. Brazil has one of the largest railway networks globally, contributing to the country’s transportation infrastructure.
13. Spain
Railways, Passengers Carried (million passenger-km): 17,002
Renfe serves as the national train operator, operating the high-speed AVEs along with other mainline, local, and suburban trains across Spain. The Spanish rail network is huge, allowing passengers to reach the smallest towns by train. Most destinations offer multiple daily train services, with popular routes having trains departing every hour. Spain ranks among the top 15 countries with the highest railway passenger traffic in the world.
12. United Kingdom
Railways, Passengers Carried (million passenger-km): 24,188
In the UK, Network Rail operates the railway infrastructure, which includes 20,000 miles of track, 30,000 bridges, tunnels, signals, level crossings, and stations. Due to the efficient rail system, many people prefer trains over other modes of transport in the country.
11. Pakistan
Railways, Passengers Carried (million passenger-km): 24,903
The Pakistan Railways (PR) network spans a route of 7,791 kilometers, covering 633 stations. Within the network, there are 1,043 kilometers of double-track sections and 285 kilometers of electrified sections. Despite facing maintenance issues, Pakistan’s passenger railways are a preferable mode of transport due to the increasing costs of air travel.
10. Italy
Railways, Passengers Carried (million passenger-km): 27,693
Trenitalia is Italy’s state-run rail network and operates high-speed trains. These trains are efficient and have affordable ticket prices. Italy has one of the most advanced high-speed train systems globally. Furthermore, Italy also used Spherical bearing technology for its high-speed rail bridges.
9. Indonesia
Railways, Passengers Carried (million passenger-km): 29,066
Indonesia’s railways are owned by the state-owned Kereta Api Indonesia (KAI). Train travel in Indonesia is affordable, comfortable, and air-conditioned, making it a popular mode of transport. Train travel in the country is efficient due to the computerized reservation systems. Moreover, Indonesia has recently introduced high-speed trains for more advancement of rail transport.
8. Egypt
Railways, Passengers Carried (million passenger-km): 40,837
The Egyptian National Railways serve as Egypt’s national railway system. It has one of the highest traffic densities globally, with 60% of its 10,000-kilometer network in the delta region and along the Nile. This network reaches most of the Egyptian population, including small cities and towns, making rail travel accessible to most of the population. Egypt is at the eighth position on our list of the countries with the highest railway passenger traffic in the world.
7. Germany
Railways, Passengers Carried (million passenger-km): 58,822
Deutsche Bahn runs the super-fast InterCity Express (ICE) trains, which travel across the country at regular times, linking all major cities. Trains are the preferred mode of travel in Germany, primarily due to the comparable travel times between downtown areas of most German cities by train and flying, especially when factoring in airport transit time.
6. France
Railways, Passengers Carried (million passenger-km): 86,853
SNCF is the primary train operator in France. Cross-border train services from France to Switzerland are managed by TGV Lyria, while those to Germany are operated by Deutsche Bahn. Connections to Spain are facilitated by Renfe-SNCF. Trains enjoy widespread popularity in France for several reasons. Firstly, the rail network is extensive, reaching every major city as well as most minor cities. Moreover, the high-speed network offers rapid travel, with trains reaching speeds exceeding 300 kilometers per hour.
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Disclosure: None. 20 Countries With The Highest Railway Passenger Traffic in The World is originally published on Insider Monkey.