In this article, we will look at the top 15 railroad companies in the world. If you don’t want to get into details, then you can feel free to skip to the Top 5 Railroad Companies in the World.
Railroad companies play a vital role in the global supply chain, transporting goods and materials across long distances efficiently and quickly. With the increasing demand for transportation services, the railroad industry has become one of the most important sectors in the world.
According to a report by IEA, today, most of the world’s traditional rail networks are found in North America, Europe, China, Russia, India, and Japan. Around 90% of all passenger movements on conventional rail occur in these regions, with India leading the pack with 39%, followed by China with 27%, Japan with 11%, and the European Union with 9%.
The Revival Of the Railroad Industry
The current situation of railroad supply chains is influenced by various factors such as the COVID-19 pandemic, increasing demand for transportation services, and pressure to reduce carbon emissions. Despite these challenges, railroad companies continue to play a critical role in the global supply chain, facilitating the movement of goods and materials between countries and regions.
During the COVID-19 pandemic, the demand for rail transport increased, as companies sought alternative ways to move goods across borders amid restrictions on air and sea transport. According to Allied Market Research, the market for railway systems worldwide, which was valued at $27.2 billion in 2021, is anticipated to increase at a CAGR of 4.6% from 2022 to 2031 to reach $42.4 billion.
These companies have implemented various measures to mitigate the impact of the pandemic on their operations, such as implementing safety protocols. Importantly, they have also taken steps to reduce their carbon footprint by adopting more sustainable practices and investing in eco-friendly technologies, alternative fuels, and investing in more efficient locomotives and railcars.
As the world continues to face various economic, environmental, and social challenges, the role of railroad companies in the global supply chain will only become more important. Even though it transports 7% of the world’s freight and 8% of its passengers, rail represents only 2% of the overall energy demand for transportation.
Rail transport can also be integrated with other modes of transport such as trucks, ships, and planes, to create a multi-modal transportation system that provides end-to-end supply chain solutions. This integration can help optimize the supply chain by combining the strengths of each mode of transport to achieve greater efficiency, speed, and cost-effectiveness.
Pixabay/Public Domain
Our Methodology
We have listed the top 15 railroad companies in the world in ascending order according to their trailing twelve-month revenue for their latest fiscal years, for which the data is publicly available.
To acquire deeper knowledge about these companies, we gathered the information using a data-driven approach, incorporating relevant statistics to support the analysis. The research involved analyzing the strategies and measures taken by the railroad companies to adapt to the changing landscape of the global supply chain, and the challenges brought about by the pandemic.
It is also important to note that, for the nonpublic companies in our list, we have estimated their revenue in 2021 based on sources like Statista, and GlobalData, among others.
Here is our list of the top 15 railroad companies in the world:
15. Meitetsu
2022 Revenue: $4.04 billion
Meitetsu, short for Nagoya Railroad Co., Ltd., is a major transportation company in Japan that serves the central region of the country, including the Nagoya metropolitan area. Founded in 1894, Meitetsu operates a wide range of transportation services, including commuter trains, express trains, limited express trains, and buses. The company is also involved in real estate development, retail operations, and other businesses.
14. Tobu Railway
2022 Revenue: $4.40 billion
Tobu Railway is a major railway company in Japan, serving the Tokyo metropolitan area and several prefectures in the Kanto region. Founded in 1897, the company operates a vast network of railways and bus routes, with a focus on commuter services and tourism. In addition to its transportation services, Tobu Railway also operates hotels, department stores, and other businesses, making it a significant contributor to the economy of the region, earning a revenue of $4.40 billion in 2022.
13. Canadian Pacific Railway Corporation
2022 Revenue: $6.69 billion
Canadian Pacific Railway, also known as CP Rail, is a major freight transportation company in Canada and the United States. The company operates a network of railway tracks spanning over 12,500 miles across Canada and the northeastern United States, with major hubs in Vancouver, Calgary, and Toronto.
Canadian Pacific Railway provides transportation services for a wide range of commodities, including grain, coal, potash, and forest products, and is known for its innovation and efficiency, with a focus on implementing new technologies and operational practices to improve performance and reduce costs.
The company’s strong financial performance and strategic investments position it for continued success in the years to come. The financial reports from Canadian Pacific Railway show that the company’s 2022 revenue was $6.69 billion. The company generated $6.33 billion in revenue in 2021, an increase from $5.72 billion in revenue in 2020.
12. Tokyu
2022 Revenue: $6.37 billion
Tokyu Railway is a private railway company that operates in the Tokyo Metropolitan area of Japan. Founded in 1922, the company’s network covers a significant part of Tokyo, connecting the city’s suburbs with central Tokyo. The company operates on several lines, including the Toyoko Line, Meguro Line, and Den-en-toshi Line, serving millions of passengers each day and has also expanded its business to include real estate development, retail, and hospitality services. With a focus on innovation and customer satisfaction, Tokyu Railway has become a vital part of Tokyo’s transportation infrastructure, contributing to the city’s economic growth and development.
11. Hankyu Hanshin Holdings
2022 Revenue: $7.10 billion
Hankyu Hanshin Holdings is a Japanese conglomerate, that operates primarily in the transportation and real estate sectors. It operates a vast network of railway lines, including the Hankyu Railway and Hanshin Electric Railway, serving millions of passengers in the Osaka-Kobe-Kyoto metropolitan area.
In addition to its transportation business, the company is also involved in real estate development, commercial property management, and retail. The financial reports for Hankyu Hanshin Holdings show that the company’s 2022 revenue was $7.10 Billion. The company generated $6.17 billion in revenue in 2021, an increase from $5.40 billion in revenue in 2020.
10. Central Japan Railway
2022 Revenue: $9.49 billion
Central Japan Railway, commonly referred to as JR Central, is a major transportation company in Japan, operating high-speed trains, conventional railways, and bus and hotel businesses. The company’s flagship service is the Tokaido Shinkansen, a high-speed rail line that connects Tokyo and Osaka, with stops at major cities along the way. JR Central is known for its cutting-edge technology and innovation, with a focus on improving the passenger experience through the development of new train models and amenities.
9. West Japan Railway
2022 Revenue: $9.59 billion
West Japan Railway Company (JR West) is one of the largest passenger railway companies in Japan, operating a vast network of railway lines in the western region of the country. The company was established in 1987 when the Japanese National Railways was privatized and divided into several regional companies. Since then, JR West has been providing safe, reliable, and comfortable transportation services to millions of passengers every day.
The company’s flagship service is the Tokaido Shinkansen, which connects Osaka with Tokyo. The company also operates the Sanyo Shinkansen, which connects Osaka with Fukuoka, as well as various local and express trains. The financial reports from West Japan Railway indicate that the company’s 2022 revenue was $9.59 Billion. The company’s revenue in 2021 was $8.76 billion, down from $9.43 billion in revenue in 2020.
8. Kintetsu GHD
2022 Revenue: $9.66 billion
Kintetsu Group Holdings, Inc. (Kintetsu GHD) is a Japanese conglomerate that operates in the transportation, real estate, and retail sectors. The company is also involved in real estate development, property management, and retail, with a portfolio of shopping malls and department stores.
7. Norfolk Southern Corporation (NYSE:NSC)
2022 Revenue: $12.74 billion
Norfolk Southern Corporation (NYSE:NSC) is a major freight transportation company in the United States, operating an extensive network of railway tracks spanning over 19,500 miles across 22 states in the eastern United States. The company provides transportation services for a diverse range of commodities, including automotive, chemicals, coal, and intermodal freight. Norfolk Southern Corporation (NYSE:NSC) is known for its commitment to safety, with a strong focus on employee training and education to prevent accidents and promote safe work practices.
Norfolk Southern Corporation (NYSE:NSC) faces various challenges, including regulatory compliance, infrastructure maintenance and expansion, and changing market conditions. However, the company’s strategic investments in technology and infrastructure position it for continued growth and success in the years to come. The financial reports from Norfolk Southern indicate that the company’s 2022 revenue was $12.74 Billion. The company generated $11.14 billion in revenue in 2021, a rise from $9.78 billion in revenue in 2020.
6. Canadian National Railway Company (NYSE:CNI)
2022 Revenue: $13.00 billion
Canadian National Railway Company (NYSE:CNI) was established in 1919 and runs various lines in the US as well as across Canada. As a whole, they run lines through every province of Canada and down through the US to the Gulf of Mexico. It is Canada’s largest railway in terms of both track length and revenue. They run rail, intermodal, and trucking transportation on their more than 20,000-mile-long network of tracks.
Canadian National Railway Company (NYSE:CNI) is known for its focus on innovation and sustainability. The company has invested heavily in advanced technology to improve the efficiency and safety of its operations. For instance, CN has implemented an automated track inspection system that uses lasers, ultrasound, and other sensors to detect potential defects in the tracks, reducing the risk of derailments, and improving the reliability of its services. The most recent financial reports from Canadian National Railway (NYSE:CNI) show that the company’s 2022 revenue was $13 billion. The corporation generated $11.46 billion in revenue in 2021, a rise from $10.26 billion in revenue in 2020.
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Disclosure: None. Top 15 Railroad Companies in the World is originally published on Insider Monkey.