Introduction

How rail is changing

Around the world, rail offers an efficient and sustainable form of transport for people and goods. As reported by Our World in Data [1], rail travel and freight emit very little — only 1% of transport emissions. Other transport — mainly the movement of materials such as water, oil, and gas via pipelines — is responsible for 2.2%. Rail connects towns and cities and has the potential to generate growth and renewal, connecting people to jobs and family, and goods to businesses. According to Eurostat [2], in 2023, EU rail passenger transport hit its highest level in years, reaching 429 billion passenger-kilometres.

But it faces challenges. Aging infrastructure is often inefficient and costly to replace. Some lines struggle to meet capacity, others don’t attract enough passengers to fund their operations. Operators - both private and national - in various countries struggle with profitability and cost control in a tough economic climate. They face unpredictable OPEX expenses related to aging stock and infrastructure, plus legal and practical limitations on how much they can charge. In some cases, they face growing passenger numbers, and increased freight volumes - plus higher expectations around connectivity and convenience that only add to the challenge.

And then there is increasing competition, whether from opening up the market in rail, or from other modes of transportation, like flights or roads – driving and even flying are often considered cheaper and/or easier for human transport, despite their higher cost to society and the environment, just as freight trucking is often chosen for freight rather than rail.

Rail is therefore ripe for reinvention. It must run more efficiently at a lower cost. It must make better use of existing infrastructure, including emerging smart IoT and digitalized systems. It must be more interoperable and standardized. It must improve the customer experience and become easier to use. And, as it evolves, it must become even more sustainable and efficient through better designs, and more optimal traffic management and maintenance. In this, it has a real opportunity, as ecological concerns grow in relation to our Net Zero 50 targets.

How can it do all this? Success depends on all actors in the railway industry mastering innovative technologies, delivering complex digital transformation programs, and building partnerships across digital and technological ecosystems.

In this point of view, we will address these challenges with various approaches which – if tackled correctly and collectively – will transform rail to be fit for the future.