Rail freight redefining Asia logistics
26 May 20259 min read
Summary
- Rail freight offers a balanced logistics solution—4–5 times cheaper than air, faster than sea, and ideal for bulk cargo, with routes like the China-Europe Express completing deliveries in 12–20 days.
- Major infrastructure projects, including the China-Europe Express, ASEAN Express, and national rail expansions in Thailand, Indonesia, and Vietnam, are driving regional connectivity and trade efficiency.
- With emissions of just 18g per ton-km, rail freight is a greener alternative to air and road transport, though high capital costs, regulatory gaps, and geopolitical risks still challenge widespread adoption.
Rail freight is reshaping Asia's logistics landscape, offering a transformative alternative to the well-established air and sea freight industries. While air logistics dominate for speed and safety, and sea freight excels in capacity for heavier, bulkier goods, rail is emerging as a key player bridging the gap. With its ability to combine speed, cost-efficiency, and eco-friendliness, rail freight is redefining how goods move across the continent. Could this be the future of logistics in Asia's dynamic markets?
The dominance of Air and Sea Freight
According to the Director General of the International Air Cargo Association (TIACA), Glyn Hughes, there’s a shift of increase to 5% demand from 2023 to 2024. Global economic indicators appear increasingly favorable for air cargo. The Purchasing Managers’ Index (PMI) for new export orders in global manufacturing increased for the third consecutive month in April. Industrial production remains in growth territory despite modest easing.
This need for diversification and resilience has also driven the rise of rail freight as a promising alternative. Combining speed, cost-efficiency, and eco-friendliness, rail logistics offers a solution to manage risks and adapt to evolving supply chain challenges.
Enter the third option: Rail Freight
Across Asia, investments in rail infrastructure are driving the growth of rail freight. Key initiatives include:
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