Japan Rail Freight Transport Market Size
| Study Period | 2020 - 2029 |
| Base Year For Estimation | 2023 |
| Forecast Data Period | 2024 - 2029 |
| Historical Data Period | 2020 - 2022 |
| CAGR | 3.60 % |
| Market Concentration | Medium |
Major Players
*Disclaimer: Major Players sorted in no particular order |
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Japan Rail Freight Transport Market Analysis
The Japan Rail Freight Transport Market transported over 39 million metric tons of cargo in the current year and is anticipated to register a CAGR of over 3.6% during the forecast period.The railway system was one of many transportation infrastructures that significantly aided Japan's economic growth with its effective transportation.
- Additionally, compared to autos, trains have extraordinarily high kinetic energy efficiency and have a very minimal environmental impact. JR Freight estimates that one freight train (26 cars) is equivalent to 65 10-ton trucks, demonstrating the extraordinarily high transportation efficiency of railways, which can move massive volumes of cargo at once.
- The TOYOTA LONGPASS EXPRESS is one well-known illustration. Toyota owns this freight train, which travels 900 kilometers between Nagoya and Morioka and transports auto parts made at its facility in Aichi Prefecture to its facility in Iwate Prefecture. Transporting 40 10-ton truckloads at once, according to the firm, is now achievable thanks to the changeover from truck to rail transportation.
- Every day, 737 freight trains run across the nation on average. 425 of them are container trains, and the remaining trains transport heavy cargo in tankers and hoppers. These freight trains cover a total daily distance of around 240,000 km. JR Freight transports 90% of its train cargo at night. Even thoughthe fact that JR Freight and the six JRs use the same tracks and catenaries as well as the same rail infrastructure, they are all controlled by the JRs. Despite not paying track usage fees, JR Freight is nonetheless liable for any additional expenditures incurred as a result of running freight trains on these tracks.
- Japan's 150-year-old tradition of developing sophisticated railway technology and knowledge should now be able to propel the growth of sustainable railway systems around the world. Railways are crucial for a sustainable modal shift away from road travel because they have the potential to form the foundation of any future sustainable transport system.
Japan Rail Freight Transport Market Trends
This section covers the major market trends shaping the Japan Rail Freight Transport Market according to our research experts:
Increase in demand for sustainable transport of goods driving the market
Tokyu is setting the standard as the first Japanese train company to run 100% of its operations on renewable energy. However, other business owners are also contributing to the reduction of emissions in the sector. Tobu Railway, Japan's second-largest rail operator by distance covered, announced plans to run its special express services between Tokyo and the resort town of Nikko using renewable energy beginning in April. This was in response to Tokyu's vow. Similarly to this, Tobu stated in November 2021 that it will buy a new fleet of trains from Hitachi Rail that, when put into service in 2023, will cut CO2 emissions by up to 40%.
The largest rail business in Japan, East Japan Railway Company (JR East), has also maintained that it will increase its usage of renewable energy throughout all of its activities to comply with Japan's commitment to reduce greenhouse gas emissions to zero by the year 2050. The efforts of such businesses will be essential to achieving the net-zero goal because JR East alone consumes an estimated 5 billion KWh across its train operations, stations, and office buildings, which is comparable to 1.4 million households.
One of the biggest commercial logistics firms in Japan, Seino Holdings Co. Ltd. has been around for about 90 years. A new partnership to operate non-container "break-bulk" cargo trains between Nagoya in Aichi Prefecture and Fukuoka in Fukuoka Prefecture in March 2021 and between Tokyo's Shinagawa and Higashi Fukuyama in Hiroshima Prefecture in October 2021 was launched by Seino Transportation, Japan Freight Liner, and Japan Freight Railway in 2021. Seino Transportation trucks deliver the goods to the stations, Japan Freight Liner loads them onto freight trains, and Japan Freight Railway transports them. Together, the two routes that these freight trains travel on can reduce emissions by 13,805 tons yearly.
Increasing domestic and cross-border rail freight transportation supporting the market
A new intermodal service from Japan to Uzbekistan through China and Kazakhstan has been introduced by FESCO Transportation Group. Its name is FESCO Trans China Railway, and it connects the nations by combining rail and water. The service covers sea transportation from the port of Yokohama in Japan to the port of Lianyungang in the Chinese province of Jiangsu. The containers are then carried by rail from this point. To reach the border with Kazakhstan, this route passes via China at Khorgos. The containers are reloaded onto the 1520 gauge network at this border and then railroaded to their final destination, the Chukursai terminal in Tashkent, Uzbekistan.
The first block train operated by Maersk between the UK and Japan landed in Felixstowe on March 2021. As part of Maersk's AE19 service, the train carrying forty 40-foot containers departed from Yokohama in January and travelled via Russia along the Trans-Siberian route. The new block train was run in collaboration with railroad company Modul, which has been a longtime partner of Maersk in AE19 since 2019. Maersk now provides three weekly departures through AE19 in addition to the new train service, and mostly transports products between North-East Asia and Northern Europe. Additionally, Maersk thinks that rail shipments between Japan and Europe will keep growing in 2021 due to the multiple difficulties that maritime transit suffers as a result of Covid-19.
Japan Rail Freight Transport Industry Overview
The Japan Rail Freight Transport Market is fairly consolidated with a few local, regional and global players. Some of the major players include Japan Freight Railway Company (JR Freight), Nippon Express Co., Ltd., Kamigumi Co., Ltd., AZ-COM Maruwa Holdings Co., Ltd., Yusen Logistics Co., Ltd., and many others. The sustainable transformation of Japanese railways and transportation of goods through intermodal logistics throughout Japan and internationally is attracting other companies to enter the market. However, rail freight transportation needs attention in Japan so that better services can be provided to consumers.
Japan Rail Freight Transport Market Leaders
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Japan Freight Railway Company (JR Freight)
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Nippon Express Co., Ltd.
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Kamigumi Co., Ltd.
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AZ-COM Maruwa Holdings Co., Ltd.
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Yusen Logistics Co., Ltd.
*Disclaimer: Major Players sorted in no particular order
Japan Rail Freight Transport Market News
- September 2022: FESCO Transportation Group has launched, a brand-new intermodal service that has begun travelling from Japan to Uzbekistan through China and Kazakhstan. Its name is FESCO Trans China Railway, and it connects the nations by train and water. At the Kazakh-Chinese logistics facility in the city of Lianyungang, the initial shipment of 18 forty-foot containers that were delivered from port Yokohama is already in place. On September 30th, containers are supposed to be sent out by rail.
- February 2022: Russian Railways, FESCO, and the Japanese Ministry of Transport joined hands to build a sea-rail cold chain link that is present in the testing stage, and a new cold chain train service connecting Japan with Europe is introduced via the Trans-Siberian route. The short sea freight service offered by FESCO was used for the pilot shipments of temperature-sensitive goods, including food, beverages, and pharmaceuticals, from Fuji and Kobe in Japan to Vladivostok in the Russian Far East.
Japan Rail Freight Transport Market Report - Table of Contents
1. INTRODUCTION
- 1.1 Study Deliverables
- 1.2 Study Assumptions
- 1.3 Scope of the Study
2. RESEARCH METHODOLOGY
3. EXECUTIVE SUMMARY
4. MARKET INSIGHTS AND DYNAMICS
- 4.1 Market Overview
- 4.2 Market Drivers
- 4.3 Market Restraints
- 4.4 Insights into Supply Chain/Value Chain Analysis
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4.5 Industry Attractiveness - Porter's Five Force Analysis
- 4.5.1 Threat of New Entrants
- 4.5.2 Bargaining Power of Buyers/Consumers
- 4.5.3 Bargaining Power of Suppliers
- 4.5.4 Threat of Substitute Products
- 4.5.5 Intensity of Competitive Rivalry
- 4.6 Technological Advancements in Rail Freight Transport
- 4.7 Overview of Global Rail Freight Transport
- 4.8 Pricing Analysis and Revenue analysis of Rail Freight Transport Market
- 4.9 Insights on Dry ports
- 4.10 Government Regulations and Initiatives
- 4.11 Regional insights on Rail Freight Transport Market
- 4.12 Impact of COVID-19 on the market
5. MARKET SEGMENTATION
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5.1 By Cargo Type
- 5.1.1 Containerized (Intermodal)
- 5.1.2 Non-containerized
- 5.1.3 Liquid Bulk
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5.2 Service Type
- 5.2.1 Transportation
- 5.2.2 Services Allied to Transportation
6. COMPETITIVE LANDSCAPE
- 6.1 Market Concentration Overview
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6.2 Company Profiles
- 6.2.1 Japan Freight Railway Company (JR Freight)
- 6.2.2 Nippon Express Co., Ltd.
- 6.2.3 Kamigumi Co., Ltd.
- 6.2.4 AZ-COM Maruwa Holdings Co., Ltd.
- 6.2.5 Yusen Logistics Co., Ltd.
- 6.2.6 FESCO
- 6.2.7 MAERSK
- 6.2.8 Seino Transportation Co. Ltd.
- 6.2.9 Japan Freight Liner Co.
- 6.2.10 Japan Freight Railway Co.*
- *List Not Exhaustive
7. MARKET OPPORTUNITIES AND FUTURE TRENDS
8. APPENDIX
** Subject To AvailablityJapan Rail Freight Transport Industry Segmentation
Rail freight transport is the usage of railroads and trains to transport cargo on land. It can be used for transporting various kinds of goods or some of the way between the shipper and the intended destination.
The Japan Rail Freight Transport Market is Segmented by Cargo Type (Containerized (Intermodal), Non-containerized, and Liquid Bulk), Service Type (Transportation and Services Allied to Transportation). The report offers the market size and forecasts in volume (thousand metric tons) and value (USD billion) for all the above segments and the impact of Covid-19 on the market.
| By Cargo Type | Containerized (Intermodal) |
| Non-containerized | |
| Liquid Bulk | |
| Service Type | Transportation |
| Services Allied to Transportation |
Japan Rail Freight Transport Market Research FAQs
What is the current Japan Rail Freight Transport Market size?
The Japan Rail Freight Transport Market is projected to register a CAGR of greater than 3.60% during the forecast period (2024-2029)
Who are the key players in Japan Rail Freight Transport Market?
Japan Freight Railway Company (JR Freight), Nippon Express Co., Ltd., Kamigumi Co., Ltd., AZ-COM Maruwa Holdings Co., Ltd. and Yusen Logistics Co., Ltd. are the major companies operating in the Japan Rail Freight Transport Market.
What years does this Japan Rail Freight Transport Market cover?
The report covers the Japan Rail Freight Transport Market historical market size for years: 2020, 2021, 2022 and 2023. The report also forecasts the Japan Rail Freight Transport Market size for years: 2024, 2025, 2026, 2027, 2028 and 2029.
Japan Rail Freight Transport Industry Report
Statistics for the 2024 Japan Rail Freight Transport market share, size and revenue growth rate, created by Mordor Intelligence™ Industry Reports. Japan Rail Freight Transport analysis includes a market forecast outlook to 2029 and historical overview. Get a sample of this industry analysis as a free report PDF download.
