The auto industry is constantly exploring new methods of transporting vehicles. It’s no surprise then that many automakers have turned to rail to transport their vehicles. Rail offers a number of benefits for automotive manufacturers, particularly when it comes to short- and medium-haul transportation. It’s secure, environment friendly and less expensive than other modes of transportation.
In fact, the cost per mile is generally lower than trucking. Additionally, it can help reduce congestion on highways by eliminating bottlenecks created by traffic coming from different directions for automakers. The costs may be higher upfront than other forms of transport, but the savings over time more than make up for it in the long run as you see below.
Secure transportation for new models
The top reason why manufacturers use rail to transport cars is to secure transportation for their new models. With road traffic expected to boom over the next decade, there’s no better way to ensure your new car makes it to the end customer without being damaged on its way.
This can be particularly important for auto companies with a new model that’s more expensive than the rest of their portfolio, as there’s a greater risk of their vehicle being damaged beyond repair. Rail is popular with manufacturers who would like to leverage it as an opportunity to showcase their brands to the end customer. To achieve this, most automotive companies use rail carriages to transport their vehicles.
That way, they’re able to showcase their vehicles and brand in the best possible light. A rail is also a great option for automakers who want to introduce new technologies to the public by transporting their vehicles to various events. This can be especially useful for automakers who want to show off their autonomous technology, as it’s easier to transport vehicles with a smaller footprint than to find a place for an event with large open spaces.
Less costly long-haul transportation
Often, automakers will use rail to transport their vehicles between their plant and the port where they’re destined for the rest of the world. It’s a cost-effective way to ensure their vehicles reach customers without being damaged on their journey.
This is particularly important if your vehicle is being shipped to a remote location where there’s a lower risk of damage, but it’s something to keep in mind when planning your logistics. Rail also offers a number of benefits when it comes to long-haul transportation. In particular, it’s secure, environmentally friendly, and more cost-efficient than trucking.
Environment-friendly transportation
Rail is an incredibly environmentally friendly way to transport cargo, as it doesn’t release emissions into the air. The rolling stock itself is also recycled, so it’s a win-win for your bottom line and the environment. The downside to rail as an environmentally friendly transportation mode is that it’s slower than other modes of transport, which means you’ll have to budget for increased transit times.
That said, lower-density areas are ideal for rail, which helps alleviate this issue somewhat. It’s also worth noting that extremely low-density areas aren’t ideal for rail due to the low demand from customers. That’s why you’ll see most automakers using rail to transport their vehicles in lower-density areas.
Shorter lead times and less inventory
Rail is a great way to cut lead times and reduce inventory. That’s because rail carriers don’t need to store vehicles on the track. This cuts out unnecessary costs associated with storage, such as overhead, maintenance, and repairs. That’s particularly important if you’re dealing with complex models that require a higher level of quality assurance.
It’s also worth noting that the shorter the lead time, the better. With shorter lead times, an opportunity to take advantage of your customers can be seized. For example, if you have a new model that’s less popular than your other products, you can ship it out before the rest so that you can capture the demand for that model.
Weight reduction and improved handling
When it comes to weight reduction, rail is a clear winner. To begin with, most rail lines are fully electrified, which cuts down on the weight of locomotives. That means that they can be more powerful while still emitting zero emissions into the air. Additionally, the rails themselves are made out of lighter materials, which further improves weight reduction. That’s particularly important because rail lines are often more strenuous than others.
That means that they have to be able to carry a higher level of weight over long distances, which requires a high-strength material. Finally, rail is also the best way to improve the handling of your vehicles. By reducing the weight of your vehicles, handling is improved both on the track and on the road. That means that you’re able to deliver customers their vehicles with greater ease.
What’s next for rail in the auto industry?
Since its launch in 2008, the trend for rail transportation in the auto industry has increased dramatically. In fact, according to a report by the International Transport Forum, 80% of all new car production will be transported by rail by 2040. The main reason for this rise in popularity is the cost savings associated with rail transportation. That’s due to several factors. First, costs have fallen significantly.
Second, demand has grown thanks to a growing number of consumers who don’t want to drive. Finally, demand has grown thanks to climate change. This has led to a rise in the number of extreme weather events, including hurricanes and floods. To help address these issues, governments have discussed the need to build new infrastructure, including bridges and tunnels. Automakers likely help to increase the popularity of rail.
Automakers will also likely continue to develop new technologies. That’s thanks to regulations that require all new vehicles to be autonomous by 2022. That will require automakers to find a way to showcase autonomous technology. However, it’s likely that rail will be one of the options, as it gives automakers the opportunity to showcase their brands and new technologies, including autonomous vehicles.
Conclusion
Automakers have realized the potential of rail transportation for moving cars, and many are now constructing new rail yards and switching equipment for moving new and used cars via rail. The booming electric car industry is also helping to make rail transportation more viable since it has led to an increase in the demand for rail cars to store and transport electrified vehicles.
Automakers are reliable and environmentally friendly way of moving cars. It’s better than driving, since it doesn’t use fossil fuels and has no emissions, and it’s better than trucks since it doesn’t damage the environment. That’s why it’s likely to become more common in the future.
