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Competitive pressure in the freight market

by:CNS     2021-07-07
The pressure of competition in the freight market 2021-06-20 17:09:44 Facing the pressure of competition from roads, aviation, and water transportation, the defects of traditional railway freight transportation methods themselves and the shortcomings of operation and management are gradually exposed. The market for railway freight volume in Western developed countries is gradually exposed. Occupation rate fell for a while: fluctuations in transportation volume caused some railway companies to lose money.Take Japan National Railways as an example. From the first loss in 1964 to the disintegration of the National Railways in 1987, the cumulative loss was 25.4 trillion yen, plus the related debts totaled 37.1 Trillions of yen is approximately equal to Japan’s tax revenue for a year at that time. Losses have not only occurred in Japan, but similar phenomena have also occurred in railway companies in many other developed countries. In order to increase competitiveness and realize the turnaround of railway freight transportation, railway companies in various countries have taken measures. In addition to promoting system reforms and introducing marketing measures, they also promote the development of railway freight transportation to logistics, and re-understand from the perspective of large logistics systems. The railway, through the development of modern logistics, improves its own service quality, and better meets the needs of customers, thus driving a new round of development of the railway freight industry. Take Deutsche Bahn (DB) as an example. In 1994, Deutsche Bahn gradually separated from the federal government and began privatization reforms. Due to historical reasons, the privatization process of German Railways has not been smooth, and the overall freight volume has been on a downward trend. In this case, Deutsche Bahn has set its sights on the logistics market, and through a series of strategic measures to enter the logistics market, logistics is an important means of profit for the company. In recent years, although Deutsche Bahn has been hit by the market, its turnover has grown steadily. This is mainly due to the steady development of rail freight, especially Deutsche Bahn through its own logistics expansion strategy, which also confirms the important role of logistics in the development of rail freight. . In other developed western countries, railway logistics have played a similar role to varying degrees.
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