Rail Shipping Canada: How to get started | RailGateway.ca (2024)

This post was last updated on October 2nd, 2023

Canadian businesses are about to be hit with a new and exciting change: rail carrier shipping.

An increasingly popular it’s a more efficient and cost-effective way to ship goods than traditional methods.

As the demand grows, you should make some important considerations before jumping into the growing market of rail service. In this blog post, we’ll outline five steps that will get you ready forrail shipping in Canada!

Table of contents

  1. Five Steps in Getting Ready for Rail Service
    • Consider your product type
    • Check your network
    • Know your rail shipping rates
    • Get your equipment
    • Get your documentation in order

FAQS

  1. Can you ship by train in Canada?
  2. How much does it cost to ship by rail?
  3. How do I track my rail shipment?
  4. Is shipping by rail cheaper than truck?
  5. What kind of shipments can I book using your services?
Rail Shipping Canada: How to get started | RailGateway.ca (1)

Intermodal Transportation in Canada

With an increased focus on domestic intermodal traffic, the Canadian railway industry has undergone massive changes in recent years.

And now that the industry is ready to recover its lossesand welcome new players into the game, it’s essential to explore the steps required before executing this type of supply chain shipping for your company.

Rail Shipping Canada Considerations

– How will your business capitalize on the growing demand?

– What are you looking to ship via rail freight transportation, and what is feasible given your current supply and demand chains?

– Where are you currently experiencing service issues, backlogs, delays?

– Are you experiencing an increase in rail shipping rates?

Canada offers several benefits for businesses looking to ship via rail service. Access and ease of service, environmentally friendly transportation, and potential cost savings of transportation services upfront.

Rail Shipping Canada: How to get started | RailGateway.ca (2)

5 Essential Steps in Getting Ready for Freight Rail Service

Getting ready for rail shipping is as easy as following 5 simple steps.

1. Consider your product type

What type of goods do you want to transport via shipping containers? Are they fragile or heavy-duty? Are they packed or unpacked?

Know that trains are great transportation solutions for almost any type of cargo, from grain to vehicles and from common consumer goods to construction equipment.

But, it’s good to know that some products and hazardous materials are strictly regulated when using rail shipping. Stay informed about those regulations by consulting transportcanada.ca or registering for their dedicated Newsletter.

2.Check your network

Are you currently experiencing issues with the railroads or another intermodal service provider that may be solved byswitching carriers?

The global marketplace is changing, and long haul North American services with it. Canadian railways are ready to provide better service, but it’s important to make sure that your partners can leap with you.

If a particular railroad provides poor performance or increased costs, consultRailGateway.cafor a list of available carriers and service routes.

Get your FREE quoteto learn more about what opportunities await you in long-distance freight rail.

3.Know your rail shipping rates

Some products have a generalized transport costof an intermodal transport solution.Check with RailGateway.cato find out how much it will cost you to ship the cargo you want before making any commitments.

Rail rates are subject to change at different times of the year due to weather conditions and other factors that affect performance on Canada’s railways.

Plan ahead! It never hurts to get more than one quote for future planning purposes.

4.Get your equipment

The process of rail shipping in Canada is straightforward, but there are certain requirements to follow.

First and foremost, you need a suitable container for the trip. Shipping containers must be clean (not contaminated) with no hazardous contents or materials inside.

For more information aboutwhat containers are available with RailGateway, visit our dedicated page on our .

5.Get your documentation in order

For rail shipping, you’ll need to be able to provide a commercial invoice detailing the contents and value of items shipped.

Be sure also to check that all necessary documents are readily available before we arrive at your location: permits, licenses, and insurance certificates that may be required by law.

Frequently Asked Questions

Can you ship by train in Canada?

Absolutely, we can!

Canada benefits from a vast rail network that allows deliveries on long distances, from a point on one coast to another without much trouble.

Canadian railroads are equipped to handle a variety of freight traffic, including being renowned as the safest method to move dangerous goods and hazardous materials (even though this type of shipment is strictly regulated).

At RailGateway, we partner with two major and reliable Canadian Rail Companies, CP (Canadian Pacific Railway) and CN (Canadian National Railway Company).

How much does it cost to ship by rail?

Rail rates are subject to change based on weather conditions and other factors influencing railway efficiency throughout the year.

Did you know, though, that you can transport two to three truckloads in a single railcar? This equals cost savings in any light.

How do I track my rail shipment?

With RailGateway, you’ll get a comprehensive status update every day that will show you all of the information about your intermodal transportation shipment from pick up and delivery locations to appointments, container numbers, and drops to where your container is in transit. All of your railway freight shipping needs are in one place!

Is shipping by rail cheaper than truck?

It’s difficult to compare costs against one another because it depends on the type of equipment you are using and what kind of cargo you are transporting.

That said, train transport is generally more cost-effective than truck transport if you plan a shipment on long distances.

What kind of shipments can I book using your services?

RailGateway.ca offers full load 53′ and 40′ intermodal transportation services across Canada coast to coast and cross-border shipping via the Mississippi corridor.

We can pick up from any dock/port going to any dock for all railroad freight.

Freight shipping by rail is one of the biggest trends in freight transportation.

Rail transport has many advantages, including lower cost per kilometre than trucking and less congestion on highways. It also offers better fuel efficiency than trucks.

Rail shipments are also more secure than other forms of transportation because they require minimal loading or unloading at the destination terminal.

And most rail carriers offer door-to-door service with convenient pickup options.

Railways have been used as a means of transportation since the mid-1800s, and today they are still widely relied upon.

Rail shipments can be faster than by truck or air, but getting your company ready for rail shipping will take some time.

Get started on Intermodal Rail Shipping with our Rail Carrier!

Once you’ve addressed all these considerations, it’s time to move forward into getting quotes from carriers that specialize in rail freight service across Canada!

With RailGateway.ca, it’s never been easier to ship freight with rail. Contact our experts and check out our best rail freight rates, route, and transit time to move your shipment across the country!

And know that whether you’re shipping fromToronto to Vancouver,Montreal to Calgary, orEdmonton back to Toronto, we atRailGatewaycan deliver.

Request your FREE rail quote with the experts at RailGateway today!

Rail Shipping Canada: How to get started | RailGateway.ca (2024)

FAQs

Is freight rail profitable? ›

Freight rail contributed over 95% of the $113 billion in total rail transportation revenues in 2022. Passenger rail earns the remaining 4%. The largest share of long-distance freight (40% of ton miles) and nearly one-third of exports move by rail before leaving the US.

How much freight is moved by rail in Canada? ›

Some C$380bn (£214bn) in goods is moved by rail each year and railways move half of the country's goods for export, according to the Railway Association of Canada. Ahead of the full shutdown, both CPKC and CN had already begun pausing some shipments.

Can you ship by train in Canada? ›

Rail freight can accommodate a wide range of goods, from bulk commodities like grains and minerals to manufactured goods and intermodal containers. The key to effective rail shipping is understanding the types of rail services available and determining the best fit for your logistics needs.

How does rail shipping work? ›

How does rail shipping work?
  1. Determine the type of cargo and the destination.
  2. Work with a freight railroad company to schedule a train and determine the necessary logistics.
  3. Load the cargo onto rail cars, which are then connected to a train.
  4. The cargo is then transported to the final destination.

Which railroad makes the most money? ›

Union Pacific Railroad leads the market

In 2022, the company generated some 23.16 billion U.S. dollars in freight revenue and employed more than 30,700 people in that year.

What is the future of rail freight? ›

Rail freight nearing peak

Forecasts of future rail freight volumes are based on a combination of short, medium, and long-term Australian production and global demand outlooks. Under a central scenario, the total domestic rail freight task is projected to grow by around 5.7 per cent between 2020 and 2050.

How much does rail shipping cost per ton-mile? ›

(In this analysis, the average price to ship by truck, across all markets and types of freight, is 15.6 cents per ton-mile, versus 5.1 cents for rail.) The ratios vary from one market to the next because shipping rates vary by distance and type of service—carload, bulk, intermodal, and automobile transport.

Is rail cheaper than trucking? ›

Rail shipping is considered one of the most cost-effective modes of transportation, especially for large volumes traveling long distances. Due to its ability to move major quantities of freight at one time, rail shipping has a lower cost-per-ton-mile (the cost of moving one ton of freight one mile) than truck shipping.

What country moves the most freight by rail? ›

As of 2022, the United States was the country that transported a significant amount of freight. At over 2.2 trillion tonne-kilometers of cargo, the country dwarfed all others. Germany came second, with approximately 123 billion tonne-kilometers.

What is the name of the train company in Canada? ›

Canadian National Railway - Wikipedia.

How long can freight trains be in Canada? ›

Up until the 1990s, the average freight train in Canada was about 5,000 feet (1.54 kilometres) long and weighed 7,000 tons. But it is now not uncommon to see these trains stretch to 12,000 feet, sometimes as much as 14,000 feet (more than four kilometres), weighing up to 18,000 tons.

How much does it cost to train across Canada? ›

How much does it cost to ride the train across Canada? The cost varies between routes and the time of year but for the 2024 season for travel between Toronto and Vancouver, it will cost around CAD $2500 per person in the winter months and $4500 per person in the summer months for a Sleeper Plus cabin.

How much does it cost to ship on train? ›

This means the cost of transporting a ton of freight by rail for a 1,000-mile distance climbed from $98 per ton in 2018 to $160 per ton in 2023.

How slow do freight trains go? ›

Federal regulators limit the speed of trains with respect to the signaling method used. Passenger trains are limited to 59 mph (95 km/h) and freight trains to 49 mph (79 km/h) on track without block signal systems. (See dark territory.)

How do freight trains stay on the track? ›

The ties are set into the loose gravel or ballast, which typically consists of loose stones to help transfer the load to the underlying foundation. The ties "float" on the ballast and this is how the weight of the track keeps them stabilized, allowing trains to run on tracks.

Do railroads make a lot of money? ›

The US economy is colossal. In fact, it represents more than 20% (1/5th) of the entire global economy. So, with corporate profits generally on the up, what industries are the biggest profit-makers?

Do railways make a profit? ›

Railways achieved highest ever total revenue of 2,40,177 cr in 2022-23 with operating ratio of 98.10%. CAG report examined railways finances to end of March 2022 and made recommendations. Railways' total receipts in 2020-21 were 1,91,367 cr, showing incremental revenues of 50,584 cr.

Is freight business profitable? ›

The trucking business can be profitable if done the right way. However, many truckers struggle to make ends meet because they don't have enough cash flow to cover their expenses. The cost of operating their trucks, such as fuel prices and maintenance, can have a huge impact on their bottom line.

Are railroads a good investment? ›

Railroads are one of the most safe and efficient ways to transport goods across state lines and through country borders. The global railroad market was last valued at $281.24 billion and is projected to grow at a CAGR of 5.6% from 2023 to 2030.

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