Road vs. Rail: Why Switching to Rail Shipping Could Save costs!

Road vs. Rail: Why Switching to Rail Shipping Could Save costs!
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Mona Sohal

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When it comes to transporting goods across Canada or into the U.S., most businesses default to road shipping. While trucking offers flexibility and convenience, rising costs, and risks such as theft are making companies rethink their options. Rail shipping presents a powerful, cost-effective alternative, combining similar transit times with added security, lower rates, and reliability. Here’s a look at why switching to rail shipping could be the best decision for your business’s bottom line.

Significant Cost Savings

Road shipping is widely used but comes with higher costs—especially for long-haul routes. Rail freight offers a more economical solution, particularly for companies moving large quantities of goods over long distances. The reduced cost of fuel, fewer drivers, and consolidated freight make rail significantly cheaper than road shipping, saving you money while maintaining reliable service.

Example Savings: A typical long-distance shipment may cost up to 40% less when moved by rail compared to road. This is ideal for industries dealing in bulk shipments, where even small cost reductions can lead to large savings over time.

Comparable Transit Times

A common misconception is that rail shipping is slower than road. In reality, rail transit times are highly competitive with truck shipping, especially for medium- to long-distance hauls. RailGateway can coordinate 24-hour on-site loading and unloading in most major Canadian cities, so your shipments keep moving without delay.

Reliability: With dedicated rail schedules and fewer unexpected delays, rail offers predictable transit times, giving you confidence in meeting delivery schedules.

Enhanced Security and Lower Theft Risk

Theft is a growing concern in the transportation industry, especially for valuable or sensitive shipments. Rail shipping offers a much lower theft risk compared to road, thanks to secure terminals, less frequent stops, and limited public access. When you choose rail, you’re choosing a safer shipping option that reduces the risk of loss or damage in transit.

Added Peace of Mind: Lower risk means you don’t need to worry about additional security costs or disruptions caused by stolen goods, making rail an appealing choice for high-value cargo.

Eco-Friendly and Sustainable

For companies that prioritize sustainability, rail shipping is an environmentally-friendly option. Trains produce significantly lower greenhouse gas emissions compared to trucks, reducing your company’s carbon footprint and aligning with green business practices.

Sustainability in Action: By choosing rail, you’re supporting more sustainable logistics practices. Every rail shipment helps reduce overall emissions, which is particularly valuable in today’s climate-conscious business landscape.

Specialized Rail Options for Temperature-Sensitive Goods

RailGateway offers both heated and refrigerated rail shipping options, ideal for products that need protection from extreme temperatures. Whether you’re shipping food products that require refrigeration or items that could freeze in winter months, our specialized rail solutions ensure your goods stay at the required temperature from departure to arrival.

Example Applications: For industries like pharmaceuticals, food, and other temperature-sensitive goods, this added flexibility can make rail the only viable option for reliable transport.

Conclusion: Save Money and Gain Peace of Mind with Rail Shipping

Switching from road to rail shipping isn’t just about cutting costs—it’s about choosing a transportation method that aligns with your business’s needs for security, reliability, and sustainability. With competitive rates, comparable transit times, and a low risk of theft, RailGateway makes it easy to shift to rail without sacrificing performance. Contact us today to explore how rail shipping can boost your bottom line and streamline your logistics.

Picture of Francine Goulet
Francine Goulet

Francine Goulet is the Founder and CEO of RailGateway.ca, one of the largest intermodal service providers in Canada, serving the North American market...

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