Freight Transportation Systems: Comparing North America and Europe

This report provides a comparative analysis of the freight transportation systems in North America and Europe. It examines the role of railways in creating a sustainable and competitive transport market, while also addressing the decline in their use due to the rise of roadways. The report highlights structural disparities, operational differences, and policy impacts following the Second World War. It explores the influence of globalization, technological advancements, and trade costs on the freight industry. The analysis includes factors such as infrastructure, regulations, and the competitiveness of various transport modes. The report compares the North American and European systems, considering differences in port infrastructure, corridor congestion, and the impact of regulatory reforms. The conclusion emphasizes the ongoing convergence of the two systems and the importance of monitoring various attributes to understand the disparities and improve industrial scenarios.

Running head: FREIGHT TRANSPORTATION SYSTEM
FREIGHT TRANSPORTATION SYSTEM
Name of the Student:
Name of the University:
Author Note:

1FREIGHT TRANSPORTATION SYSTEM
Table of Contents
Introduction......................................................................................................................................2
The North American and European freight systems........................................................................2
Conclusion.......................................................................................................................................4
References........................................................................................................................................5

2FREIGHT TRANSPORTATION SYSTEM
Introduction
Freight transportation system, especially using the railways as the medium of transport,
plays an important role in the creation of a sustainable transport market that is competitive in
nature. However, the freight transportation system has been experiencing a downfall in use in
recent times, mostly because of the development of roadways. Transportation demand has
evolved over time, mostly due to changes in cargo characteristics and customer requirements
(Rodrigue, Comtois & Slack, 2016). This paper is going to be looking into the difference
between the European and North American freight transportation systems and offer a
constructive criticism of the two.
The North American and European freight systems
Almost all the countries in the world have different freight systems, which have been the
key driver in shaping their economic conditions. The global freight system has been impacted by
technology, infrastructure and different modes that resulted in convergence. Logistical practices
in the freight system of the different countries are not uniform (Tolley, & Turton, 2014). The
North American and the European countries all walk different paths while adopting their freight
transportation systems. To understand the differences, different attributes like gateways, value
chain, corridors, regulations must be analysed.
There are significant differences in the North American and European freight systems
and these differences can be broadly classified under three groups.
 Firstly, the structural disparities which are natural and which can be altered up till a
certain degree through different decision making.
 Secondly, the characteristics and operations of the trains vary significantly in the two
regions.

3FREIGHT TRANSPORTATION SYSTEM
 Thirdly, both the regions were faced by a deep crisis after the Second World War. The
policies that were taken or implemented and how the markets evolved from thereon,
completely different paths.
Globalization has been the reason behind all the changes that every country has witnessed
in terms of long-distance transportation system, communication costs (De Jong et al., 2013).
Even though, in the past the trade costs were thought to be powerless over the structure of the
global trade systems, they are now being acknowledged and being given their due importance.
Even though the North American freight industry experienced an increased productivity
and profitability in the last three decades, the European counterpart has been unable to achieve
such results. Even after the regulations that were implemented in 1991 and giving full open
access to freight rail operators in 2007, the industry in Europe has not been able to come out of
the downward trend that has set in. this disparity in the functions and results of the industry in
the two different regions may be explained by inherent structural changes, like the difference in
the competitiveness of non-surface modes, commodity mix and distance of the shipments
(Gonzalez-Feliu, Semet & Routhier, 2014). The North American railways and the size of the
freight trains are much bigger than the European ones and this is perhaps more striking than the
differences in just the modal share of the two regions. The regulatory reforms that were adopted
in the last century with aims to revive the freight industry produced very dissimilar results in the
two regions under consideration in the current paper.
While comparing the condition and the stance of the freight rail industry in Europe and
North America, all the above mentioned parameters have to be taken into account. To understand
the differences, what must first be understood is, what are the aspects and areas that truly matter
(Frémont, 2016). Also, the different operational actions must also be understood, as well as

4FREIGHT TRANSPORTATION SYSTEM
trying to understand if there are any strategies or policies that can be adopted by the two regions,
that are already used by the other, to enhance the conditions of their respective industrial
scenarios.
There are some basic differences in the prevailing natural conditions of the two
continents that affect the freight system. For example, Europe has more ports than North
America. The distance between the ports in Europe are also shorter, but there are no land bridges
connecting the eastern and western coasts in Europe like in North America (Rodrigue &
Notteboom, 2013). Some corridors and hinterlands in Europe are highly congested, while the
traffic flow in North America is much smoother, opening up the possibility of a better economic
condition in North America. The corridors that are regulate by NAFTA, provide the favour to the
natural gateways and corridors. However, this is gradually being met by the restructuring of the
freight systems in Europe.
Conclusion
The North American and the European ways of freight transportation system are widely
different, but the differences are quickly being met and the gaps are being bridged. Western
Europe has freight systems that are intense both in coastal regions as well as inlands, while North
America already has that advantage across all the countries. Different attributes and parameters
are in play here, which need to be more closely monitored to understand the reasons for the
widespread disparities.

5FREIGHT TRANSPORTATION SYSTEM
References
De Jong, G., Vierth, I., Tavasszy, L., & Ben-Akiva, M. (2013). Recent developments in national
and international freight transport models within Europe. Transportation, 40(2), 347-371.
Frémont, A. (2016). The transfer of freight from road to rail transport. Sustainable railway
futures: Issues and challenges, 109-125.
Gonzalez-Feliu, J., Semet, F., & Routhier, J. L. (Eds.). (2014Sustainable urban logistics:
Concepts, methods and information systems. Springer Berlin Heidelberg.
Rodrigue, J. P., & Notteboom, T. (2013). Containerized freight distribution in North America
and Europe. In Handbook of Global Logistics (pp. 219-246). Springer New York.
Rodrigue, J. P., Comtois, C., & Slack, B. (2016). The geography of transport systems. Taylor &
Francis.
Tolley, R., & Turton, B. J. (2014). Transport systems, policy and planning: a geographical
approach. Routledge.