Rail Markets



Passenger services
Typical passenger market segments are urban, including metros, trams, and light rail systems, commuter or suburban services, and intercity, which includes conventional and high-speed trains.

Urban railways generally serve the city center and immediate environs; within the central business district, metros usually run underground. Typical car capacity is about 100 passengers seated, or crush loads of around 160. Most metros can travel at speeds of up to 100 kph and are electrified at 750 VDC or 1,500 VDC, usually via a third rail or low-level power contact. A driver’s station is located in every second car; metro trains operate with four or six cars, which are usually automated. Metros are best for moving high passenger volumes for short distances around an urban area. Examples include the London Underground and the Paris Metro.

Trams are another type of urban rail system. Trams often mix with street traffic but some have a reserved right-of-way; they have seating for 80 passengers per car but can carry crush loads of around 120. Most trams operate at 750 VDC; although they have a top speed of 80 kph, their average speed is usually lower. Most trams operate in single or double units with a driver’s station on each car. Many European cities operate tram systems and Melbourne, Australia operates one of the largest tram services in the world.

Light rail systems are often indistinguishable from trams, but in modern usage light rail systems are more likely to have a dedicated right-of-way and are designed to service specific routes such as airports or convention centers. Light rail car seating is similar to that of trams; light rail trains usually operate in sets of two or four cars with a driver’s station at each end and trains are usually electrified at 750 VDC. Light rail services are relatively new; they have lower capacity than a metro but are generally less expensive. However, light rail systems have higher capacity than trams due to train size, acceleration, and a dedicated right-of-way.

Suburban systems usually provide longer distance commuter services—seating density is lower and they offer more comfort for longer travel times. Often bi-level passenger carriages are used to increase passenger capacity and comfort. Suburban systems are typically hauled by electric or diesel-electric locomotives the electrification is usually 25 kVAC.

Modern equipment standards blur the boundaries between light rail and suburban services; similar equipment often serves both. If suburban services operate on common infrastructure with freight services, passenger equipment crash standards are high, which is why most are locomotive hauled.

Conventional intercity passenger services are usually locomotive-hauled using 25 kVAC electric or diesel-electric locomotives. Intercity passenger services often share right-of-way with freight services and can be hauled by the same locomotives. Maximum speeds are around 120 kph. Some intercity train services have multiple classes and sleeper cars. Seating is about 80 passengers in conventional coaches, fewer in first class, which sometimes has compartments and sleeper services.

High-speed rail (HSR) services operate at 250 kph or more. HSR trains generally operate in eight-car sets. Some have integrated locomotives; others have motors distributed throughout the train with passenger seating in what would otherwise be the ‘locomotive section’. Some HSR trains have double deck passenger cars. All HSR trains operate on a dedicated right-of-way so train frequencies are usually fairly high—one train per hour is a typical maximum interval. Trains are always electrified and 25 kVAC is typical.

Passenger trains that operate without a distinct locomotive are often called ‘multiple units’; electric-powered trains are called ‘EMUs’ while diesel powered trains are often called ‘DMUs’. Using this classification, metro, tram, light rail, and some high-speed trains are EMUs. All EMUs and DMUs have electric motors on many wheel-sets to provide traction. This is unlike conventional trains and locomotive-hauled suburban trains, where only the locomotive has powered wheel-sets and the rest of the rolling stock is hauled (pulled or pushed).

The table below summarizes the principal characteristics of equipment used in each market segment.



Typical measures of passenger services are passenger journeys or trips and passenger-kilometers. A passenger journey or trip is usually counted from the entrance to the passenger system to the exit. In urban trips that may involve several metro lines, one journey may include travel on more than one train. When train lines are under separate management structures, each segment may constitute ‘one trip’ for accounting purposes. Passenger-kilometers are usually measured on the basis of the rail travel distance between origin and destination multiplied by the number of passengers traveling between each origin and destination.

“Rail passenger services are usually measured by passenger trips and passenger kilometers.”


Passenger revenue calculations are often complex. Charges for passenger services vary by type of service, the means used to collect the fares, and the amount of subsidy provided. For example, many metro systems sell monthly passes that are can be used for an unlimited number of trips or trip segments. Special categories of passengers—students, disabled, retired—are often eligible for discounted monthly passes. Other metro systems charge on a segment basis and use rechargeable ‘stored value’ cards to levy charges for each trip. Stored value cards can be purchased with discounts depending upon advance sales or passenger category—student, disabled, or retired. For special-purpose light-rail lines, such as airport services, a flat fee per trip is the norm.

Typically, charges for suburban services are based on distance and time of day a surcharge may be applied during peak travel periods. If suburban and urban services are coordinated, the same ticket can be used for both segments and revenues are usually allocated between services an equitable cost-related basis such as passenger-kilometers.

“Urban passenger services are operated as a public service; long distance services generally cover their operating costs.”


Fares for intercity services are usually related to class of service and distance. However, many HSR systems have airline-type pricing related to advance ticket sales, class of service, time of day, and distance. In many countries with extensive HSR and conventional provincial services, ticketing is integrated to provide competitive and compensatory services between each service type. Revenue sharing between intercity and metro services is rare but occurs in some places.

Typically, urban services are operated as public services subsidized by government. Some urban systems, such as the Hong Kong MTR, and London Underground, operate at break-even for operating costs. Rarely are they expected to cover capital costs.

Rail passenger transport is particularly good for rapid movement of massive volumes of people, thus urban rail is an essential element in urban planning. Urban rail systems define population centers and dramatically affect urban development patterns. Similarly, commuter and suburban passenger services are an effective and relatively inexpensive way to connect suburban communities with the city center and one another. Urban and suburban rail systems can provide significant public benefits, including substantial savings that accrue to all levels of government and private citizens—reduced congestion and pollution, fewer accidents, and improved spatial planning. Furthermore, urban and suburban rail systems generate financial benefits from rising property values and higher quality development patterns. Some urban and suburban rail systems, notably in Japan, have tapped into property value increases successfully enough to finance their rail systems as well as generating all the above-mentioned public benefits.

Intercity passenger service revenues often cover operating costs, but few are expected to cover their capital costs. Most of SNCF’s TGV services operate at a profit, including equipment costs, but its provincial or conventional services rarely do. Thus, most passenger services infrastructure costs are subsidized; sometimes government provides rolling stock.

Rail passenger services generate significant public benefits in the form of rapid travel times, reduced road congestion, reduced air pollution and CO2 emissions, and reduced losses from accidents. If passenger demand is high for intercity train services, governments can avoid the cost of additional highway construction, which boosts overall energy efficiency. Sometimes rail transport is the sole means of mobility for distant populations. However, if fewer than 1,000 passengers per day are being transported, long distance bus services are typically cheaper and offer similar or better energy efficiency, depending on train frequency and load factor.

Most rail passenger services have excellent safety records; the number of accidents per passenger-kilometer is lower than most other means of passenger transport. The accidents that do occur often involve a road/rail interface at level crossings.

    
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