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

Rail Shipping Canada: How to get started | RailGateway.ca? ›

In 2021, shippers paid 4.16 U.S. cents per revenue ton-mile on railways in Canada and Western grain shippers paid nearly 30 percent less than the average rate at just 2.97 U.S. cents per revenue ton-mile. Canadian rail freight rates have grown more slowly than U.S. rates — 43% vs.

What is the rate of rail freight in Canada? ›

In 2021, shippers paid 4.16 U.S. cents per revenue ton-mile on railways in Canada and Western grain shippers paid nearly 30 percent less than the average rate at just 2.97 U.S. cents per revenue ton-mile. Canadian rail freight rates have grown more slowly than U.S. rates — 43% vs.

Can you ship by train in Canada? ›

Shipping via rail makes it easy in the transportation of easily ship bulk construction or whatever freight cargo you desire to be shipped. Freight, via rail cargo, saves time and money when shipping by train when you compare on time spent and costs spent on shipment by truck.

Is freight rail profitable? ›

Railroads are USA's most profitable industry with a 50% profit margin.

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.

How much does rail shipping cost per ton mile? ›

The annual rate of increase for the initial period was $0.126 per ton-mile in 2020 compared to $0.196 per ton-mile in 2023. This is a more than 5X year-over-year increase to move freight for the 500-mile distance with costs rising from $57 per ton in 2018 to $98 per ton.

Is rail freight cheaper than truck? ›

Cost: Advantage for Rail Shipping

When it comes to cost, rail transportation has the advantage. Rail shipping is much more cost-effective than truck shipping for several reasons. Rail is a much more fuel-efficient mode of transportation. Railcars can also carry much more volume than trucks.

Who owns VIA Rail Canada? ›

VIA Rail Canada, Inc., Canadian state-owned passenger-railway system.

How much does it cost to take a train across Canada? ›

Fares
One way per person in CAD inc taxEconomy Class reclining seatPrestige class sleeper***
Toronto to Vancouver (or vice versa):From $444From $4,655
Toronto to Winnipeg (or vice versa):From $218From $2,601
Toronto to Jasper (or vice versa):From $367From $3,507
2 more rows

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.

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.

Are railroads a good investment? ›

And the market projected growth rate for railroads is expected to increase at an annual growth rate of 5%. That gives investors a good reason to look for railroad stocks to buy. One catalyst for this demand is likely to come from the push for onshoring of corporate supply chains.

What is the most profitable freight? ›

Hazmat Hauling

The Hazmat industry has some of the top paying trucking companies. This is because Hazmat hauling involves transporting hazardous materials such as chemicals, fuel, and explosives.

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.

How slow do freight trains go? ›

Signal speeds

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

What percentage of freight is shipped by rail? ›

Trucks move roughly 72.6% of the nation's freight by weight. Freight railroads account for roughly 40% of U.S. long-distance freight volume (measured by ton-miles) — more than any other mode of transportation.

What is the RRB rate in Canada? ›

Basic Info. Canada Long Term Real Return Bonds Rate is at 1.57%, compared to 1.60% the previous market day and 1.67% last year. This is lower than the long term average of 2.19%.

How much does a train ride cost in Canada? ›

Compare fares by class
ROUTES Fares valid for both directionsECONOMY CLASS Escape fareSLEEPER PLUS CLASS Upper berth, fare per person
WINNIPEG—VANCOUVERSTARTING AT $322 *STARTING AT $754
WINNIPEG—EDMONTONSTARTING AT $174 *STARTING AT $494
TORONTO—WINNIPEGSTARTING AT $253 *STARTING AT $615
4 more rows

What is the average cost per mile of rail? ›

Very generally, rail infrastructure construction costs can range from $2 million per mile in flat rural areas to $300 million per mile or more in urban areas.

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