Rail & Road
Mixed signals for June on US rail freight ‣ WorldCargo News
International intermodal traffic has taken an expected downturn, while domestic carloads have risen. The Association of American Railroads (AAR) has reported a fourth consecutive month of year-on-year carload growth in the USA. The industry’s representative body says that offers a glimpse of recovery in the industrial economy. However, this has been tempered by that decline in intermodal volumes, ending nearly two years of gains and reflecting growing uncertainty across freight and consumer markets.
In the AAR’s monthly review, June 2025 saw a 2.1% increase in total rail carloads over the same month last year, driven by gains in grain, coal and other industrial commodities. In contrast, intermodal traffic dropped 2.9%, with containerised volumes weighed down by volatile supply chains and softened demand. As the AAR put it: “Rail freight volumes have followed that lead, reflecting a mix of cautious optimism and lingering hesitation across key sectors.”
A tale of two freight streams
Intermodal traffic in the USA is dominated by containerised international shipments. As might have been predicted, the slowdown in landings at US ports is reflected in the container numbers moved by rail. The overall figure fell by over 31,000 units in June, the first such year-on-year drop in 22 months. Weekly intermodal originations averaged 260,834 units, falling short of the long-term average for the month. “Looking ahead, intermodal performance will hinge on a range of factors,” said the ARR. “[These include] developments and policy impacting global supply chains and the strength of consumer-driven freight demand.”
Conversely, on the conventional carload side, June volumes averaged 226,259 per week. That’s the best performance since 2021. Across the twenty carload commodity categories measured by ARR, ten saw growth, including grain, coal and chemicals. Total carloads were up 4.8% for Q2 and 2.4% year-to-date, making the first half of 2025 the most active period since the pandemic-era freight slump.
Coal, grain and chemicals show resilience
Despite a dependence on service industries, America is still a heavily industrialised economy. As such, domestic movements play a significant role in the rail freight industry. Reflecting that, coal made up the second-largest volume commodity and saw a 2.4% rise in June, its fourth straight monthly gain. However, as the AAR noted, this trend “reflects carload weakness last year more than higher volumes this year”. Year-to-date coal carloads were up 6.4%. That’s nearly 90,000 more than in 2024.
Grain saw the biggest year-on-year gain in June at 11.3%, following improved export demand, particularly for corn. That may be attributable to a reshaping of export markets, in light of decreased demand from China, a collateral effect of the Trump administration’s tariff regime. This did, however, mark the fourth straight monthly increase and the sixteenth rise in 17 months. Chemicals, though slipping 0.6% year-on-year, remain one of the highest-volume categories. Year-to-date totals were up 1.6%, reaching the highest ever for the first half of a year.
Industry is still advancing under caution signals
The manufacturing sector remains subdued. The American Institute for Supply Management Purchasing Managers’ Index, a monthly economic indicator, improved slightly to 49.0% in June, but that is still below the 50% threshold that indicates growth. The AAR’s industrial products category, a measure by the Association that gives a rating for industrial rail freight health, was up just 0.4% year-on-year, with overall volumes still down slightly over the first half of 2025.
The AAR Freight Rail Index (FRI), which strips out coal, grain and intermodal, dipped 0.5% from May to June, its lowest level in over a year. However, there was a 0.7% rise in seasonally adjusted carloads excluding coal and grain, suggesting isolated strength in parts of the industrial economy. The prospects for American railroads do seem to sway considerably, reflecting the volatile economic prospects overall.
Outlook remains uncertain for 2025 H2
Rail has been proving a barometer for the wider American economy. “In recent months, the US economy has defied easy characterisation,” said the AAR. “[It’s] caught between signals of underlying strength and uncertainty regarding the road ahead.” That uncertainty spans core economic indicators, from consumer spending to monetary policy, which is reflected in rail’s mixed performance.
The second half of 2025 will likely test both resilience and adaptability across the US freight market, according to the AAR conclusions. With intermodal faltering and carloads holding on, the rail sector stands at the confluence of global logistics, domestic industry, and economic confidence. Whether the railroads can react quickly to changing economic dynamics remains to be seen.
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Rail & Road
Renfe Achieves Record-Breaking Growth in First Half of 2025 with Over Two Hundred Seventy Million Passengers, Setting New Milestone in Spain’s Rail Industry
Sunday, July 20, 2025
Renfe has achieved a remarkable milestone in the first half of 2025, carrying over two hundred seventy million passengers, marking a 3% year-on-year increase. This unprecedented growth sets a new record for the Spanish rail operator and underscores the rising demand for rail travel across the country. The growth is driven by a combination of enhanced services, modernized fleet, and affordable fare schemes, which have all contributed to Renfe’s ability to meet the growing needs of both commercial and public service passengers. This milestone highlights Renfe’s position as the leading rail operator in Spain and reinforces its role in shaping the future of rail transportation.
Surge in Demand for High-Speed and Long-Distance Rail Travel
Renfe’s high-speed services, including AVE, Avlo, and Alvia, have seen a substantial increase in passengers. More than 17.9 million travelers used these fast services, reflecting a 10.9% rise compared to the same period in 2024. This surge is attributed to the convenience and speed of these services, which offer an attractive alternative to air and car travel for both domestic and international passengers.
The highest traffic day occurred on June 20, with over 135,600 passengers traveling on Renfe’s network, a testament to the growing demand for efficient rail connections across Spain. The impressive growth in high-speed rail travel shows that Spain’s rail network is becoming increasingly popular as a preferred method of transportation for a broad range of passengers.
Modernization of Fleet to Enhance Service and Capacity
One of the key contributors to Renfe’s growth is its continuous investment in modernizing its fleet and improving service offerings. In line with its strategy to improve passenger experience, Renfe has introduced the advanced S106 AVE and Avlo trains, which have replaced older Alvia models. These new trains are equipped with modern technology, offering better energy efficiency and enhanced comfort, which have contributed to the rise in ridership.
The introduction of these new trains has helped Renfe improve service quality and attract more customers. The modern fleet supports the growing demand for high-speed travel, ensuring that Renfe can maintain its competitive edge while providing a comfortable and efficient travel experience. With better capacity and shorter travel times, Renfe is well-positioned to continue expanding its ridership.
Growth Across Public Service Routes
Renfe’s public service routes have also experienced a boost in passenger numbers, reinforcing its overall growth. Public transport services saw a total of 259.5 million passengers, which represents a 2.8% increase compared to the previous year. The Cercanías network, which connects major cities and metropolitan areas, accounted for the majority of this growth, with 235.9 million passengers—a 3.91% increase over 2024.
Additionally, Renfe’s Avant services, which connect regional cities with high-speed rail options, saw a significant rise in passengers, reaching a total of 6.7 million. This was an increase of 139,000 compared to the first half of 2024, demonstrating the growing appeal of shorter high-speed routes.
Affordable Fare Schemes Fuel Growth
A major factor in Renfe’s success is its commitment to affordability and accessibility. Since 2022, Renfe has issued more than 21 million multitrip passes, making rail travel more affordable for regular commuters and frequent travelers. The multitrip pass system has proven to be extremely popular, with 7.1 million passes distributed in 2023 and 7.7 million in 2024. By mid-2025, Renfe had already issued more than 4 million passes, further boosting its ridership.
Renfe introduced new monthly passes in July 2025, offering unlimited travel across the Cercanías, Rodalies, and Media Distancia networks for just €20 ($22) for adults. Youth passengers, aged between 1999 and 2010, can access the same pass for €10 ($11), making travel even more affordable for younger commuters. These passes have helped increase the overall number of passengers using Renfe’s services, especially on the busy commuter lines.
Renfe’s Path to Continued Growth and Sustainability
Renfe’s ability to increase its ridership while maintaining affordability reflects its strong position as a leader in Spain’s rail transport sector. The company’s focus on fleet modernization, improved service quality, and cost-effective ticketing is driving its sustained growth. As Renfe continues to make strategic investments and enhancements to its services, it is well-positioned to meet the growing demand for efficient, sustainable, and accessible rail travel.
Renfe’s future growth prospects are promising, with ongoing efforts to expand its national network, improve customer experience, and enhance the sustainability of its operations. By balancing modern infrastructure with affordable fare schemes, Renfe is set to continue its expansion, further solidifying its status as Spain’s primary rail operator.
With its focus on providing high-quality services and enhancing connectivity across Spain, Renfe is poised for continued success in the coming years.
The Hanoi Department of Construction announced it is accelerating steps to meet the goal of developing 15 urban railway lines, totaling about 600km, by 2045.
The city is currently rushing to complete procedures to begin construction on two urban railway lines in 2025, inclulding Line 2, Nam Thang Long – Tran Hung Dao section, 11.5km long, and Line 5, Van Cao – Hoa Lac section, 38.43km long.
This is part of Hanoi People’s Committee Resolution No188 to develop urban railways in three phases.
From 2024 to 2030, the city aims to complete about 96.8km, including Lines 2, 3, and 5, while preparing investments for 301km of Lines 1, extended 2A to Xuan Mai, Lines 4, 6, 7, 8, and those connecting satellite cities. The total estimated capital for this phase is about $14.6 billion.
From 2031 to 2035, Hanoi will complete an additional 301km of urban railways, with an estimated capital of about $22.57 billion. Once completed, urban railways will handle 35-40 percent of public passenger transport.
From 2036 to 2045, the city will complete the remaining 200.7km supplemented under the Capital Master Plan and revised General Plan. The estimated capital for this phase is $18.25 billion.
Developing the urban railway system will not only ease Hanoi’s urban traffic pressure but also promote sustainable, modern, and connected urban development. Once completed, the urban railway network will serve as the backbone of the public transport system, driving development in both the inner city and satellite urban areas.
Dang Huy Dong, Director of the Institute for Planning and Development Research, stated that completing the urban railway system in just under 12 years is a daunting task.
It may not be feasible without integrating TOD (transit-oriented development) urban models along metro station routes. This requires exceptional management that goes beyond current investment and construction regulations.
According to Dong, without solutions for management mechanisms and funding, continued reliance on ODA loans will hinder Hanoi’s ability to complete its historic urban railway mission. To secure funding, TOD planning and auctions for real estate investment rights in these areas are essential.
Public transportation includes various types, but only urban railways can effectively address urban traffic issues in cities with populations of 5 million or more.
Hanoi will conduct a review of land ownership and usage along the corridors, project locations, and TOD planning areas of approved urban railway lines.
TOD area is developed around stations and stops of public transportation, focusing on creating living, working, and recreational spaces closely connected to these transport routes. The goal of TOD is to encourage the use of public transportation, reduce traffic congestion, and foster sustainable urban development.
VND17,509 billion railway complex
Hanoi People’s Committee has submitted a proposal to the Prime Minister regarding the location, scale, and boundaries of a railway industry complex project in southern Hanoi (in communes of Chuyen My and Ung Hoa, Hanoi, covering about 250 hectares).
Previously, Vietnam Railways Corporation proposed that competent authorities review and approve the investment policy for this project.
The proposed railway industry complex is a multifunctional facility, including a factory for manufacturing and assembling vehicles, equipment, and spare parts; a research center; a maintenance and repair center; infrastructure connections to the national railway; and supporting facilities.
The preliminary total investment for the railway industry complex is VND17,509 billion. Public investment will fund the railway line connecting to the national railway, technical infrastructure, an R&D center, and state-supported components.
State capital injected into enterprises will fund the assembly plant and related components, while inviting investors to participate and collaborate in business operations.
If approved by authorities, the railway industry complex project will be prepared for investment within one year and constructed within three years to complete Phase 1 by 2029.
According to Vietnam Railways Corporation, the complex aims to produce domestically and gradually localize hardware and software components for information, signaling, and power supply systems; and master operations and maintenance. And it will produce certain spare parts for high-speed railways. It will also involve technology transfer, equipment investment, and production of locomotives and carriages for national railways with speeds below 200 km/h, as well as purchasing designs and manufacturing for urban railways.
The project will also establish a functional area for major repairs of all railway vehicles and equipment, initially focusing on national and urban railways.
N. Huyen
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