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

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? ›

Freight rail contributed over 95% of the $113 billion in total rail transportation revenues in 2022. Passenger rail earns the remaining 4%. The largest share of long-distance freight (40% of ton miles) and nearly one-third of exports move by rail before leaving the US.

How does shipping by rail work? ›

Determine the type of cargo and the destination. Work with a freight railroad company to schedule a train and determine the necessary logistics. Load the cargo onto rail cars, which are then connected to a train. The cargo is then transported to the final destination.

How does rail logistics work? ›

Rail logistics, in its basic form, can be described as the integrated system that oversees and regulates the transport of goods via railways. This is done by meticulously planning, executing, and controlling the processes required for an efficient transit and storage of goods.

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.

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

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.

Is it cheaper to ship by rail or truck? ›

COST. If you're hauling goods crosstown or even intrastate, trucking may be the better bargain. It's also a good consideration if your volume doesn't even fill one rail car. However, for longer journeys—especially those over 600 miles—shipping by rail is the far more cost-effective option.

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 many rail companies are there in Canada? ›

Over 60 railways operate in Canada.

What is the best freight rail system in the world? ›

Running on almost 140,000 route miles, the U.S. freight rail network is widely considered the largest, safest, and most cost-efficient freight system in the world.

What are the big 7 railroads? ›

This is an interactive map of the major freight railroads, also known as class I railroads in the United States. They include CSX, Norfolk Southern (NS), Burlington Northern and Santa Fe (BNSF), Union Pacific (UP), Canadian Pacific (CP), Canadian National Railway (CN), and the Kansas City Southern (KCS).

What country moves the most freight by rail? ›

Railways, goods transported (million ton-km) - Country Ranking
RankCountryYear
1China2018
2Russia2019
3United States2019
4India2017
108 more rows

How do freight railroads make money? ›

A railroad is like any other business, you sell enough or something at enough of a margin to cover your overhead and leave something fot the owner. Railroads sell transportation, predominately low cost low value transportation at that.

Who owns freight railroads? ›

If you're talking about the freight railroads, almost all the track nowadays is owned by the Union Pacific or BNSF.

How much does it cost to ship a car by train in Canada? ›

It can range from $1100 to $1500 for train and open hauler trucks, while using an enclosed trailer may cost between $2000 and $2500.

Does Canada have freight trains? ›

There are two major publicly traded transcontinental freight railway systems, Canadian National (CN) and Canadian Pacific Kansas City (CPKC).

Can you ship items by train? ›

The short answer is that trains can haul just about anything. From materials mined from the earth to the products that make a house a home and everything in between, you can ship it by rail.

Are trains still used for shipping? ›

Freight is moved by rail, waterways, pipeline, truck, and air throughout the United States.

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