How Innovation Throughout the Supply Value Chain Drives Rail’s Sustainable Future

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Rail is set to be an important part of a sustainable mass transportation future. According to one 2022 forecast, the global passenger rail transport market is expected to grow from $227.21 billion in 2021 to $357.84 billion in 2026 at a compound annual growth rate (CAGR) of 9.3%. 

Maintaining this growth while delivering ongoing sustainability and profitability requires every link in the rail supply value chain to contribute. It’s a complex chain encompassing a wide range of input materials and processes across multiple tiers, delivering a hugely diverse set of outputs, from track ballast to power trains to rolling stock.

This blog looks at how innovations in areas such as bonding and electronics are helping to drive rail’s sustainable future, and how Henkel’s capabilities and experience can help suppliers across the value chain deliver a profitable and sustainable future. 

Challenges and Opportunities for the Rail Supply Value Chain

Strong growth in rail transport, along with continuing demand for innovative, sustainable solutions creates opportunities for businesses across the entire rail supply value chain.

Some major global economies such as China and France are continuing their established commitment to rail as a key component of their transportation strategy. Others, such as the USA, are starting to grow investment based on increasing recognition of rail’s sustainability credentials. All of this is good news for any company involved in delivering rail infrastructure, materials, components or rolling stock.

There are challenges too.

Cost pressures continue to be a major factor, particularly in an environment of worldwide economic and social volatility, increasing energy prices and strain on global supply chains. Creating or modernizing rail transport capacity involves significant capital costs, to the extent that this has sometimes been a barrier to investment. The rail supply value chain has a major part to play in driving down these costs.  

Sustainability needs to be embedded in all elements of the value chain, from minimizing the environmental impact of infrastructure, component and rolling stock production, to providing solutions that enable rail operators to deliver a sustainable service.

Delivering an attractive passenger experience is key to the future of rail transportation. Rail can only be a key part of a sustainable transport strategy if enough people use it, so the rail supply value chain needs to keep innovating in areas such as connectivity and cabin comfort to create environments that customers want to travel in.

How Materials Innovation Helps Maximize Opportunities and Overcome Challenges

Rolling stock production is a key element of the rail supply value chain that offers potential to innovate at every stage, to deliver more cost-effective, sustainable, functionally capable outcomes.   

Turning raw materials into parts, assembling parts into components, building components into modules and systems, and modules and systems into finished rolling stock – each of these processes requires materials and parts to be joined, consuming power and other resources.   

Innovation in materials, bonding and production processes can make any part of this value chain more efficient, more sustainable and less costly. These innovations offer new capabilities to improve passenger experience, from reducing the need for space-consuming bracing to imprinting electrical circuits into the fabric of the cabin. 

How Henkel Helps Drive Innovation Through the Rail Supply Value Chain

Henkel is a market leader in bonding and materials technology, focused on continual innovation and collaboration across the value chain to deliver more efficient, cost-effective and sustainable solutions for manufacturing.

Are you looking for ways to reduce weight that increase fuel efficiency? Or are you looking for EHS-friendly alternatives?

We are already delivering for rail supply OEMs and we have a range of solutions that can add value across the rail supply chain.

Connect with our Henkel Experts to discuss opportunities where Henkel can support you achieve your goals.

About the Author

Patric Scheidner

Corporate Vice President Global Head of Aviation, Space, Rail

 

Patric has been serving the chemical industry for more than 25 years.
He has mainly supported customers in Heavy Industries across four continents. His focus has been to develop customer-centric organizations and processes following continuous improvement methods, such as Lean Six Sigma. Being experienced in Supply Chain / Operations as much as Sales he fostered a culture of increasing customer value through the optimized combination of chemistry, process improvements, equipment as well as digital interfaces.

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