Is it cheaper to transport by train or truck?

1, Cost composition analysis
Train transportation cost:
The cost of train transportation mainly includes two parts: fixed costs and variable costs. Fixed costs mainly include the construction and maintenance of railway infrastructure, the purchase and depreciation of locomotives and vehicles, personnel salaries and benefits, etc. These costs are relatively stable in the short term and do not fluctuate significantly with changes in transportation volume. Variable costs mainly include fuel consumption, maintenance costs, insurance costs, and other expenses directly related to transportation volume. As the transportation volume increases, the variable cost per unit of goods usually gradually decreases, as fixed costs are shared among more goods.
Truck transportation cost:
The cost of truck transportation also includes fixed and variable costs. Fixed costs mainly include vehicle purchase and depreciation, insurance expenses, road and bridge fees, driver wages and benefits, etc. Unlike train transportation, the fixed cost of truck transportation includes a large proportion of vehicle purchase and depreciation, and due to the large number of vehicles and fast updates, this part of the cost is often higher. Variable costs mainly include fuel consumption, maintenance costs, tolls, and other expenses incurred due to changes in transportation distance and time. Due to the high flexibility of truck transportation, its variable costs are influenced by various factors such as transportation volume, transportation distance, and road conditions.
2, Comparison of Transportation Efficiency and Cost
Transportation efficiency:
Train transportation is known for its large capacity, fast speed, and high efficiency. A train can load hundreds or thousands of tons of goods, and its transportation speed is relatively stable, with little influence from weather and road conditions. In contrast, although truck transportation has strong flexibility, the loading capacity of a single vehicle is limited, and the transportation process is easily affected by factors such as traffic congestion and poor road conditions, resulting in relatively low transportation efficiency.
Cost comparison:
In terms of transportation efficiency, train transportation has obvious advantages, which are directly reflected in the transportation cost per unit of goods. Due to the ability of train transportation to fully utilize the transportation resources of vehicles and routes, achieving large-scale and efficient freight transportation, the transportation cost per unit of goods is usually lower than that of truck transportation. Especially in long-distance and bulk cargo transportation, the cost advantage of train transportation is more significant.
However, it should be noted that in short distance and small batch cargo transportation, truck transportation may be more cost-effective. Due to the high flexibility of truck transportation, which can quickly respond to market demand, and the relatively small allocation of fixed costs in short distance transportation, the transportation cost per unit of goods is relatively low.
3, Other factors to consider
In addition to transportation efficiency and cost, enterprises also need to consider other factors when choosing transportation methods. For example, the nature of the goods, transportation distance, transportation time requirements, environmental protection requirements, etc. For perishable, vulnerable, or urgently needed goods, truck transportation may be more suitable; For bulk, low value, and long-distance transportation of goods, train transportation has more advantages.
In addition, environmental policies are also one of the important factors affecting the choice of transportation mode. With the increasing global emphasis on environmental protection, low-carbon and environmentally friendly transportation methods will be increasingly favored. As a low-carbon and environmentally friendly mode of transportation, train transportation will further highlight its competitive advantages under environmental policies.