1 McKinsey Center for Future Mobility research, 2021.įurthermore, several regions are focusing on modernizing rail infrastructure and decarbonizing transport. Over the next ten years, given new mobility offerings, car modal share for short to medium distances is expected to decrease by between 20 and 70 percent, with variations across regions-freeing up modal share that could be captured by rail.
For instance, consumers have become more environmentally conscious and rail offers a more sustainable option than traveling by car or plane.
Doing so could meet consumer expectations and help governments and countries around the world to achieve sustainability goals. As the pandemic-related restrictions were lifted, operators put measures in place to restore rail services and adjust their offerings to suit customer’s changing needs, which aided recovery-although passenger rail traffic had not fully recovered at the beginning of 2022 when the research for the report took place, particularly in North America and Western Europe.Įven as the rail industry works to overcome the effects of the pandemic, several trends indicate that operators could not only restore passenger numbers to pre-COVID-19 levels, but increase rail’s modal share. A new report, Boosting passenger preference for rail, by the International Union of Railways (UIC) in a partnership with McKinsey & Company, found that depending on the region, passenger numbers declined by between 40 and 100 percent, with a global average of around 70 percent. Passenger rail was significantly affected, as at the onset of the pandemic operators had to contend with a sudden, steep drop in ridership. COVID-19 had a profound impact on people and industries across the world, with lasting changes to the way many people work and travel.
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