Is the Rail Industry on Track to Meet its Sustainable Future?

Changes in Demand

The pandemic has not only had a devastating impact on lives, but it has also had a substantial impact on the way we work, travel, and conduct business on a daily basis. With more people working from home and less business travel, companies in the transport sector must now look at new ways to replace the loss of rail and bus ticket sales. Leaner and more efficient transport systems and services will be required to reduce operational costs, and investment in greener transportation options will be needed to gain market share and appeal to consumers and businesses. As transport services transform to meet new expectations and demands, companies will need to instill more agile and flexibility into management systems and operations to adapt and gain a competitive advantage. As well as the need for updating health and safety programmes to align with operational changes made, leadership and management will need to gain the skills and knowledge to achieve the resilience required to become more sustainable. Greener and best-in-class operational systems will be a game-changer in attracting the talent needed for modern and forward-thinking companies in the transport sector.

Higher Expectations

Even before the pandemic, the expectations of transport users had risen to expect higher standards. Safety, punctuality, and customer service are often cited as the three most consistent rail and bus service complaints. With consumers being given the ability to work closer to home, transport providers have to be competitive in comparison to other transport choices and demonstrate excellence in safety, punctuality, and customer service to meet higher consumer expectations. Company culture now has to move from providing a transport service where consumers have little choice to a culture that consumers choose to use. Operations management will need to be baked into the culture so it becomes part of a company’s DNA and not a separate function. The ongoing digitalisation of services to achieve operational excellence through more efficient system management and customised communication with passengers will help provide a solid platform to meet higher user expectations.

Growing risk profile

As companies in the transport sector look to differentiate themselves from other transportation modes to gain market share, the ability to innovate will be vital. Integrating new technologies and services will change the company's risk profile, requiring leaders down to the shop floor to manage operational risks effectively. Empowering teams to continuously recognise, prioritise, assess, address, and report will help mitigate risk. Strengthening the culture through engagement and continuous learning, as well as focusing on the difference between actions and sustainable outcomes will build the levels of resilience needed to manage risk during periods of change.

Increased competition for capital and market access

The European Green Deal places the focus on investing in sustainable companies giving access to capital that helps propel sustainable business processes and management protocols forward. Put simply, organisations and companies in the transport sector that can demonstrate sustainable operations will have the edge on companies that don’t when it comes to attracting investment. Sustainable practices in health, safety, and operational excellence, alongside state-of-the-art technology that reduces carbon footprints, will help keep companies at the forefront of investors’ minds as the move to a green deal landscape gathers pace. In addition, operational performance is now needed to achieve a competitive advantage and gain market access. Safety performance excellence will help demonstrate that transport companies walk the talk; a safe working environment evidences the ability to manage passengers.