transport services market
Transportation Services

China National Railway Group And The UPS Are Market Leaders For Transport Services

The global transport services market is highly fragmented, with a large number of small players making up around 91% of the total share. The top ten competitors in the market made up to 8.8% of the total market in 2018. This fragmentation can be attributed to the presence of a large number of regional players who cater to the local population, and less barriers to entry in the market. China National Railway Group Co., Ltd. was the largest competitor with 1.59% of the market, followed by United Parcel Service, Inc. (UPS) with 1.08% in 2018. Other major players include United States Postal Service, Deutsche Post DHL Group, FedEx Corporation, Deutsche Bahn AG, Delta Air Lines, Inc., Lufthansa Group, United Continental Holdings, Inc., and Russian Railways.

transport services

China National Railway Group Co., Ltd. was the largest competitor in the global transport services market in 2018. China National Railway is a state-owned company, which provides railway passenger and freight transport services, and railway network construction services. The company was incorporated in 2013 and is headquartered in Beijing, China.

China National Railway Group’s growth strategy aims at expanding its high-speed rail network through increasing investments. In April 2019, the company planned to invest CNY 850 billion ($125 billion) for the construction of new high-speed railway lines. In December 2018, China National Railway Group awarded a $453 million contract to Bombardier Sifang (Qingdao) Transportation Ltd. to supply Chinese standard high-speed train cars to improve its transportation business.

FedEx, which is another major player in the transport services market, adopted a similar strategy of expansion through investments to match the increase in e-commerce shipments. In March 2018, the company acquired an e-commerce transportation solutions provider, P2P Mailing Limited, for GBP 92 million ($135 million), to expand its portfolio of offerings for the rapidly growing global e-commerce. In 2016, FedEx invested $1.6 billion for network expansion.

United Parcel Service, Inc. was the second largest competitor in the transport services market in 2018. United Parcel Service is a logistics company which offers package delivery and supply chain management services globally. The company offers logistics services to the global market, which include transportation, distribution, forwarding, ground, ocean and air freight, brokerage and financing. The company was established in 1907 and is headquartered in Sandy Springs, Georgia, United States.

United Parcel Service, Inc.’s growth strategy is focused on expanding its global network and service operations. In 2018, the company expanded Saturday operations and opened 22 new facilities, including regional facilities in Atlanta, Indianapolis, Phoenix, Salt Lake City, and Dallas. In the same year, the company expanded UPS WorldWide Express, which offers guaranteed delivery in 1-3 business days’ service, to 14 new countries around the globe.

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