In the process of development, railway enterprises in major countries pay more and more attention to profitability and service quality in order to improve their market competitiveness. Railway enterprises of various countries actively expand to relevant value-added services and diversified business while keeping railway transportation at the core.

(1) Improvement of profitability and service quality is the main development goal of common interest
Development goals set out in development strategies of typical foreign railway transportation enterprises mainly include improving profitability, improving service level, paying attention to energy saving and environmental protection, developing into a comprehensive logistics enterprise, boosting social development, and improving safety. The development goals of these typical railway transportation enterprises cover the aspects as shown in the table below.

Table 1 Main Aspects Covered by Development Goals of Typical Foreign Railway Transportation Enterprises

Development

goal

Enterprise

Profitability

Safety

Service

level

Social

development

Energy saving

and environmental protection

Comprehensive logistics enterprise

JR East

√

√

 

√

√

 

Germany's DB

√

 

√

√

√

√

France's SNCF

√

 

√

 

√

√

US's Amtrak

√

√

√

 

 

 

Russia's RZD

√

 

 

 

 

 

Kazakhstan's KTZ

√

 

√

 

 

√

Profitability is an important measure of enterprises' operation level and it is also the source of their sustainable development. The above-mentioned typical railway transportation enterprises all regard improving profitability and enhancing market competitiveness as one of their main development goals. For example, Japan's JR East set out clear revenue and profit goals; Germany's DB strives to become a profitable market leader; France's SNCF makes efforts to reduce costs, integrate in competition and strive to become the champion of quality operation; US's Amtrak put forward the development goal of financial excellence; Russia's RZD recently implemented railway reform in stages, and gradually introduced competition to stimulate its market vitality; Kazakhstan's KTZ set out the goal of increasing its share capital through profitable growth. Based on the impetus of profitability, US's BNSF, Germany's DB and Japan's JR East have all become the most profitable railway enterprises in the world.

Service level showcases the competitiveness of enterprises. In its "future rail" program, Germany's DB set out the core idea to improve the quality of transportation services. France's SNCF makes efforts to become the world's service champion in transportation and logistics; US's Amtrak put forward the passenger-centered strategic goal; Union Pacific (UP) set out the goal of providing the highest service level for customers; Kazakhstan's KTZ requires that the customer-centered policy must be implemented in transportation services.

Typical foreign railway transportation enterprises often voluntarily assume the responsibility of global environmental protection and make contributions to the sustainable development of global environment. Germany's DB strives to become a pioneer of environmental protection. For example, it uses the power generated from renewable energy on long-distance trains including ICEs and the additional cost for this part of power is included in the fare and borne by customers. It takes the lead in the world in the field of energy saving and environmental protection. France's SNCF makes efforts to become the champion of sustainable transportation. Japan's JR East uses energy-saving and environment-friendly rolling stock, strengthens research and development of energy saving and environmental protection projects, and makes contributions to the global environment by various means.

The company's another important goal for development is relying on the core advantages of railway network and working hard to improve the comprehensive logistics service capability. Germany's DB set out the goal of becoming the world's leading transportation and logistics enterprise. France's SNCF set out the goal of becoming a world-class transportation and logistics enterprise. Kazakhstan's KTZ set out the development goal of becoming a comprehensive transportation and logistics company by 2025.

Safety is also an important indicator considered by many enterprises. Japan's JR East regards "extreme safety levels” as its highest goal. US's Amtrak set out the strategic goal of safety.

(2) Keep the transportation at the core and expand to relevant value-added services and diversified business
Typical foreign railway transportation enterprises focus on providing quality and efficient passenger and freight transportation services, and expand their service chain relying on the main business of railway transportation to provide value-added or diversified services. In terms of diversified operation, except Japan, most countries take logistics as the key of operation. Key operation fields of typical foreign railway transportation enterprises are listed in the table below.

Table 2 Key Operation Fields of Typical Foreign Railway Transportation Enterprises

Country

Key operation field

JR East

Take railway transportation, life-style services and Suica as the three mainstay businesses and expand its businesses horizontally (e.g. overseas business)

Germany's DB

Focus on transportation and logistics and strive to become a leading enterprise in the world

France's SNCF

Take passenger transportation, freight and logistics, and infrastructure as the three main businesses and strive to become a leading enterprise of freight and logistics in the context of globalized development

US

Amtrak: dedicated to passenger transportation and enterprise development

Class I freight companies: dedicated to the construction of railway networks and freight multi-modal transportation corridors

Russia's RZD

Take transportation and logistics, passenger transportation and services, infrastructure, international engineering and transportation construction, and social services as the five key sectors

Kazakhstan's KTZ

Focus on the development of railway freight transportation and strive to become a comprehensive transportation and logistics company

Japan's JR East takes transportation services, life-style services (in 18 fields) and Suica (a prepaid e-money card for moving around and shopping) as its three mainstay businesses. Suica has become the leading e-money in Japan. Germany's DB Schenker has integrated logistics giants such as Stinnes and Bax Global and has become a world leading transportation and logistics enterprise capable of providing comprehensive logistics services such as freight forwarding, integrated logistics services and supply chain management solutions. France's SNCF takes passenger transportation, freight and logistics, and infrastructure as the three main businesses and strives to become a leading enterprise of freight and logistics in the context of globalized development. Russia's RZD takes transportation and logistics, passenger transportation and services, infrastructure, international engineering and transportation construction, and social services as the five key sectors. Kazakhstan’s KTZ focuses on the development of railway freight transportation and strives to become a comprehensive transportation and logistics company.