Challenges in Adopting Digital Technologies in Rail Freight Transportation

Abstract

Digitalization is reshaping freight transportation by enabling more intelligent, connected, and data-driven logistics systems While maritime, air, and road freight have made significant progress through different applications; rail freight transportation remains at a comparatively early stage of digital maturity. Despite its environmental advantages, rail freight faces limited adoption of digital technologies due to insufficient sensing and communication infrastructure, fragmented initiatives, and a lack of system-wide integration. This study aims to reveal and examine the challenges in adopting digital technologies in rail freight transportation and to analyze their interrelationships and relative importance. These challenges are categorized under technological, organizational and regulatory and market challenges. The evaluation is conducted by employing the Graph Theory Matrix Approach (GTMA). Results showed that digitalization adoption in rail freight transportation is mainly constrained by challenges in managing organizational change, coordinating multiple stakeholders, and addressing data and security risks. The main contribution of this study is analyzing digital technology adoption challenges in rail freight as an interconnected system rather than separate barriers, providing a holistic basis for effective digital transformation strategies.