This Transport Note has been prepared asan adjunct to the 2006-07 updating of the World Bank'sRailways Databases. It uses the databases for inferences onaggregate trends as well as other Bank documents and sourcesof policy information. It provides a high level view oftraffic and policy developments. Particular emphasis isgiven to the Bank's six regions of operations at a timewhen the Bank's Transport Strategy is being updatedwith the intention of increasing the attention given to therole of railways in development. For completeness, importantpolicy developments in the higher income countries are alsosummarized. The Note has been prepared by Paul Amos,Transport Adviser to the World Bank and Lou Thompson,Railway Consultant, and formerly Railways Adviser to theWorld Bank. While the content has drawn upon the broadexperience and expertise of the Bank in the railway sector,any views expressed herein are strictly those of the authors.