As a modern transportation mode, railway has the characteristics of large transportation capacity, fast transportation speed, long transportation distance, low cost and little influence by climate. Coupled with China's national conditions and national strength, railway transportation is an ideal mode of transportation in China and has been playing an important role in the development of national economy. This paper focuses on the analysis of the main advantages and disadvantages of railway in developing modern logistics business, and puts forward the development countermeasures that railway should adopt in developing modern logistics business under the new situation of implementing leap-forward development strategy. Starting from the concept of the third-party logistics, and based on the present situation of railway freight transportation, this paper probes into the advantages of developing railway freight transportation to the third-party logistics.