Industry Analysis & Industry Trends
The Rail Freight Transport industry has grown strongly over the past five years, driven by increased downstream demand from mining as exports of coal and iron ore have risen. Industry profitability is strongest when heavy commodities are carried over long distances, as this leverages the economies of scale and fuel efficiency of rail transport. Over the past five years, the bulk freight segment has strengthened, as the mining sector shifted from a boom in prices to a boom in output. Industry revenue is therefore forecast to rise at a compound annual rate of 4.4% over the five years through 2015-16, to reach $8.2 billion. A substantial fall in the world price of iron ore in 2014-15 is projected to slow industry growth to 2.9% in 2015-16... purchase to read more
Industry Report - Industry SWOT Analysis Chapter
The industry is currently in the growth phase of its economic life cycle. The separation of rail-track infrastructure (below rail) and the provision of rail services (above rail) has opened the industry up to increased competition and encouraged growth. This has helped the industry transition from a mature phase to a growth phase of its life cycle. The general policy direction has been towards establishing rail corporations and privatisation to introduce commercial pressures. The successful privatisation of National Rail Corporation in 2002 and the freight operations of QR Limited in 2009 highlight the changing nature of ownership in the industry.
Industry value added (IVA) measures an industry's contribution to the overall economy... purchase to read more