Industry Analysis & Industry Trends
Structural reform and infrastructure investment have fuelled the Rail Freight Transport industry as demand for bulk transport has grown. Industry revenue is expected to increase by an annualised 4.0% over the five years through 2014-15. Increased downstream demand from mining has driven this growth, as exports of coal and iron ore have risen. While revenue growth has been generally solid, the flooding of coalmines in Queensland during 2010-11 and falling demand from some mining customers in 2013-14 affected the industry's performance during those years. In 2014-15, revenue is forecast to grow by 2.8% to $7.6 billion.
Historically, state governments have run the industry, with a primary focus on transporting resources to ports for export... purchase to read more
Industry Report - Industry Key Buyers Chapter
The industry has a high level of concentration, with the top four players generating an estimated 87.4% of industry revenue in 2014-15. Demand for bulk haulage of minerals, a market in which the two largest players are particularly active, has increased significantly over the past five years. By contrast, activity in intermodal freight markets has been subdued.
Industry concentration is expected to increase in the next five years as Aurizon Holdings Limited expands its operations, especially in New South Wales, to compete nationally. High cost barriers to entry ensure there are minimal new entrants to compete with the major players. There are considerable economies of scale in the industry, supporting the high level of concentration... purchase to read more