Industry Analysis & Industry Trends
Infrastructure investment has fuelled the growth of 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 projected 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 - Starting a New Business Chapter
The main barriers to entry in the industry involve capital requirements, staffing, regulation and access. New entrants need funding to buy or lease expensive equipment, to purchase access to rail networks and attract appropriately skilled staff. The substantial cost of rolling stock and the difficulty in attracting suitable staff are compounded by the substantial economies of scale involved in the industry. In order to maximise profitability, operators need to also maximise services, given the substantial rail access fees. This in turn increases the requirement for further equipment and trained staff. Legislative compliance also remains high. Route accreditation is required before track owners offer train paths... purchase to read more