Rail Freight Transport in Australia: Market Research Report

Market Research • Market Size • Industry Statistics • Industry Analysis • Industry Trends

Rail Freight Transport Market Research Report | ANZSIC I4710 | Feb 2016

On the right track: Steady mining demand for bulk freight transport boosts industry revenue

IBISWorld’s Rail Freight Transport market research report offers insightful industry analysis and research into the market at the national level. IBISWorld’s in-depth industry market research is presented in a logical and consistent format. The industry report contains key industry statistics, market size, industry trends, and growth and profit forecasts for a 5-year outlook period.

Report Snapshot
Market Share of Companies
Industry Statistics & Market Size
Annual Growth 11-16
Annual Growth 16-21
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Industry Analysis & Industry Trends

The Rail Freight Transport industry has expanded over the past five years due to increased downstream demand from miners, as coal and iron ore export volumes have risen. Industry profitability is strongest when heavy commodities are carried over long distances, as long-distance travel presents rail transport with a strong advantage in economies of scale and fuel efficiency. The bulk freight segment has strengthened over the past five years, as the Mining division shifted from a boom in prices (and investment) to a boom in output. Industry revenue is forecast to rise at a compound annual rate of 4.0% over the five years through 2015-16, to reach $8.1 billion. A substantial fall in the world price of iron ore in 2014-15 is projected to slow industry growth to 2.4% in 2015-16... purchase to read more

Industry Report - Industry Investment Chapter

Capital costs for the industry are high, due to the specific plant and equipment used by rail freight operators. IBISWorld estimates that the industry invests $0.57 in capital for every dollar spent on wages. Capital assets, including locomotives and wagons, have very large initial costs, but also long useful lives. Labour costs are more variable than capital costs and can be reduced by investing in automation, which increases capital costs.

The industry's capital intensity has increased slightly over the past five years. Depreciation has grown due to increased investment by rail freight operators in new rolling stock to meet demand... purchase to read more


Industry ProductsRelated ReportsTable of Contents

What is the Rail Freight Transport Industry?

Companies in the industry primarily operate railways for freight transportation. The industry does not include the operation of rail freight terminals or private railroads operated in-house for the transportation of goods.

Industry Products
Bulk freight transportNon-bulk freight transport
Industry Activities
Bulk rail freight transportationNon-bulk rail freight transportation

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