Industry Analysis & Industry Trends
Structural reform and investment prepared the way for industry prosperity as demand for bulk transport grew. Rail freight transport revenue is expected to increase at a compound annual rate of 4.6% over the five years through 2013-14. This growth has come from downstream demand from the Mining division as Australia has exported increasing volumes of coal, iron ore and other resources. Over the period, industry performance slowed due to a drop-off in intermodal traffic in 2008-09, and floods affecting key markets in 2010-11. In 2013-14, revenue is forecast to grow by 1.7% to $7.3 billion.
Historically, rail has been run by the states, with a primary focus on getting exports to overseas markets, rather than domestic markets... purchase to read more
Industry Report - Starting a New Business Chapter
The three main barriers to entry in the industry revolve around capital, staffing and access. New entrants need funding to buy or lease expensive equipment, to purchase access to rail networks and attract appropriately skilled staff. Legislative compliance also remains high. For example, route accreditation is required before train paths are offered by track owners. The accreditation process is formidable, with requirements including rolling stock safety audits and qualification of operating personnel. The move towards a national safety authority, announced in 2011, should lower these barriers as it is implemented in 2013. Due to these barriers, many logistics companies choose to instead access industry services through freight forwarders... purchase to read more