Industry Analysis & Industry Trends
There has been a resurgence in the popularity of passenger rail over the past decade, with patronage in many cities reaching record levels. Over the five years through 2014-15, revenue for the Rail Passenger Transport industry is expected to grow at a compound annual rate of 2.5%. Increased demand has resulted in ticket sales growth, but the bulk of industry revenue has continued to come from government subsidies and grants. Industry revenue is expected to reach $8.6 billion in 2014-15, representing an increase of 3.5% over the year.
Growing patronage has been driven by several factors, including increases in the cost of petrol and other costs associated with passenger vehicles, such as parking and time spent in traffic... purchase to read more
Industry Report - Starting a New Business Chapter
Railroads require specific and large investment in infrastructure, rolling stock, equipment and systems as well as train stations. This represents a significant barrier to any new operators in the industry. The industry also requires appropriately skilled operating staff, a further barrier.
Current operators are provided with substantial grants and levies by the state governments that own the assets they operate. Without this assistance, operators would be running at considerable losses. Low profitability represents a barrier to entry to any operators that do not have government assistance. Opportunity may exist in joint ventures, where private capital can be used in rolling stock ownership, terminal operations on a contract basis and the provision of communication technology... purchase to read more