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. Growing patronage has been driven by several factors, including the high cost of petrol – prior to a substantial drop in 2014-15 – and other costs associated with passenger vehicles, such as parking and time spent in traffic. Higher employment in central business districts (CBDs) and strong population growth have also boosted patronage rates. Industry revenue is forecast to grow at a compound annual rate of 3.1% over the five years through 2015-16, to reach $8.8 billion. Lower petrol prices compared with previous years are projected to result in slower growth of 2.1% in 2015-16... 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, which presents a further barrier.
Current operators are provided with substantial grants and levies by the state governments that own the assets that industry firms 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... purchase to read more