Industry Analysis & Industry Trends
The popularity of passenger rail has resurged over the past decade, with patronage reaching record levels in many cities and benefiting the Rail Passenger Transport industry. Several factors have driven growing patronage, 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 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 2016-17, to reach $9.2 billion. The industry is expected to continue expanding in the current year, with forecast revenue growth of 3.5% in 2016-17... 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