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 - Industry Investment Chapter
The industry is considered to have a medium level of capital intensity. This is due to the large investments required in infrastructure, equipment and train stations. The dedicated and inflexible rolling stock used in railway operations contributes to the high capital costs associated with entry to the industry. IBISWorld estimates that the industry invests $0.13 in capital for every dollar spent on wages.
Outsourcing the ownership of rail tracks to independent managers reduces the capital costs associated with rail tracks in the interstate corridor, although this will increase access fees payable. In urban rail networks, ownership of the rails is usually separated from the service provider... purchase to read more