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 2013-14, industry revenue is expected to have grown at a compound annual rate of 3.8%. Increased demand has resulted in growth in revenue from ticket sales, and additional subsidies and grants from governments to allow operators to meet demand. Industry revenue is expected to reach $8.4 billion in 2013-14, an increase of 0.7% on 2012-13.
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 jams... purchase to read more
Industry Report - Industry Investment Chapter
The industry is considered to have a high level of capital to labour requirement. This is due to very large investments required in infrastructure, equipment and train stations. The dedicated and inflexible rolling stock associated with railway operations contributes to the high capital costs associated with entry to the market. In 2013-14, the industry is expected to spend $0.46 on capital for every dollar on labour.
The provision of access to rail tracks by independent managers of rail track infrastructure reduces the capital costs associated with developing and maintaining rail tracks in the interstate corridor. However, significant urban networks are still owned by the service provider... purchase to read more