Industry Analysis & Industry Trends
The Railway Track Construction industry has had mixed results since the late 2000s, picking up steam on the back of resource developments, before plummeting in recent years with the winding back of private and public rail investment. The industry builds three kinds of rail networks and these transport passengers, intermodal freight and mining output. Construction of intermodal freight and passenger networks relies on government funding, and expansion plans are developed to meet long-term objectives. Governments are heavily involved in downstream industries as both owners and operators of track... purchase to read more
Industry Report - Industry Investment Chapter
The Railway Track Construction industry has a low level of capital intensity. The industry has a substantial requirement for large-scale machinery and heavy earthmoving and lifting equipment, however, much of this is supplied under rental or lease arrangements (dry hire), or through the supply of equipment with operators (wet hire).
The industry currently incurs wage costs of an estimated 20.1% of industry revenue and depreciation charges of 2.2% of revenue. This indicates the industry allocates $9.14 in labour expenses for every dollar spent on capital inputs to construction. This is higher than the capital intensity of the general economy and broadly consistent with the Construction division... purchase to read more