Industry Analysis & Industry Trends
The Railway Track Construction industry builds three kinds of rail networks to transport passengers, intermodal freight and mining output. In the past five years, the industry has displayed wide cyclical fluctuation, surging to a record peak in 2011-12 before trending down sharply over the past three years. 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 the downstream industries as both owners and operators of track.
The tipping point for the industry came in the late 2000s, when the Federal Government announced a major package of infrastructure investment to counter the impact of the global financial crisis... purchase to read more
Industry Report - Starting a New Business Chapter
The barriers to entry are high within the industry in 2014-15.
The existing large-scale players have a size and reputation that may deter newcomers. They also have a proven track record and a good understanding of dealing with the public authorities, essential in the tendering process for public contracts.
Establishing new operations requires large amounts capital and access to skilled labour. Experts have to be recruited across several engineering disciplines at once for a firm to gain a distinctive pool of capabilities. Achieving economies of scale in the context of capabilities and expertise is therefore quite expensive. Before the operator is able to secure a contract, it will operate with negative cashflows while competing on tenders... purchase to read more