Training up: Growth in merchandise trade and freight volumes is on track to boost revenue

The Rail Transport industry has struggled over the past five years. Industry revenue is expected to decline at an annualised 7.1% over the five years through 2019-20, to $436.1 million. New Zealand's total merchandise trade has risen over the period, driving increases in freight volumes. Rail freight plays an important role in transporting bulk goods across the country, with importers and exporters representing the industry's largest downstream market. Customers in these segments are increasingly using rail freight to transport goods to and from New Zealand ports. However, the industry currently lacks the capacity to account for a larger share of the country's freight more.

Industry Statistics & Market Size
Annual Growth 15-20
Forecast Growth 20-25

Industry Threats & Opportunities

  • The industry lacks the capacity to achieve significant growth, despite rising freight volumes
  • The 2016 Kaikoura earthquake caused significant damage to KiwiRail’s network
  • Rising fuel prices are anticipated to negatively affect industry profit margins
  • Industry Report - Starting a New Business Chapter

    The Rail Transport industry is characterised by high barriers to entry, which have remained steady over the past five years. The rail network is owned by the New Zealand Government through KiwiRail. KiwiRail is the only commercial rail freight operator in the industry. Rail passenger operations only occur in the Wellington and Auckland regions, with government entities (Greater Wellington Regional Council and Auckland Council) responsible for their operation. Other organisations can apply for a licence from the NZ Transport Agency to use the rail network to offer scenic railway experiences, transport goods on a non-commercial scale, and for other non-industry related activities. However, these organisations are not included in the industry...purchase to read more.

    Additional Insights for the Rail Transport Industry

    IBISWorld has determined the most important Key Success Factors for the Rail Transport are:

  • Automation - reduces costs, particularly those associated with labour
  • Well developed internal processes
  • Production of premium goods/services
  • IBISWorld analysts also discuss how external factors such as Total merchandise imports and exports and Road freight service price in the Rail Transport industry impact industry performance..

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    What's in this report

    What is the Rail Transport in New Zealand Industry?

    Operators in the Rail Transport industry provide freight and passenger rail transport. This excludes railway terminal operation, tramway transport and private railroads used internally by companies.

    Industry Products
  • Other freight transport
  • Import and export freight transport
  • Rail passenger transport
  • Industry Activities
  • Passenger railway transport services
  • Bulk rail freight transportation
  • Monorail operation
  • Non-bulk rail freight transportation
  • Table of Contents

    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources
    Industry Statistics Snapshot
    Industry Structure
    Executive Summary
    Executive Summary
    Key External Drivers
  • Total merchandise imports and exports
  • Road freight service price
  • World price of crude oil
  • Population

  • Current Performance
  • Rail freight
  • Passenger rail
  • Industry structure
  • Profit
  • Competition
  • Chart: Revenue Growth

  • Industry Outlook
  • Rail freight
  • Passenger rail
  • Industry profit
  • Industry structure
  • Table: Rail Transport Industry Revenue Outlook

  • Industry Life Cycle
  • Life cycle reasons
  • Chart: Benchmarking - Rail Transport Industry Lifecycle vs The Economy

  • Supply Chains
    Key Buying Industries
  • Grain Growing in New Zealand
  • Meat Processing in New Zealand
  • Milk and Cream Processing in New Zealand
  • Coal Mining in New Zealand
  • Consumers in New Zealand

  • Key Selling Industries
  • Electricity Retailing in New Zealand
  • Heavy Industry and Other Non-Building Construction in New Zealand

  • Products & Services
  • Other freight transport
  • Import and export freight transport
  • Rail passenger transport
  • Chart: Rail Transport Industry Products and Services Segmentation

  • Demand Determinants
  • Freight transport
  • Rail passenger transport

  • Major Markets
  • Importers and exporters of goods
  • Primary producers
  • Other freight customers
  • Consumers
  • Chart: Major Market Segmentation for the Rail Transport Industry

  • International Trade
    Business Locations
    Chart: Business Locations by State
    Market Share Concentration
    Key Success Factors
    Cost Structure Benchmarks
  • Chart: Cost Structure Benchmarking – Sector vs Rail Transport

  • Basis of Competition
  • Internal competition
  • External competition

  • Barriers to Entry
  • Table: Barrier to Entry Checklist for the Rail Transport Industry

  • Industry Globalization
    KiwiRail Holdings Limited, Greater Wellington Regional Council, Auckland Council,
  • Table: KiwiRail Holdings Limited - financial performance
  • Table: Greater Wellington Regional Council - financial performance
  • Table: Auckland Council - financial performance

  • Capital Intensity
  • Chart: Level of Capital Intensity for the Rail Transport Industry
  • Chart: Tools of the Trade: Growth Strategies for Success

  • Technology & Systems
    Revenue Volatility
  • Chart: Volatility vs Industry Growth

  • Regulation & Policy
    Industry Assistance
    Table: Industry Data for the Rail Transport Industry
  • Industry Revenue (2011-2025)
  • Industry Gross Product (2011-2025)
  • Establishments (2011-2025)
  • Businesses (2011-2025)
  • Employment (2011-2025)
  • Wages (2011-2025)
  • Wages (2011-2025)
  • Purchases (2011-2025)
  • Profit (2011-2025)
  • Depreciation (2011-2025)
  • Rent (2011-2025)
  • Utilities (2011-2025)
  • Other (2011-2025)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
    Bulk Freight
  • Bulk goods, such as grain or coal, which are transported in custom vehicles.
  • Commuter Rail
  • A railway that extends from a central location (generally city CBDs) to outer suburban areas.
  • Rolling Stock
  • Railway vehicles such as locomotives and carriages.
  • What Our Customers Say

    Why buy this report?

    The Rail Transport in New Zealand market research report provides key industry analysis and industry statistics, measures market size, analyzes current and future industry trends and shows market share for the industry’s largest companies. IBISWorld publishes the largest collection of industry reports so you can see an industry’s supply chain, economic drivers and key buyers and markets.

    IBISWorld industry market research reports enable you to:
    • Find out about key industry trends
    • Identify threats and opportunities
    • Inform your decisions for marketing, strategy and planning
    • Quickly build competitive intelligence
    This report on Rail Transport in New Zealand:
    • Provides Market Size information to assist with planning and strategic decisions.
    • Includes the necessary information to perform SWOT, PEST and STEER analysis.
    • Helps you understand market dynamics to give you a deeper understanding of industry competition and the supply chain.
    • Analyses key performance and operational metrics so that you can benchmark against your own business, that of your customers’ businesses, or your competitors’ businesses.
    The Rail Transport in New Zealand market research report includes:
    • Historical data and analysis for the key drivers of this industry
    • A five-year forecast of the market and noted trends
    • Detailed research and segmentation for the main products and markets
    • An assessment of the competitive landscape and market shares for major companies
    • And of course, much more

    IBISWorld reports on thousands of industries around the world. Our clients rely on our information and data to stay up-to-date on industry trends across all industries. With this IBISWorld Industry Research Report on Rail Transport in New Zealand, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

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