Troubled waters: The downturn in new mining projects has sunk industry revenue

The Dredging Services industry's performance has slumped since its peak in 2013-14, largely due to significant falls in capital expenditure across the mining sector over the past five years. Prior to this, industry revenue had surged due to strong mining activity and high general export growth, which required port expansions to accommodate larger shipping fleets. In particular, the industry's expansion was driven by strong demand from the Western Basin LNG project in Gladstone, QLD, and the Ichthys LNG Project in Darwin, which both required extensive dredging services. Several other major ports in Queensland and Western Australia were also expanded to cater for increased ship sizes, and greater natural gas and mineral ore volumes...read more.

Industry Statistics & Market Size
Revenue
$280m
Annual Growth 14-19
-32.4%
Forecast Growth 19-24
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Profit
x.x%lock
Employment
830
Businesses
53
Market Share of Companies

Industry Threats & Opportunities

  • Industry revenue has slumped due to the completion of several major dredging projects
  • High capital requirements mean that few new firms are able to enter the industry
  • Industry demand is forecast to increase due to some port expansions and maintenance projects

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    Industry Report - Industry Investment Chapter

    The industry is characterised by a medium level of capital intensity due to the extensive capital requirements of dredging firms. These companies are required to invest significant capital in dredging fleets, dredging equipment, pumps, other equipment and computer systems. However, as the number of new dredging projects dropped significantly in 2014-15, and remained low over subsequent years, investment in new capital equipment slumped in absolute terms, and fell moderately as a proportion of revenue. These trends are likely to remain in place over the five years through 2023-24.For every dollar required for labour inputs, approximately $0.23 is expected to be invested in dredging vessels and equipment during 2018-19. Cap...purchase to read more.

    Additional Insights for the Dredging Services Industry

    IBISWorld has determined the most important Key Success Factors for the Dredging Services are:

  • Ability to accommodate environmental requirements
  • Ability to compete on tender
  • Ability to expand and curtail operations rapidly in line with market demand

    • IBISWorld analysts also discuss how external factors such as Actual capital expenditure on mining and Demand from water transport support services in the Dredging Services industry impact industry performance..

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    What's in this report

    Industry Products

    What is the Dredging Services Industry?

    Industry companies provide sea, ocean and river dredging services, which include deepening and widening existing port operations and moving deepwater sediment to keep waterways open for commerce.

    Industry Products
  • Capital dredging services
  • Maintenance dredging services
  • Energy dredging services
  • Other dredging services
    • Industry Activities
  • Capital dredging services
  • Maintenance dredging services
  • River and coastal dredging services
  • Other dredging services
    • Table of Contents

    About this Industry

    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources

    Industry at a Glance

    Industry Statistics Snapshot
    Industry Structure
    Executive Summary

    Industry Performance

    Executive Summary
    Key External Drivers
  • Actual capital expenditure on mining
  • Demand from water transport support services
  • Total mass of exports by sea
  • World price of natural gas
  • Capital expenditure by state and local government
  • Public concerns over environmental issues

    • Current Performance
  • Revenue and profit
  • Dredging demand
  • Industry concentration
  • Industry structure
  • Chart: Revenue Growth

    • Industry Outlook
  • A return to growth
  • Enterprises and employment
  • Industry opportunities
  • Table: Dredging Services Industry Revenue Outlook

    • Industry Life Cycle
  • Life cycle reasons
  • Chart: Benchmarking - Dredging Services Industry Lifecycle vs The Economy

    • Products & Markets

    Supply Chains
    Key Buying Industries
  • Mining
  • Oil and Gas Extraction
  • Water Transport Terminals
  • Port Operators

    • Key Selling Industries
  • Mining and Industrial Machinery Wholesaling
  • Pump and Compressor Manufacturing
  • Shipbuilding and Repair Services

    • Products & Services
  • Maintenance dredging services
  • Capital dredging services
  • Other dredging services
  • Energy dredging services
  • Chart: Dredging Services Industry Products and Services Segmentation

    • Demand Determinants
    Major Markets
  • Local authorities
  • Port operators
  • Mining division
  • Energy companies
  • Other industries and sectors
  • Chart: Major Market Segmentation for the Dredging Services Industry

    • International Trade
    Business Locations
    Chart: Business Locations by State

    Competitive Landscape

    Market Share Concentration
    Key Success Factors
    Cost Structure Benchmarks
  • Chart: Cost Structure Benchmarking – Sector vs Dredging Services

    • Basis of Competition
  • Internal competition
  • External competition

    • Barriers to Entry
  • Table: Barrier to Entry Checklist for the Dredging Services Industry

    • Industry Globalization

    Major Companies

    Jan De Nul (Australia) Pty Ltd, Boskalis Australia Pty Limited, Van Oord Australia Pty Ltd, Dredging International (Australia) Pty Limited,
  • Table: Jan De Nul (Australia) Pty Ltd - financial performance
  • Table: Boskalis Australia Pty Limited - financial performance
  • Table: Van Oord Australia Pty Ltd - financial performance
  • Table: Dredging International (Australia) Pty Limited - financial performance

    • Operating Conditions

    Capital Intensity
  • Chart: Level of Capital Intensity for the Dredging Services Industry
  • Chart: Tools of the Trade: Growth Strategies for Success

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

    • Regulation & Policy
    Industry Assistance

    Key Statistics

    Table: Industry Data for the Dredging Services Industry
    Includes:
  • Industry Revenue (2010-2024)
  • Industry Gross Product (2010-2024)
  • Establishments (2010-2024)
  • Businesses (2010-2024)
  • Employment (2010-2024)
  • Wages (2010-2024)

    • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data

    Jargon & Glossary

    Capital Dredging
  • Dredging undertaken to deepen shallow waters to enable ships to access wharves and other infrastructure.
    • Maintenance Dredging
  • The periodic removal of sediments that naturally build up from waves or from rivers into port channels.
    • Mine Tailings
  • Waste products remaining after mined ore is separated from other materials. These tailings that have been disposed of in dams may require dredging and further disposal.
    • What Our Customers Say
    Why buy this report?

    IBISWorld’s Dredging Services market research report is a comprehensive guide to market size and growth prospects. Our industry reports offer strategic industry analysis of the factors influencing companies, including new product developments, economic, lifestyle and demographic influences, distribution and supply chain factors and pricing issues. Full analysis accompanies our data forecasts to illustrate how the market responds to emerging industry trends.

    IBISWorld industry market research reports enable you to:
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    This report on Dredging Services:
    • 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 Dredging Services 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 Dredging Services, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

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