On track: Major construction projects should boost industry revenue in the current year

The Railway Track Construction industry has had mixed results since the late 2000s. The industry grew strongly on the back of resource developments, before plummeting due to the winding back of private and public rail investment. The industry builds three kinds of rail networks, which transport passengers, intermodal freight and mining output. Construction of intermodal freight and passenger networks relies on government funding, and expansion plans are developed by government authorities to meet long-term objectives. Governments are heavily involved in downstream industries as both owners and operators of track, although the industry is currently shifting towards private equity involvement to fund and operate public rail projects...read more.

Industry Statistics & Market Size
Annual Growth 13-18
Forecast Growth 18-23

Industry Threats & Opportunities

  • Major railway construction projects in Melbourne and Sydney have boosted the industry's performance
  • Profit margins have declined due to a falling Australian dollar and higher input prices
  • Work on mining railway networks is expected to stagnate over the next five years
  • Industry Report - Industry SWOT Analysis Chapter

    The industry is in the decline stage of its life cycle, reflecting the substantial installed capacity on existing rail networks and the long effective life of these assets. Industry value added, which measures the industry's contribution to the overall economy, is forecast to decline at an annualised 3.0% over the 10 years through 2022-23. This represents an underperformance of the wider economy, which is expected to grow at an annualised 2.5% over the same period, as measured by Real GDP growth.The industry heavily relies on government funding for rail projects and this growth is principally determined by the supply of funds rather than demand for services. The...purchase to read more.

    Additional Insights for the Railway Track Construction Industry

    IBISWorld identifies 250 Key Success Factors for a business.The most important for the Railway Track Construction Industry are

  • Ability to change markets
  • Having a network of suppliers
  • Access to highly skilled workforce
  • IBISWorld analysts also discuss how external factors such as Demand from rail passenger transport and Capital expenditure by the public sector in the Railway Track Construction industry impact industry performance..

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    What's in this report

    What is the Railway Track Construction Industry?

    Industry businesses construct railway tracks, with contractors specifically engaging in new work, reconstruction and repairs. The industry includes construction management firms and special trade contractors that construct railway tracks and transit systems.

    Industry Products
  • Tracklaying and construction
  • Overhead line construction
  • Platform construction
  • Tunnelling
  • Industry Activities
  • Tracklaying and construction
  • Overhead powerline and signal construction
  • Platform construction
  • Tramway construction
  • Tunnelling
  • Table of Contents

    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources
    Industry Statistics Snapshot
    Industry Structure
    Executive Summary
    Executive Summary
    Key External Drivers
  • Demand from rail passenger transport
  • Capital expenditure by the public sector
  • Demand from rail freight transport
  • Total mass of exports by sea
  • Actual capital expenditure on mining
  • Domestic price of iron and steel

  • Current Performance
  • Profitability tightens
  • Mining investment
  • Government spending
  • Rail regulation
  • Chart: Revenue Growth

  • Industry Outlook
  • Profit and jobs growth
  • Project pipeline
  • Table: Railway Track Construction Industry Revenue Outlook

  • Industry Life Cycle
  • Life cycle reasons
  • Chart: Benchmarking - Railway Track Construction Industry Lifecycle vs The Economy

  • Supply Chains
    Key Buying Industries
  • Mining
  • Rail Freight Transport
  • Rail Passenger Transport

  • Key Selling Industries
  • Construction Machinery and Operator Hire
  • Gravel and Sand Quarrying
  • Machinery and Scaffolding Rental
  • Mining and Construction Machinery Manufacturing
  • Structural Steel Fabricating

  • Products & Services
  • Tracklaying and construction
  • Tunnelling
  • Platform construction
  • Overhead line construction
  • Chart: Railway Track Construction Industry Products and Services Segmentation

  • Demand Determinants
    Major Markets
  • Private sector
  • State and territory governments
  • Federal Government
  • Chart: Major Market Segmentation for the Railway Track Construction Industry

  • International Trade
    Business Locations
    Chart: Business Locations by State
    Market Share Concentration
    Key Success Factors
    Cost Structure Benchmarks
  • Profit
  • Purchases
  • Subcontracted labour
  • Wages
  • Equipment hire and lease
  • Depreciation
  • Other
  • Chart: Cost Structure Benchmarking – Sector vs Railway Track Construction

  • Basis of Competition
  • Internal
  • External

  • Barriers to Entry
  • Table: Barrier to Entry Checklist for the Railway Track Construction Industry

  • Industry Globalization
    CIMIC Group Limited, CCCI Australia Pty Ltd,
  • Table: CIMIC Group Limited - financial performance
  • Table: CCCI Australia Pty Ltd - financial performance

  • Capital Intensity
  • Chart: Level of Capital Intensity for the Railway Track Construction 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 Railway Track Construction Industry
  • Industry Revenue (2009-2023)
  • Industry Gross Product (2009-2023)
  • Establishments (2009-2023)
  • Businesses (2009-2023)
  • Employment (2009-2023)
  • Wages (2009-2023)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
    Non-Bulk Freight
  • Goods transported unpacked in large quantities, predominately mineral and agricultural products.
  • Bulk Freight
  • Goods transported unpacked in large quantities, predominately mineral and agricultural products.
  • Dry Hire
  • The hire of plant and equipment without an operator.
  • Intermodal Transport
  • The transport of goods in standard containers between rail, water and road freight service providers.
  • Wet Hire
  • The hire of plant and equipment with a qualified operator.
  • What Our Customers Say

    Why buy this report?

    IBISWorld’s Railway Track Construction market research report offers insightful industry analysis and research into the market at the national level. IBISWorld’s in-depth industry market research is presented in a logical and consistent format. The industry report contains key industry statistics, market size, industry trends, and growth and profit forecasts for a 5-year outlook period.

    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 Railway Track Construction:
    • 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 Railway Track Construction 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 Railway Track Construction, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

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