Industry Analysis & Industry Trends
The Rail Freight Transport industry has expanded over the past five years due to increased downstream demand from miners as coal and iron ore export volumes have risen. Industry profitability is strongest when heavy commodities are carried over long distances. Long-distance travel presents rail transport with a strong advantage in economies of scale and fuel efficiency. The bulk freight segment has strengthened over the past five years, as the Mining division increased output to offset declining prices for mined products and falls in investment. Industry revenue is forecast to rise at an annualised 2.1% over the five years through 2016-17, to reach $8.0 billion... purchase to read more
Industry Report - Starting a New Business Chapter
The main barriers to entry in the industry involve capital requirements, staffing, regulation and track access. New entrants need funding to buy or lease expensive equipment, to purchase access to rail networks and attract appropriately skilled staff. The substantial cost of rolling stock and the difficulty in attracting suitable staff are compounded by the substantial economies of scale involved in the industry. To maximise profitability, operators need to also maximise services, given the substantial rail access fees. This in turn increases the equipment and trained staff requirements.
Legislative compliance also remains high. Route accreditation is required before track owners offer train paths... purchase to read more