Melbourne, Australia (PRWEB) January 24, 2013
As global demand for coal, iron and other resources soars, so does the national freight task and demand for rail freight. Ongoing demand for mining, manufacturing and agriculture is expected to cause this freight task to double by 2020, according to estimates from the Bureau of Infrastructure, Transport and Regional Economics. Over the past five years, revenue for the Rail Freight Transport industry in Australia has grown at an estimated compound annual rate of 2.4%. This growth rate includes strong pre-crisis and recovery revenue, while overall performance was contained by a drop-off in intermodal traffic in 2008-09 and a flood that affected key markets in 2010-11. According to IBISWorld Industry analyst Caroline Finch, ‘in 2012-13, industry revenue is forecast to grow by 5.0% to $8.87 billion’.
Rail freight is an industry with potential for reinvention. The Rail Freight Transport industry in Australia as it stands is dominated by a small number of major players, and there has not been substantial new market penetration over the past five years. Investment in this period has allowed the industry to expand in capacity. Rail freight is most competitive carrying large volumes of bulk goods over long distances. The challenge for the industry lies in increasing competitiveness in non-bulk markets dominated by road freight. ‘This would mean growth in the share of freight carried and overall revenue in the future’, says Finch. In the five years through 2017-18, revenue is expected to grow.
The Rail Freight Transport industry in Australia has a high level of market share concentration. Industry concentration is set to increase as Aurizon Holdings Limited expands its operations to compete nationally, especially in New South Wales. Over the five years through 2017-18, IBISWorld expects the number of mergers and acquisition of transport companies across industry sectors to continue as the sector matures. Operators like Qube Logistics' have already emerged, acting on the docks of ports and at landside freight terminals as well as providing intermodal freight. As the barriers to entry for rail ease, players from other industries are looking more seriously at adding rail to their portfolio of services or expanding their networks interstate. Operators such as Qube Logistics and SCT Logistics have been able to enter markets by subcontracting above rail functions. The major players in the industry are Aurizon Holdings Limited, Asciano Limited, and Australian Rail Track Corporation Limited.
For more information, visit IBISWorld’s Rail Freight Transport report in Australia industry page.
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IBISWorld industry Report Key Topics
This industry is made up of companies that operate for-hire railways that transport freight; operate terminal or depot facilities for receiving, dispatching or transferring rail freight; or provide services allied to railway transport. The industry also includes the management of rail infrastructure and assets used by the freight rail industry. This industry does not include railroads operated in-house for the transportation of goods.
Key External Drivers
Industry Life Cycle
Products & Markets
Products & Services
Market Share Concentration
Key Success Factors
Cost Structure Benchmarks
Basis of Competition
Barriers to Entry
Technology & Systems
Regulation & Policy
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