Rail Freight Transport in Australia Industry Market Research Report Now Updated by IBISWorld

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As global demand for coal, iron and other resources soars, so does the national freight task and demand for rail freight. For this reason, industry research firm IBISWorld has updated its report on the Rail Freight Transport industry in Australia.

IBISWorld Market Research

IBISWorld Market Research

Rail freight is an industry with potential for reinvention

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.

Follow IBISWorld on Twitter: http://twitter.com/#!/ibisworldau

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.

Industry Performance
Executive Summary
Key External Drivers
Current Performance
Industry Outlook
Industry Life Cycle
Products & Markets
Supply Chain
Products & Services
Major Markets
International Trade
Business Locations
Competitive Landscape
Market Share Concentration
Key Success Factors
Cost Structure Benchmarks
Basis of Competition
Barriers to Entry
Industry Globalisation
Major Companies
Operating Conditions
Capital Intensity
Technology & Systems
Revenue Volatility
Regulation & Policy
Industry Assistance
Key Statistics
Industry Data
Annual Change
Key Ratios

About IBISWorld Inc.
Recognised as the nation’s most trusted independent source of industry and market research, IBISWorld offers a comprehensive database of unique information and analysis on every Australian industry. With an extensive online portfolio, valued for its depth and scope, the company equips clients with the insight necessary to make better business decisions. Headquartered in Melbourne, IBISWorld serves a range of business, professional service and government organisations through more than 10 locations worldwide. For more information, visit http://www.ibisworld.com.au or call (03) 9655 3886.

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Gavin Smith
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