Despite privatisation, the role of government in funding infrastructure and managing operating contracts remains significant.
Melbourne, Australia (PRWEB) December 19, 2014
Increasing congestion and expanding networks have driven remarkable growth for operators in the Urban Bus and Tramway Transport industry in Australia over the past five years. According to IBISWorld industry analyst Stephen Gargano, “the industry is dominated by commuter transport services, with charter services making up a minor area of industry activity.” Industry revenue is forecast to rise steadily over the five years through 2014-15, growing at a compound annual rate of 4.6%. Revenue is forecast to increase by 2.1% in 2014-15, to reach $5.7 billion. Strong demand growth for commuter transport and investment in new services, infrastructure and rolling stock capacity has underpinned industry performance.
In commuter bus and tram markets, industry participants run services under operating contracts funded and overseen by state governments. Despite privatisation, the role of government in funding infrastructure and managing operating contracts remains significant. Over the past five years, the industry has grown substantially as demand from passengers lifted and governments invested in expansion. Bus infrastructure expansion has been an attractive choice for state governments due to the lower capital requirements. “Light rail investment has also been popular, although less popular than investment in buses,” says Gargano. The industry directly benefits when bus networks are expanded, as new contracts for operation are tendered for new routes. The industry displays a low level of market share concentration. Major players include Transdev Australasia Pty Ltd, KDR Victoria Pty Ltd, ComfortDelGro Cabcharge Pty Ltd, Brisbane City Council and Ventura Motors Proprietary Limited.
A number of push-and-pull factors have drawn more commuters onto buses and trams, with these expected to continue to drive commuter numbers over the next five years. On the pull side of the equation, new vehicles and routes have increased the appeal of industry offerings. Services have been expanded and governments have also introduced dedicated bus lanes on some routes. These factors have drawn more commuters onto public transport over the period. Factors pushing travellers onto public transport have also strengthened. Population and employment growth have increased the number of people using industry services, as increasingly congested capital cities and restricted parking spaces have made it less attractive to travel by car. The outlook for the Urban Bus and Tramway Transport industry remains positive, even as the rapid expansion of the past five years slows and investment in new services weakens. Demand from major markets is forecast to lift as Australia's workforce expands, while population growth remains strong.
For more information, visit IBISWorld’s Urban Bus and Tramway Transport industry in Australia report page.
Companies in the Urban Bus and Tramway Transport industry operate urban buses and tramways for the transportation of passengers.
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