Melbourne, Australia (PRWEB) May 13, 2013
There has been resurgence in popularity for passenger rail over the past decade, with patronage in many cities reaching record levels. Over the five years through 2012-13, revenue for the Rail Passenger Transport industry is expected to have grown at a compound annual rate of 3.7%. According to IBISWorld industry analyst Caroline Finch, “increased demand has resulted in growth in revenue from ticket sales and additional subsidies and grants from governments to allow operators to meet demand.” Industry revenue is expected to reach $8.11 billion in 2012-13, an increase of 2.1% on 2011-12.
“Growing demand has been driven by several factors, including increases in the cost of petrol and other costs associated with passenger vehicles such as parking and time spent in traffic jams,” says Finch. “Strong economic growth, higher employment in central business districts, strong population growth and small increases in real fare levels have also increased patronage.” These factors are likely to underpin demand for public transport services over the five years through 2017-18. Nevertheless, the ability of operators in the Rail Passenger Transport industry to continue to attract a growing share of commuters remains uncertain.
New South Wales, Queensland, Victoria and Western Australia each have a separate authority or corporation providing rail passenger services. The top four players in the industry are Rail Corporation New South Wales (RailCorp), Public Transport Victoria (PTV), Queensland Rail Limited and the Public Transport Authority of Western Australia (PTAWA). The Australian Capital Territory, the Northern Territory and Tasmania do not have any commuter rail providers.
Capacity expansions are underway in major markets, such as New South Wales, but are unlikely to come online in the next five years. The increased demand through 2012-13 has placed substantial strain on the rail networks. Delays and cancellations are common. Operators are scrambling to purchase and lease more trains and restructure timetables to cope with the soaring demand. Increased demand has increased the revenue major players draw from ticket sales, but the industry remains dependent on subsidies to operate and capital expansion grants to grow networks. Over the past three years, significant capacity has been added to competing forms of public transport such as bus systems.
Government announced support for projects such as the North West Rail Link in New South Wales in 2012-13, but the effects of this project on industry revenue are unlikely to be felt within the next five years. The opening of Victoria's Regional Rail Link, expected in 2016-17, is likely to lead to a jump in industry growth in the following year.
For more information, visit IBISWorld’s Rail Passenger Transport report in Australia industry page.
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IBISWorld industry Report Key Topics
The Passenger Rail Transport industry consists of companies operating railways for the transportation of passengers. These railways consist of heavy rail (large trains using dedicated rail tracks over short distances) and commuter travel (large trains using dedicated track over longer distances), but excludes tramways and monorails.
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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