Rail Freight Transport in Australia - Industry Market Research Report

Rail Freight Transport in Australia - Industry Market Research Report

Rail Freight Transport in Australia

Operating conditions have been challenging in the Rail Freight Transport industry over the past few years. Rail freight transport firms mainly transport bulk and non-bulk products to and from Australia's sea ports, and changes in Australia's international trade influence their performance. The COVID-19 pandemic didn't significantly dampen the total mass of exports by sea, which have continued to rise. However, the world price of crude oil has fluctuated because supply outpaced lower demand in 2020. When crude oil prices fall, fuel tends to become cheaper. Rail freight transport firms face a lot of competition from road freight transport. While rail freight is more fuel efficient and favoured for transporting high volumes over long distances, road freight has the advantage of speed and lower costs. Lower fuel prices over the two years through 2020-21 heightened competition from road freight, dampening performance. However, operators made up some of this lost revenue through meeting elevated demand from the agriculture sector, particularly in the bulk freight segment. Revenue is expected to keep growing at an annualised 0.6% to an estimated $8.3 billion over the five years through 2022-23, as high crude oil prices over the past two years have elevated demand for rail freight. This trend includes an estimated drop of 2.9% in 2022-23, since a dip in crude oil prices is encouraging more competition from road transport.

Rail freight transport firms primarily operate railways to transport freight. The industry does not include rail freight terminal operations or private railroads operated in-house for transporting goods.

This report covers the scope, size, disposition and growth of the industry including the key sensitivities and success factors. Also included are five year industry forecasts, growth rates and an analysis of the industry key players and their market shares."