High-speed performance: Major railway construction projects boost industry revenue

The Railway Track Construction industry builds three kinds of rail networks, which transport passengers, intermodal freight and mining output. Construction of intermodal freight and passenger networks generally rely on government funding, and expansion plans are developed by government authorities to meet long-term objectives. Governments are heavily involved in downstream industries as both owners and operators of track, although the industry is currently shifting towards private equity involvement to fund and operate public rail projects under public-private partnerships (PPPs).The industry has been subject to wide annual fluctuations in demand conditions over the past five years and is currently in the midst of a major growth phase...read more.

Industry Statistics & Market Size
Annual Growth 14-19
Forecast Growth 19-24

Industry Threats & Opportunities

  • Major railway construction projects in Melbourne and Sydney have boosted the industry’s performance
  • Demand has risen with a boost to light rail construction in key capital and regional cities
  • State and PPP funded passenger rail projects to support the industry’s performance
  • Industry Report - Starting a New Business Chapter

    The barriers to entry are high in the industry. Potential new entrants are likely to be deterred by the prominent position held by the existing large-scale players. These firms generally have established technical capacities, access to a pool of skilled labour, the ability to contest all scale of contracts in multiple locations and a proven track record. The large-scale players, such as CIMIC, John Holland, Downer EDI and UGL, have a good understanding of dealing with public authorities, which is essential as the tendering process focuses on public sector contracts.Establishing new operations requires access to capital equipment and skilled labour. Much of this equipment may be leased on demand or obtained through wet hire arrangements with subcontractors. Exp...purchase to read more.

    Additional Insights for the Railway Track Construction Industry

    IBISWorld has determined the most important Key Success Factors for the Railway Track Construction are:

  • Ability to change which markets the firm operates in
  • Having links with suppliers
  • Access to highly skilled workforce
  • IBISWorld analysts also discuss how external factors such as Demand from rail passenger transport and Capital expenditure by the public sector in the Railway Track Construction industry impact industry performance..

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    What's in this report

    What is the Railway Track Construction Industry?

    Industry businesses construct railway tracks, with contractors specifically engaging in new work, reconstruction and repairs. The industry includes construction management firms and special trade contractors that construct railway tracks and transit systems.

    Industry Products
  • Tracklaying and construction
  • Overhead line construction
  • Platform construction
  • Tunnelling
  • Industry Activities
  • Tracklaying and construction
  • Overhead powerline and signal construction
  • Platform construction
  • Tramway construction
  • Tunnelling
  • Table of Contents

    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources
    Industry Statistics Snapshot
    Industry Structure
    Executive Summary
    Executive Summary
    Key External Drivers
  • Demand from rail passenger transport
  • Capital expenditure by the public sector
  • Demand from rail freight transport
  • Total mass of exports by sea
  • Actual capital expenditure on mining
  • Domestic price of iron and steel

  • Current Performance
  • Profitability strengthens
  • Participation rises
  • Government spending
  • Mining investment
  • Rail regulation
  • Chart: Revenue Growth

  • Industry Outlook
  • Profit and jobs growth
  • Project pipeline
  • Mining railways
  • Table: Railway Track Construction Industry Revenue Outlook

  • Industry Life Cycle
  • Life cycle reasons
  • Chart: Benchmarking - Railway Track Construction Industry Lifecycle vs The Economy

  • Supply Chains
    Key Buying Industries
  • Mining
  • Rail Freight Transport
  • Rail Passenger Transport

  • Key Selling Industries
  • Construction Machinery and Operator Hire
  • Gravel and Sand Quarrying
  • Machinery and Scaffolding Rental
  • Mining and Construction Machinery Manufacturing
  • Structural Steel Fabricating

  • Products & Services
  • Tracklaying and construction
  • Tunnelling
  • Platform construction
  • Overhead line construction
  • Chart: Railway Track Construction Industry Products and Services Segmentation

  • Demand Determinants
    Major Markets
  • State and territory governments
  • Private sector
  • Federal Government
  • Chart: Major Market Segmentation for the Railway Track Construction Industry

  • International Trade
    Business Locations
    Chart: Business Locations by State
    Market Share Concentration
    Key Success Factors
    Cost Structure Benchmarks
  • Profit
  • Purchases
  • Wages
  • Subcontracted labour
  • Equipment hire and lease
  • Depreciation
  • Other
  • Chart: Cost Structure Benchmarking – Sector vs Railway Track Construction

  • Basis of Competition
    Barriers to Entry
  • Table: Barrier to Entry Checklist for the Railway Track Construction Industry

  • Industry Globalization
    CIMIC Group Limited, CCCI Australia Pty Ltd,
  • Table: CIMIC Group Limited - financial performance
  • Table: CCCI Australia Pty Ltd - financial performance

  • Capital Intensity
  • Chart: Level of Capital Intensity for the Railway Track Construction Industry
  • Chart: Tools of the Trade: Growth Strategies for Success

  • Technology & Systems
    Revenue Volatility
  • Chart: Volatility vs Industry Growth

  • Regulation & Policy
    Industry Assistance
    Table: Industry Data for the Railway Track Construction Industry
  • Industry Revenue (2010-2024)
  • Industry Gross Product (2010-2024)
  • Establishments (2010-2024)
  • Businesses (2010-2024)
  • Employment (2010-2024)
  • Wages (2010-2024)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
    Non-Bulk Freight
  • Goods transported unpacked in large quantities, predominately mineral and agricultural products.
  • Bulk Freight
  • Goods transported unpacked in large quantities, predominately mineral and agricultural products.
  • Dry Hire
  • The hire of plant and equipment without an operator.
  • Intermodal Transport
  • The transport of goods in standard containers between rail, water and road freight service providers.
  • Wet Hire
  • The hire of plant and equipment with a qualified operator.
  • What Our Customers Say

    Why buy this report?

    IBISWorld’s Railway Track Construction market research report can be used to help you: understand market size and growth potential; major companies; draft business plans and pitch books; and conduct benchmarking and SWOT analysis. Our industry analysis highlights macro industry trends in the overall sector and micro trends faced by companies that do business in the industry. The industry report also provides key industry statistics and 5-year forecasts to anticipate future industry prospects so you can decide with confidence.

    IBISWorld industry market research reports enable you to:
    • Find out about key industry trends
    • Identify threats and opportunities
    • Inform your decisions for marketing, strategy and planning
    • Quickly build competitive intelligence
    This report on Railway Track Construction:
    • Provides Market Size information to assist with planning and strategic decisions.
    • Includes the necessary information to perform SWOT, PEST and STEER analysis.
    • Helps you understand market dynamics to give you a deeper understanding of industry competition and the supply chain.
    • Analyses key performance and operational metrics so that you can benchmark against your own business, that of your customers’ businesses, or your competitors’ businesses.
    The Railway Track Construction market research report includes:
    • Historical data and analysis for the key drivers of this industry
    • A five-year forecast of the market and noted trends
    • Detailed research and segmentation for the main products and markets
    • An assessment of the competitive landscape and market shares for major companies
    • And of course, much more

    IBISWorld reports on thousands of industries around the world. Our clients rely on our information and data to stay up-to-date on industry trends across all industries. With this IBISWorld Industry Research Report on Railway Track Construction, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

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