Market Trends of Australia Rail Freight Transport Industry
This section covers the major market trends shaping the Australia Rail Freight Transport Market according to our research experts:
Increasing rail investment infrastructure has given positive outlook to rail freight transport market
Australia is seeing unprecedented levels of infrastructure investment, which is anticipated to reach a peak of USD 36 billion in 2023. The majority of investment activity and resource demand will be concentrated on road and rail, with rail activity being the main driver of growth, according to Infrastructure Australia's "2021 Infrastructure Market Capacity" report. It is anticipated that transportation activity will increase 68% over the next five years compared to the preceding five. The transportation industry will account for more than 80% of total resource demands at its peak in 2022 to 2023.
The construction phase of the mining boom in the past has been a major driver of rail infrastructure investment, which has then been partially sustained by periods of strong extraction-based phases. Australians have significantly increased their desire for a rural lifestyle over the past five years as the trend toward working from home is fueled by technology and the worldwide pandemic. The local accessibility of smaller cities and regional hubs is considered as a key new driver of rail infrastructure investment in order to facilitate economic diversification and sustainable population expansion. State and territorial transportation authorities are pursuing urban transportation projects, while the National Faster Train Agency is creating business cases for a number of rail networks.
Growing in exports due to the mining industry has driven the market in Australia
Australia's economy is susceptible to commerce and is generally open. This means that changes in the demand for products and services in other nations could have a big impact on australia's economy. Large price increases for certain of Australia's exports of commodities were the primary cause of the terms of trade boom. Natural resources abound in Australia, with the fifth-largest coal reserves, the second-largest accessible reserves of iron ore, and sizable gas resources among them. The increase in global demand owed to a large increase in demand for steel and energy, driven by rapid urbanization and industrialization in China and some other emerging economies has increased dependency on the internal rail transport system.
The mining capital of Australia and a significant player in the global mining market is Western Australia (WA). It is home to some of the biggest mines in the nation as well as a significant number of high-grade materials. With numerous iron ore mines, particularly in the Pilbara region in the state's north, WA is the largest supplier of iron ore in the world. The mining sector in Australia accounts for 75% of exports, employs a sizeable portion of the workforce, and has a large positive impact on the country's improving standard of life, rising incomes, and thriving economy. Thus, an increase in global demand for Australia's exports and imports would lead excess trade activities driving the Australia rail freight transport market
