Industry Analysis & Industry Trends
The Freight Rail Transport industry grew strongly following privatisation in the 1990s, but revenue growth has stalled in the past five years as freight volumes have declined, manufacturing has fallen and retailers have run down inventories. IBISWorld estimates that in the five years through 2011-12, industry revenue will decline by 6.8% per annum. Investment in new infrastructure, the increasing importance of fuel efficiency, carbon minimisation and increasing congestion on roads have resulted in the industry becoming much more competitive. As such, the industry is well placed to capture growth in underlying freight volumes. Revenue is forecast to increase by 0.1% in 2011-12, to total £728 million... purchase to read more
Industry Report - Industry Investment Chapter
Globally, similar industries are often considered to be capital intensive due to the high cost of rolling stock and other equipment. However, due to the structure of the privatised British rail system, the industry's capital costs are low. Rather than owning rolling stock, the industry rents trains and carriages from rolling stock operating companies. The industry also rents space on the network in the form of network access charges. Network ownership and maintenance is separated from network use. Lease and rental arrangements then flow through the cost structure. Depreciation, however, is much lower than for related industries... purchase to read more