Industry Analysis & Industry Trends
The Urban and Suburban Passenger Rail industry has grown over the past five years, despite a dip in revenue during the peak of the recession. In 2012-13, the industry is forecast to generate £3.37 billion, having grown at a compound annual rate of 2.1% since 2007-08. Industry growth has been supported by increased patronage due to a growing population, higher employment levels, rising fuel prices, congestion charges and increased awareness of environmental issues.
Higher demand for services over the past five years has resulted in increased investment in trains. Investment has also been boosted in the lead-up to the London Olympics in 2012-13. In total, the investment in transport services in London in the lead up to the games is estimated at £6.5... purchase to read more
Industry Report - Industry Investment Chapter
Capital intensity has increased in the five years through to 2012-13, mainly due to the investments make by Transport for London. The industry has a high level of investment requirements due to the special governance arrangements in place for Transport for London, contributing an estimated 69.1% of revenue in 2012-13. Transport for London invests in rolling stock, locomotives, rail cars, tracks, tunnel and bridge maintenance, and train station construction and maintenance. This investment from the industry's largest player increases the overall capital intensity. The amount of investment varies, with the Thameslink Programme and Crossrail elevating the level of capital investment and therefore depreciation in the outlook period where the industries capital intensity is set to increase... purchase to read more