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Rail Freight Transport in Australia Industry Data and Analysis
The Rail Freight Transport industry has encountered substantial difficulties over the past few years, grappling with a structural decline in coal haulage – historically its largest revenue segment – due to falling coal demand and increased environmental regulation. According to the Department of Industry, Science and Resources, coal production volumes have dropped by an estimated 1.7% annually from 2019-20 to 2024-25, leading to a sharp reduction in demand for rail haulage in key coal-mining regions like Queensland and New South Wales. Major companies have responded by attempting to diversify into different product segments. While agricultural freight, boosted by record wheat harvests and strong commodity exports, has helped partially offset these losses, it has not been enough to drive overall revenue growth. Especially given the ongoing volatility in crop volumes. The sector remains highly volatile, as seen from the eastern states’ widespread flooding in late 2022, temporarily reducing demand. Weak pricing growth, rising operating and labour costs and heightened competition from road freight, bolstered by major infrastructure upgrades, have squeezed industry profit margins. Industrywide revenue fell by 2.4% per year on average over the past five years, reaching an estimated $8.0 billion in 2024-25 following a 3.7% drop in revenue in 2024-25.
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What's included in this industry analysis
IBISWorld's research coverage on the Rail Freight Transport industry in Australia includes market sizing, forecasting, data and analysis from 2015-2030. The most recent publication was released July 2025.
About this industry
What's this industry report about?
The Rail Freight Transport industry in Australia operates under the ANZSIC industry code I4710. 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. Related terms covered in the Rail Freight Transport industry in Australia include above rail, below rail, rolling stock, non-bulk freight and bulk freight.
What's included in this industry?
Products and services covered in Rail Freight Transport industry in Australia include Other bulk freight transport, Non-bulk freight transport and Coal and mineral freight transport.
What companies are included in this industry?
Companies covered in the Rail Freight Transport industry in Australia include Aurizon, Pacific National and SCT Logistics.
Performance
What's included in the Performance chapter?
The Performance chapter covers detailed analysis, datasets, detailed current performance, sources of volatility and an outlook with forecasts for the Rail Freight Transport industry in Australia.
Questions answered in this chapter include what's driving current industry performance, what influences industry volatility, how do successful businesses overcome volatility, what's driving the industry outlook. This analysis is supported with data and statistics on industry revenues, costs, profits, businesses and employees.
Products & Markets
What's included in the Products and Markets chapter?
The Products and Markets chapter covers detailed products and service segmentation and analysis of major markets for the for the Rail Freight Transport industry in Australia.
Questions answered in this chapter include how are the industry's products and services performing, what are innovations in industry products and services, what products or services do successful businesses offer and what's influencing demand from the industry's markets. This includes data and statistics on industry revenues by product and service segmentation and major markets.
Geographic Breakdown
What's included in the Geographic Breakdown chapter?
The Geographic Breakdown chapter covers detailed analysis and datasets on regional performance of the Rail Freight Transport industry in Australia.
Questions answered in this chapter include where are industry businesses located and how do businesses use location to their advantage. This includes data and statistics on industry revenues by location.
Competitive Forces
What's included in the Competitive Forces chapter?
The Competitive Forces chapter covers the concentration, barriers to entry and supplier and buyer profiles in the Rail Freight Transport industry in Australia. This includes data and statistics on industry market share concentration, barriers to entry, substitute products and buyer & supplier power.
Questions answered in this chapter include what impacts the industry's market share concentration, how do successful businesses handle concentration, what challenges do potential industry entrants face, how can potential entrants overcome barriers to entry, what are substitutes for industry services, how do successful businesses compete with substitutes and what power do buyers and suppliers have over the industry and how do successful businesses manage buyer & supplier power.
Companies
What's included in the Companies chapter?
The Companies chapter covers Key Takeaways, Market Share and Companies in the Rail Freight Transport industry in Australia. This includes data and analysis on companies operating in the industry that hold a market share greater than 5%.
Questions answered in this chapter include what companies have a meaningful market share and how each company is performing.
External Environment
What's included in the External Environment chapter?
The External Environment chapter covers Key Takeaways, External Drivers, Regulation & Policy and Assistance in the Rail Freight Transport industry in Australia. This includes data and statistics on factors impacting industry revenue such as economic indicators, regulation, policy and assistance programs.
Questions answered in this chapter include what demographic and macroeconomic factors impact the industry, what regulations impact the industry, what assistance is available to this industry.
Financial Benchmarks
What's included in the Financial Benchmarks chapter?
The Financial Benchmarks chapter covers Key Takeaways, Cost Structure, Financial Ratios, Valuation Multiples and Key Ratios in the Rail Freight Transport industry in Australia. This includes financial data and statistics on industry performance including key cost inputs, profitability, key financial ratios and enterprise value multiples.
Questions answered in this chapter include what trends impact industry costs and how financial ratios have changed overtime.
Industry Data
What's included in the Industry Data chapter?
The Industry Data chapter includes 10 years of historical data with 5 years of forecast data covering statistics like revenue, industry value add, establishments, enterprises, employment and wages in the Rail Freight Transport industry in Australia.
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Frequently Asked Questions
What is the market size of the Rail Freight Transport industry in Australia in 2026?
The market size of the Rail Freight Transport industry in Australia is $8.0bn in 2026.
How many businesses are there in the Rail Freight Transport industry in Australia in 2025?
There are 43 businesses in the Rail Freight Transport industry in Australia, which has declined at a CAGR of 3.7 % between 2020 and 2025.
How may import tariffs affect the Rail Freight Transport industry in Australia?
The Rail Freight Transport industry in Australia is unlikely to be materially impacted by import tariffs with imports accounting for a low share of industry revenue.
How may export tariffs affect the Rail Freight Transport industry in Australia?
The Rail Freight Transport industry in Australia is unlikely to be materially impacted by export tariffs with exports accounting for a low share of industry revenue.
Has the Rail Freight Transport industry in Australia grown or declined over the past 5 years?
The market size of the Rail Freight Transport industry in Australia has been declining at a CAGR of 2.4 % between 2020 and 2025.
What is the forecast growth of the Rail Freight Transport industry in Australia over the next 5 years?
Over the next five years, the Rail Freight Transport industry in Australia is expected to decline.
What are the biggest companies in the Rail Freight Transport industry in Australia?
The biggest companies operating in the Rail Freight Transport industry in Australia are Aurizon, Pacific National and SCT Logistics
What does the Rail Freight Transport industry in Australia include?
Coal and mineral freight transport and Non-bulk freight transport are part of the Rail Freight Transport industry in Australia.
Which companies have the highest market share in the Rail Freight Transport industry in Australia?
The company holding the most market share in the Rail Freight Transport industry in Australia is Aurizon.
How competitive is the Rail Freight Transport industry in Australia?
The level of competition is moderate and steady in the Rail Freight Transport industry in Australia.
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