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The transport industry comprises of road, rail, water and passenger transport sector. Whether it is manufactured goods to retail outlet or to an individual or shipment of building materials to a construction site, practically all the goods produced or manufactured need to be transported to the final consumer. Consequently, growth in this sector is closed linked with to GDP growth of the Australian economy.

The road freight sector account for close to 80% of the revenue generated by the total freight transport sector. The revenue is expected to record fairly modest in the coming years due to the sector’s strong exposure to the retail, wholesale, manufacturing and construction market. In addition, increase in agricultural activity directly impacts the industry positively. Similarly, the rail sector accounts for close to 15% of the revenue generated from the total freight transport sector and is heavily reliant on the mining industry. Furthermore, the water freight sector is expected to demonstrate growth reflecting the increased levels of international exports as the economy is recovering the Global Financial Crisis. The passenger transport sector includes both domestic and international airlines, buses, taxis and ferry is expected to slow over the next few years as a result of a rise in household disposable income and modest business conditions.

Keys to success:

  • Find ATO benchmarks at (https://www.ato.gov.au/Business/Small-business-benchmarks/In-detail/About/Small-business-benchmarks/)offer a broad database of small business benchmarks, which are a guide to help business compare their performance against similar businesses in the industry.
  • The retail and wholesale trade sector are the largest industry customer for the road freight transport services which accounts for 32% of the industry revenue, followed by manufacturing 27%, construction 12%, agriculture 11% and mining 8%.
  • There is a lucrative transport market out there as a result of proliferation of online retail trade that is demanding structural changes in which goods are delivered to consumer.
  • The employment level is expected to demonstrate an increase by an average annual rate of 0.8% through to 2016-17. Consequently, finding and hiring the right employee is crucial;
  • Numerous road projects have commenced under the National Building Program, which has committed $36 billion to road, rail and freight infrastructure. This is a great indicator of an increase in transport sector activity.