Rail Opportunities Abound

By Herbert Hermens, CEO of Keech Australia

Booming mining industries in countries like Mongolia and Kazakhstan represent strong opportunities for Australian rail infrastructure manufacturers – but only if they can deliver a competitive offering.

With labour costs up to four times higher than in other countries, that means Australian manufacturers need to focus on productivity, consistency and quality to be able to compete.

Where the opportunities lie

Most of the talk about overseas opportunity has centred on China and South East Asia, but there is a growing and untapped market in developing nations such as the Eastern Bloc countries of Central and Eastern Europe.

As the mining industries in those countries shift from construction to production, there is an increasing need for transport infrastructure, including freight and passenger rail.

In Kazakhstan, rail is required to export goods into neighbouring Russia, China and central Asia.