Thinking of Buying a Transport Business in Australia? Here Are 3 Vital Questions to Ask
The Australian road freight transport industry generated $73.0 billion in revenue in 2025, employing over 188,000 people across 27,000 enterprises. Profit margins remain slim at around 3.5%, reflecting high costs and strong competition.
Industry revenue is projected to grow at 1.5% annually through 2030, reaching $79.0 billion. Growth is expected to be driven by population increases, ecommerce expansion, agricultural exports, and the government’s $1.2 million new homes initiative. However, challenges such as rising fuel prices, tolls, and truck driver shortages continue to pressure smaller operators.
1. Are the Business’s Financials Resilient in a High-Cost, Low-Margin Industry?
Why It Matters
Transport businesses run on tight margins due to volatile fuel costs, escalating wages, and toll charges. Purchases, predominantly diesel, remain the largest cost, while wages account for 27.4% of revenue. Operators typically rely on surcharges to manage fuel volatility, but smaller businesses often lack bargaining power to pass costs on to clients.
What to Check
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Profitability benchmarks – Compare margins against the industry average of 3.5%.
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Fuel management – Assess surcharge policies, fuel efficiency of vehicles, and exposure to oil price fluctuations.
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Wage costs – Review compliance with Fair Work and ability to recruit drivers amid a shortage of 26,000 nationwide.
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Toll exposure – Understand the financial impact of metropolitan toll charges on urban-based operations.
2. Does the Client Base Provide Stability and Growth Potential?
Why It Matters
Transport businesses succeed by securing recurring contracts in high-demand sectors. Bulk freight tied to mining and agriculture provides steady volumes, while parcel and ecommerce deliveries are expanding rapidly. Construction-related freight has underperformed in recent years due to housing slowdowns, though government housing initiatives are expected to revive demand.
What to Check
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Client contracts – Identify reliance on key accounts, and whether contracts are long-term or ad hoc.
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Sector exposure – Review whether revenue comes from resilient markets like mining, agriculture, or parcel delivery versus cyclical construction.
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Diversification – Check if the business services multiple regions or industries to spread risk.
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Reputation – Look for reliability, compliance with safety standards, and service delivery track record.
3. Is the Business Positioned for Future Trends and Industry Shifts?
Why It Matters
The future of road freight will be shaped by sustainability, technology adoption, and shifting consumer expectations. Electric freight vehicles are being rapidly adopted by major players such as Toll and Linfox, with government incentives accelerating the transition. Businesses that fail to invest risk losing competitiveness.
What to Check
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Fleet modernisation – Review whether vehicles meet Euro 5/6 standards and the extent of investment in electric or alternative-fuel trucks.
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Technology use – Assess GPS, tracking, and scheduling systems that reduce costs and improve customer experience.
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Scalability – Consider whether the business can expand into interstate or last-mile delivery segments, which are projected to grow.
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Compliance – Confirm adherence to the Heavy Vehicle National Law (HVNL) and fatigue management standards.
Ready to Invest in a Thriving Transport Business?
With revenue growth underpinned by population, ecommerce, and agricultural demand, transport businesses offer solid opportunities for investors.
Success will rely on securing resilient client contracts, managing high operating costs, and keeping pace with industry shifts towards sustainability and technology.
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