15 October 2015

GS1 Supply Chain Week Michael Kilgariff, Managing Director, Australian Logistics Council

Corporate members

National sponsors

Associates

The National Freight Task

• This trend is expected

to continue at a growing rate over the next 40 years

Australia’s freight logistics industry

• Australia’s rising freight task is expected to:

– Double between 2010 and 2030

– Nearly triple by 2050

• The Freight and Logistics sector contributed approximately $58 billion of the NSW Gross State Product in 2011

Australia’s freight logistics industry

• Represented 8.6% of the nation’s GDP in 2013

• Directly contributed $131.6 billion to Australia’s economy in 2013.

• A 1% improvement in efficiency will yield a $2 billion-a-year benefit

The need for investment in short haul rail and intermodal terminals

• Asciano’s ‘constellation hub’ approach – Commencement of port shuttles between Chullora and Port Botany

– Development of St Mary’s Intermodal Terminal

– Improved connections to the Inland Rail

• Moorebank Intermodal’s agreement with SIMTA – Will relieve road congestion from Port Botany by transferring up to 1

million containers annually to rail

• Joint venture between DP World and Toll – Connecting a container staging zone at Port botany to an intermodal

freight terminal at Villawood.

Momentum gathering behind the Inland Rail Project

• Business case finalised and handed down to Government

• Increase GDP by $16 billion over the 10 year construction period

Infrastructure Australia’s Infrastructure Audit – ALC Response

• The movement of freight must receive equal consideration to moving people!

• Auditing the National Land Freight Strategy to identify areas for action, including road reform – ALC supports reform, but insists the revenue must ‘follow the freight’

• Prioritising the efficient use of High Productivity Vehicles travelling to and from Australia’s major ports, and efficient rail linkages

• ALC also encourages IA to identify the current technology projects being conducted

Conclusion

• An efficient and functioning logistics sector is fundamental to a strong and prosperous economy

• Stronger Supply Chains = A Stronger Australia