24 May 2016
Supply Chain Management Conference Michael Kilgariff, Managing Director, Australian Logistics Council
Getting it right: ALC action plan for safety, innovation and efficiency in the supply chain
• Getting the Structure Right • Getting Planning Right • Getting Rail Right • Getting Road Pricing Right • Getting Road Safety Right • Getting Technology Right
Infrastructure Australia 15-year Plan – recommendations
• National Freight and Supply Chain Strategy
• Freight corridor protection
• Integrating land use planning and transport planning
• Progressing road funding reforms
Economic Importance of the Supply Chain
• 1%=$2 billion – For every 1% increase in supply chain
efficiency, there is a $2 billion boost to Australia’s GDP.
– Forestry, manufacturing, processed food, wholesale and retail trade and construction would benefit most.
• Australia’s Freight task to increase 80% between 2010 and 2030 – At this rate, the freight task will triple by
2050.
Getting the Structure Right
• A Freight Policy Division within the Australian Government needed to progress reforms – Responsibilities:
• to work with logistics industry to drive positive economic reforms;
• to progress recommendations of Infrastructure Australia’s 15 year Plan;
• to work with Infrastructure Australia to develop a National Freight and Supply Chain Strategy.
National Freight and Supply Chain Strategy
As part of this strategy, Infrastructure Australia would:
• map nationally significant supply chains and their access to supporting infrastructure and gateways;
• evaluate the adequacy of the institutional framework supporting freight networks and recommend reforms and investments that will move the efficient movement of freight;
• facilitate the mapping of nationally significant supply chains and their connections across ports, airports, roads, rail and coastal shipping;
• identify the key bodies overseeing their efficient operation; and
• recommend a series of reforms and investments to enable the more efficient movement of freight.
Getting the Planning Right
• Poor planning one of the biggest inhibitors to improved supply chain efficiency.
• Lack of buffer zones impedes efficient use of infrastructure.
• Co-locating sensitive uses and freight infrastructure is poor long term thinking.
• Freight-related activities inevitably generate traffic, noise and air quality impacts on nearby areas and communities, and they are likely to increase as trade volumes grow.
• These failings restrict industry’s ability to operate 24 hours, 7 days a week, which is needed to manage the predicted freight growth over the next few decades.
• The flexibility of infrastructure operations and the preservation of freight corridors are critical to fulfilling the future Australian freight task.
Getting Rail Right • Imperative to shift more freight to rail.
• Inland Rail has been added to Infrastructure Australia’s Priority Project List.
• $594 million budget commitment to fund land acquisitions.
• Efficient linkages to the ports critical to efficiency of the national freight effort.
• Short haul rail to play an important role in improving supply chain efficiency.
Getting Road Pricing Right
• ALC supports reform that improves long term funding sustainability of key freight routes in a transparent and equitable manner.
• It is critical that funds collected are invested in the infrastructure used by the vehicle.
Getting Safety Right • Statistics show heavy vehicle
safety is improving
• Greater gains can be made through technology, an ‘operating licensing’ scheme, greater compliance with Chain of Responsibility obligations
• These measures are far superior to the Road Safety Remuneration Tribunal
• The RSRT caused significant confusion, inefficiency and costs across the industry
Getting Technology Right
• Technology also has an important role to play in supporting a more
efficient rail freight sector.
• Technology has an important role to play in improving safety, enhancing efficiency and boosting productivity.
• This is especially the case with heavy vehicles, with on-board
telematics systems recording speed data and driver break times.
Conclusion
• Freight efficiency matters for all Australians
• Without a long term plan for Australia’s freight future, we will miss an opportunity to build a stronger economy
• Thank you
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