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Now is the time for action


Hal Morris

AUSTRALIAN domestic and international freight transport is worth an estimated $150 billion and generates the equivalent of 14.5 per cent of Australia’s GDP while employing more than an estimated 1 million people in around 165,000 businesses.

Transport and logistics (T&L) affects every Australian every day. It is a major Australian industry in its own right and is also supports all other businesses.

Australia is facing an accelerating freight task – forecast to double between 2006 and 2020.

Now is a time of great opportunity for the Australia’s transport and logistics industry with much movement in the reform agenda, including:

• The Australian Logistics Council (ALC) released the new National Strategy for the T&L Freight Industry in February, following extensive industry consultation over ten months. This is a strategy for our entire industry, providing a common focus, setting out priorities and actions for the next eight years that industry, in partnership with governments, must develop and implement to enhance Australia’s freight supply chain.
• The National Transport Commission (NTC) National Transport Policy Framework is with transport ministers, with each jurisdiction to respond to an aspect at the next ministerial meeting in early May. Its recommendations closely reflect those of the national industry strategy.
• Infrastructure Australia has now been enacted with Sir Rod Eddington appointed as chair. Infrastructure Australia will undertake a comprehensive national infrastructure audit, compile an infrastructure priority list as well as develop nationally consistent guidelines for public private partnerships and providing advice on regulatory reforms.
• The Council of Australian Governments (COAG) has also elevated transport reform with its commitment to consider Infrastructure Australia’s infrastructure priority list in March next year.

The T&L industry has to have the robustness to respond quickly and effectively to changing domestic and global customer requirements while balancing the viability with sustainable economic, environmental and social performance.

The national industry strategy, in conjunction with the national transport framework, sets out a strong path forward for industry, in partnership with governments, to adopt in order to improve the effectiveness of Australia’s freight supply chain.

In particular, the national industry strategy makes seven recommendations:

Safety: implementing T&L Vision Zero nationally - no injury or death is acceptable in T&L.
• Investment: identification of the highest priority infrastructure investments, on a truly intermodal basis, to ensure the most efficient use of the supply chain.
Regulatory reform: work towards ensuring red tape is minimised and nationally consistent rules, regulations and industry codes.
People: strategically identify and address shortages along the entire supply chain as well as working with other stakeholders to meet our skill requirements.
Energy & environment: streamline supply chains and adopt appropriate best-practice science and technology to reduce emissions.
Innovation & technology: develop and promote innovation as well as encourage the adoption of cutting edge technology.
Leadership: identify and communicate with government and community on common nationally significant issues with a unified voice.

As well as the recommended reforms, the strategy also found it is vital for industry to make more efficient use of existing infrastructure and supply chain systems as part of our strategic blueprint.

Industry must now take the opportunity, and work with government to ensure this agenda moves forward taking into consideration the national freight task’s needs to cope with the growing demand.

In order to do so, governments and industry will need to make hard decisions and show real commitment to the seven recommendations of the national industry strategy. But not to do so should not be an option.

Copies of the National Strategy for the T&L Freight Industry can be requested by contacting the ALC on 1300 785 236 or by downloading the report on the ALC website at www.austlogistics.com.au. Hal Morris is the chief executive of the Australian Logistics Council.


*Excerpt from MHD Supply Cahin Soultions, May/June 2008 (p.16)

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