Urgent Strategy Needed to Transform Australia’s Freight Challenges
This article, originally written by Rosanne Barrett and published on November 22, 2022, in The Australian, has been rewritten to reflect an editorial writing style. You can find the original article here.
Building a "supply chain aware" nation is crucial for Australia to efficiently manage its growing freight load. Industry experts are urging the acceleration of the National Freight and Supply Chain Strategy to meet this demand.
A unified approach across local, state, and federal governments would facilitate the smooth flow of products from ports to rail and road networks, into warehouses, and ultimately to consumers. Hermione Parsons, CEO of the Australian Logistics Council, emphasizes the need for increased awareness of supply chain interconnectivity among governments and the public.
“In 2019, end-to-end supply chain and freight logistics were the hidden enablers,” Parsons notes. “No one noticed it happening, but that changed with COVID. Supply chain issues have been a persistent concern throughout the pandemic.”
She stresses the need for public sector expertise in supply chains to make informed decisions about infrastructure and freight connectivity. Australia's economy and lifestyle depend on the seamless operation of the $140 billion supply chain and logistics sectors, which transport approximately 800.4 billion tonnes of freight annually. This burden is expected to grow, with pre-pandemic estimates predicting a 35% increase by 2040.
Sustainability and achieving net zero add to the challenge. Parsons suggests that a review of Australia’s 2019 national freight and supply chain strategy should be advanced from 2024 to incorporate pandemic lessons and emerging global challenges.
“We need to revisit the strategy with a new sense of urgency,” she says. “The pandemic exposed our lack of supply chain resilience. As a nation, we must build this resilience in the face of future pandemics, climatic crises, and geopolitical changes.”
Supply chain and logistics, once invisible, have become prominent due to pandemic-induced disruptions. The Australian Retail Association recently advised consumers to shop early to avoid shortages, reflecting ongoing supply chain issues.
Paul Zahra, CEO of the Australian Retailers Association, highlights the compounded impact of these challenges, particularly during peak shopping seasons like Christmas.
The Australian Logistics Council calls for better oversight of the end-to-end supply chain, advocating for greater consistency across councils, improved road access for heavy vehicles, better industrial land planning, and upgraded road, rail, and port infrastructure.
Parsons points to a lack of education among urban planners about supply chain fundamentals. Research from Queensland University of Technology found no core subjects in supply chain, freight, or logistics across 26 planning courses.
“The education system focuses on urban amenity rather than the critical supply chain needs of every industry,” Parsons says.
The national strategy aims to provide oversight, drive international competitiveness, and catalyze infrastructure investment. While it has made some progress, such as the National Urban Freight Planning Principles and the National Freight Data Hub, industry leaders want accelerated implementation and increased focus on access, sovereign capability, and skills.
A spokesperson from the Department of Infrastructure, Transport, Regional Development, Communication, and the Arts says the strategy aims to position Australia’s multimodal freight supply chains and workforces for future challenges. An update on the strategy's implementation will be released in the annual report next month.
Eliza Anning, Chief Transformation Officer at Linx Cargo Care Group, underscores the importance of investment in transition technology and infrastructure to address logistics sector issues like labor shortages and infrastructure bottlenecks.
Toll Group’s Chief Corporate Affairs Officer, Zed Ivankovic, supports the strategy and calls for alignment of new policies with its objectives, considering recent challenges such as natural disasters, geopolitical tensions, and COVID-19 recovery.
David Smith, Chair of the Australian Trucking Association, highlights the necessity of infrastructure and regulatory upgrades to enhance productivity with high-performance vehicles.
The Department of Infrastructure reports progress on reforms to the Heavy Vehicle National Law, aiming to remove the need for 90% of access permits on heavy vehicle routes over the next five years and improve road and rail connections.
This year, the Australian government will invest $15.58 billion in infrastructure upgrades, including Queensland’s Bruce Highway, Western Sydney Roads, and key freight routes in the Northern Territory and South Australia. A review of the $14.5 billion Inland Rail project will also assess potential connections to intermodal terminals and ports.
“Collaboration among the full supply chain, investors, operators, regulators, and government is crucial to create an environment that encourages investment in transition technology and infrastructure,” Anning says. “Together, we can achieve greater efficiencies and resilience.”
Original article by Rosanne Barrett, published in The Australian on November 22, 2022. The original article can be found here.
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