Investing in infrastructure to improve freight productivity and efficiency
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Transcript of Investing in infrastructure to improve freight productivity and efficiency
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Thursday 8 August 2013
NSW Transport Infrastructure Summit Michael Kilgariff, Managing Director, Australian Logistics Council “Investing in infrastructure to improve freight productivity and efficiency
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In NSW, Freight is Big Business
• NSW’s freight task is expected to double to 794 million tonnes by 2030
• Freight and Logistics contributed approximately $58 billion of NSW Gross State Product in 2011
• Nearly 130,000 people are directly employed – tens of thousands more are indirectly employed
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We’ve come a long way in recent years….
• National regulators for heavy vehicles, rail safety and maritime safety have been established
• National Land Freight Strategy finalised and released
• National Ports Strategy signed off by COAG
• State based freight strategies under development
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Time to Deliver to improve freight efficiency in NSW
• Draft NSW Freight and Port Strategy, released in Nov 2012, is an important step to improve freight efficiency
• ALC believes it is ‘Time to Deliver’ on the strategy, and ensure it is finalised and released as quickly as possible
• Industry looking forward to the implementation of concrete measures that will improve network capacity, reliability and sustainability
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TIME TO DELIVER to Improve Freight Efficiency Nationally
Second Sydney Airport at Badgery’s Creek
Inland Rail linking Brisbane and Melbourne
Moorebank
Short Haul Rail
High Productivity Vehicles
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Improving Freight Efficiency at Port Botany
• Australia’s second largest container port
• Investment is needed to improve road and rail links in and out of Port Botany
• Passenger and freight growth underscores need for West Connex project
• ALC looks forward to final details to better understand how it will improve freight efficiency
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Harnessing private sector investment in infrastructure
• Streamlining the PPP process is needed to encourage greater private sector investment in infrastructure
• Initiatives to encourage greater involvement by super funds is also required
• There is a clear appetite for investment by super funds in Australian infrastructure, for example, Port Botany and Port Kembla
• Other state governments should follow suit and identify potential assets for ‘recycling’
• Moneys from recycled infrastructure assets should go back into freight infrastructure to improve efficiency
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Protecting Critical Freight Corridors
• Many ports suffer from inappropriate development
• ‘Crowding out’ of freight impacts on productivity, efficiency and safety outcomes
• Governments need to:
Identify key freight routes Establish funding mechanisms to
ensure their ongoing preservation
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Heavy Vehicle Charging and Investment (HVCI)
• HVCI reform aims to establish a stronger link between road charges and investment
• ALC believes it is a potentially beneficial reforms if it leads to improved productivity, efficiency and safety outcomes
• However, the funding needs to follow the freight and any funds raised are ‘hypothecated’ and not lost to consolidated revenue
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Conclusion
• ‘Freight doesn’t vote’ despite supply chain efficiency impacting on all Australians
• Long term plans are needed to build a stronger freight future and a stronger economy
• Integral part of the solution is investing in infrastructure to improve freight productivity, efficiency and safety
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ALC Forum 2014