www.qtlc.com.au  

 Unlocking  the  Galilee  Basin  -­‐    Crea%ng  transport  solu%ons  for  mul%-­‐user  opera%ons        Galilee  Basin  Coal  &  Energy  Conference  November  2013      Dr  Rebecca  Michael,  CEO,  QTLC                

     QLD  Freight  Network    

•  180,500km  public  roads  – 150,000  locally  controlled    (100,000  unsealed)  

•  9,550  km  rail  line  (inc.  narrow,  standard  and  dual  gauge)  

•  15  import/export  ports  •  3  interna%onal  airports  and  various  domes%c  •  2  key  intermodal  freight  terminals  (various  smaller  terminals  and  rail  sidings)  

www.qtlc.com.au  

   The  Freight  System  

•  Geography  exponen%ally  increases  challenges  as  well  as  value  of  efficiency  and  produc%vity  gains  within  the  system  

•  The  freight  system  =  freight  network  +  transport  services  +  regula%on  

•  Whole  of  supply  chain  approach  versus  modal….integrate  not  insulate!  

 

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     Supply  Chain  Security  

•  Freight  is  a  profit  seeking  ac%vity  •  Goal  is  most  produc%ve  and  efficient  flow  of  goods  to  market  

•  Australia  logis%cs  up  to  50%  market  price.  Canada  ½  of  that!  

•  Infrastructure  upgrades  wont  deliver  benefits  unless  the  compara%ve  advantages  of  each  mode  are  op%mised  through  broader  freight  system  across  supply  chains  

www.qtlc.com.au  

     Commission  of  Audit  Report  

•  Recommenda%on  to  reduce  debt  by  $25-­‐30  billion  •  Cannot  reduce  debt  by  adjustments  to  state  opera%ng  

statement  •  Produc%vity  declining  (Source:  Qld  Treasury  &  Trade  ,  2013)  •  Right  infrastructure,  used  the  right  way,  enables  more  

efficient  produc%on  which  benefits  produc%vity  

2007-­‐08  to  2011-­‐12   QLD   AUST  

Average  Annual  Growth  (%)  

Output   1.4   2.7  

MulEfactor    ProducEvity   -­‐2.0   0.00  

Labour  produc%vity   -­‐0.1   1.4  

Less  capital  deepening   1.9   1.4  

www.qtlc.com.au  

     Connec%vity  &  Innova%on  

•  Paradigm  shid  that:  – Recognises  the  connec%vity  of  the  freight  system  – Understands  key  drivers  and  flows  – Underpinned  by  innova%on  and  network  op%misa%on  

– Recognises  that  infrastructure  upgrades  alone  are  not  a  silver  bullet  for  improved  produc%vity  and  economic  growth  

www.qtlc.com.au  

     QLD  Challenges  

•  Major  constraints  to  supply  chain  security:  – First  /  last  mile  (not  just  LG,  access  to  “significant  place  for  freight”)  

– Network  capacity  &  reliability  – Conges%on  – Regula%on  – Role  uncertainty  

•  Fiscal  constraints…..unlocking  latent  efficiency  

www.qtlc.com.au  

     Galilee  Basin  

•  Qld  government  innova%ve  approach  to  understand  transport  infrastructure  demands  

•  Addressing  port,  rail,  road  connec%vity  •  Cri%cal  due  to  characteris%cs  of  Galilee:  –  Inadequate  infrastructure  – Compe%ng  supply  chains  – Geographically  isolated    

www.qtlc.com.au  

   Input  Demand  

•  Significant  amount  of  input  freight:  – Petroleum  – Building  and  construc%on  – Plant  and  machinery  

•  Pressure  on  network  and  regulatory  processes  •  Poten%al  to  disrupt  other  supply  chains  and  communi%es  

www.qtlc.com.au  

Road  

•  Dominant  mode  for  mining  inputs  •  Significant  increase  in:  – HPV’s  – OSOM  movements  – Hazardous  goods  

•  Cri%cal  constraints  include  ageing  bridges  and  culverts,  road  envelope  and  pavement  depth  

•  Permit  processing,  route  assessments,  traffic  management  

www.qtlc.com.au  

OSOM  

www.qtlc.com.au  

Eatons  Range  

www.qtlc.com.au  

     Suppor%ng  Road  Mvmts  

•  Alterna%ve  route  assessment  &  investment  models  –  WA  example  

•  Infrastructure  upgrades  •  Class/period  permits  •  Coastal  shipping  study  

Reducing  cost  to  industry  

www.qtlc.com.au  

Rail  

Alpha    SecEon  of  Track  –  2011  Floods  

• Bulk  fuel  •  Inland  port  •  ISO  tanks  • Containerised  system  • Back  loading  opportuni%es  

www.qtlc.com.au  

     Intermodal/Port  Facili%es  

•  Supply  chains  most  vulnerable  to  efficiency  leakage  at  modal  interfaces  

•  Cri%cal  ports  =  Brisbane,  Mackay  &  Gladstone  •  Large  scale  development  required  at  Mackay  &  Gladstone  to  meet  input  demand  

•  Intermodal  terminal  will  alleviate  road,  fa%gue  issues  and  provide  cross  supply  chain  benefits  

     Regulatory/Policy  Serngs  

•  Gov  seeking  to  reduce  red  tape  

•  Galilee  Basin  State  Development  Area  (2014)  

•  SQSC  Report  advocates  a  number  of  policy  serng  that  will  benefit  the  Galilee  transport  development  

www.qtlc.com.au  

     The  Challenge  Ahead  

•  Commence  opera%ons  by  2016  

•  Substan%al  planning  and  assessment  underway  

•  Infrastructure  upgrades  and  equipment  may  take  up  to  2  years  

•  Must  work  together  to  meet  the  challenge  

www.qtlc.com.au  

   

Thank  you  

www.qtlc.com.au