10 May 2016

Queensland Transport Infrastructure Conference Michael Kilgariff, Managing Director, Australian Logistics Council

Three Areas of Focus Today

• Infrastructure reforms to boost the efficiency of Australia’s freight supply chains

• Critical Infrastructure projects to facilitate more efficient freight movements, including Inland Rail

• Improving heavy vehicle safety

Queensland – Integral to the national freight effort

• Freight movement across the state will increase from 871 million tonnes in 2010–11 to more than one and a half billion tonnes by 2026.

• 23 percent of heavy vehicle freight movements originate in Queensland

But the Logistics industry is still in the GFC tailwinds

• Inconsistent growth at Australia’s three major ports

• Retail sales growing slowly

• CPI showing a deflationary trend…

• Imperative that governments invest in productive infrastructure

Inland 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

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

Asset Recycling

• Diversifies the pool of funding available for public infrastructure investment

• Last week’s budget confirmed funds for a number of major infrastructure projects

• With asset sales off the agenda in Queensland, the State Government has identified the Market Led Proposals process to encourage investment

• ALC is concerned freight projects are not being progressed quickly enough which is impacting on the efficiency of the supply chain

Heavy Vehicle Road Reform

• 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.

Heavy Vehicle Safety • 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

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