investing in infrastructure to improve freight productivity and efficiency

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Michael Kilgariff, CEO, Australian Logistics Council delivered this presentation at the 2013 NSW State Transport Infrastructure Summit. The State Transport Infrastructure Series of events represent the leading forums in Australia to assess the future plans for transport infrastructure development and financing across Australia. For more information, please visit www.statetransportevents.com.au

TRANSCRIPT

PowerPoint Presentation

Thursday 8 August 2013

NSW Transport Infrastructure Summit Michael Kilgariff, Managing Director, Australian Logistics Council Investing in infrastructure to improve freight productivity and efficiency

In NSW, Freight is Big Business

NSWs 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

Weve 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

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

TIME TO DELIVER to Improve Freight Efficiency Nationally

Second Sydney Airport at Badgerys Creek

Inland Rail linking Brisbane and Melbourne

Moorebank

Short Haul Rail

High Productivity Vehicles

Improving Freight Efficiency at Port Botany

Australias 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

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

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

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

Conclusion

Freight doesnt 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

ALC Forum 2014

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