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IN THIS ISSUE JULY 2013 . ISSUE 06
ALC Advocacy
2 Michael Kilgariff Managing Director
ALC provides input to overhaul of NSW Planning 2 ALC calls for delivery on the National Land Freight Strategy
2
Future Directions for NSW Local Government
2
Heavy Vehicle Charging and Investment Reform
3
ALC Election Priorities document
3
Infrastructure Australia releases National Infrastructure Plan
3
ALC MEMBER PROFILE
4
SAFTEY
5
NLSC audit review
5
Federal
5
Stevedoring Code of Practice
5
Hume highway duplication
5
Albo gains broadband
6
Maritime Safety Regime Begins
6
STATE
7
Sydney Airport Masterplan
7
Queensland State Freight Strategy
7
New freight terminal for SA
7
INDUSTRY NEWS
8
DP World’s Automatic Stacking Cranes Arrive in Australia Industry
8
New Qantas Freight Service to PNG
8
Toll’s new western Sydney freight sorting facility a step closer
9
Port of Melbourne Trade Results
10
ALC Council Meeting
10
INDUSTRY People
10
Paul Retter new NTC CEO
10
Lyn O’Connell
10
Airfreight Stats
11
BITRE Reports
12
ALC ACTIVITY
12
ALC Update is a free newsletter emailed to all our members and stakeholders. To subscribe/unsubscribe, please contact ALC. Know how we can improve ALC Update? – we’d love to hear your feedback. Contact P: +61 2 6273 0755 F: +61 2 6273 3073 E:
[email protected] w.austlogistics.com.au A: PO Box 20, Deakin West, ACT, 2600 17b National Press Club Building, 16 National Circuit, Barton, ACT, 2600
From the Managing Director The long term lease of the Port of Newcastle, one of the world’s busiest coal export ports, was the headline grabber in the NSW Budget that was handed down in mid-June. Legislation has subsequently passed the NSW parliament for the sale, and the NSW Government is now set to undertake a scoping study on the port transaction to confirm whether the sale represents value for money. ALC publicly welcomed the Government’s decision to offer a long term lease of the port, as we did with the 99-year lease of Port Botany and Port Kembla to the private sector. ALC will be encouraging the NSW Government to place as much of the revenue as possible from the lease of the Port of Newcastle into the Restart NSW Fund to fund critical freight logistics infrastructure in the future. The identification of assets which can be ‘recycled’, such as these NSW ports, was the central theme of a speech I gave at the Victorian Transport Infrastructure Conference a few weeks ago. I will also explore the issue further in a speech to the NSW Transport Infrastructure Conference later this month. The ‘recycling’ of infrastructure assets is a necessary step to unlock greater levels of private sector investment in infrastructure, particularly from superannuation funds.
Super funds have indicated that they are prepared to invest in Australian infrastructure if appropriate projects with stable, long-term returns are offered to the market. The consortium which won a long term lease for the operation of Port Botany and Port Kembla includes a number of Australian industry superannuation funds. Their involvement is welcome, as it is becoming increasingly clear that state budgets are coming under growing pressure and new funding models need to be considered by governments to help meet Australia’s infrastructure deficit. There are many assets that could be transferred to the private sector – the proceeds from which could fund substantial new logistics which is critical to boosting national productivity. This point was highlighted in a report last year by the Infrastructure Finance Working Group and released by Infrastructure Australia. ALC will continue to encourage governments of all levels to take up the recommendation of the Infrastructure Working Group to identify those assets which could be available for private sector investment to boost national productivity. To view of a video of me discussing the recycling of infrastructure assets with the Associate Editor of the Australian newspaper, click here
‘About ALC‘–The Australian Logistics Council represents the major and national companies participating in the Australian freight transport and logistics supply chain. Our mission is to influence national transport and infrastructure regulation and policy to ensure Australia has safe, secure, efficient, sustainable and internationally competitive supply chains. The Australian Logistics Council members and associate members are major companies, associations, government agencies and organisations participating in the Australian freight transport and logistics supply chain. To view a list of our members see last page.
ALC Advocacy
ALC provides input to overhaul of NSW Planning The O’Farrell Government is overhauling the planning regime in NSW, and has launched two new reports to kick start the process. The New Planning System for NSW White Paper and the Draft Metropolitan Strategy for Sydney 2031 contain a range of proposals designed to stimulate discussion and debate on improving planning outcomes in both NSW and metropolitan Sydney. The new planning system will be based on five key themes, including a greater focus is on ensuring planning and delivery for development and infrastructure occurs at the same time. The metropolitan strategy is based figures showing Sydney’s population will grow by around 1.3 million people by 2031, which will require around 545,000 new homes and 625,000 new jobs in the metropolitan area. The ALC submission on the two reports focuses on: »» the need to ensure these high level planning documents follow through on the actions contained in the National Land Freight Strategy »» are informed by, and are consistent with the NSW Freight and Ports Strategy »» deliver on the issue of freight corridor protection (e.g. the Western Sydney Freight Line) The ALC submissions also ask for greater clarity from the NSW Government on how it has progressed identifying ways to leverage greater private sector investment in infrastructure projects which are deemed as being of “state significance”. ALC has also asked for the Government to explain in greater detail how the funding mechanisms identified in the White Paper would apply to the protection of transport corridors spanning different planning regions. To view the ALC submission,
click here
ALC calls for delivery on the National Land Freight Strategy ALC has written to all transport and infrastructure ministers regarding the National Land Freight Strategy which was recently approved for release. The letter signals ALC’s intention to hold all governments to account on the range of actions outlined in the Strategy which have been agreed to by all jurisdictions to improve freight efficiency. For example, the Strategy commits all jurisdictions to mapping the key freight routes in Australia that connect the nationally significant places for freight. It also states that all jurisdictions will identify any funding, regulatory or corridor protection measures required for these key freight routes, including mechanisms for protecting freight corridors and precincts for the growing freight task. ALC is encouraging all government to follow through on these and other undertakings and will, on behalf of industry, closely monitor governments’ performance against these critical tasks. To view the National Land Freight Strategy,
click here
Future Directions for NSW Local Government ALC has given in principle support for the rationalisation of NSW local councils to help ensure they are better equipped to make more robust assessments of traffic volumes and expenditures on their road networks. The ALC submission on the Future Directions for NSW Local Government discussion paper also acknowledges that many councils do not have the resources to maintain road infrastructure in a way that permits efficient heavy vehicle access. In its submission, ALC acknowledges that under the Heavy Vehicle Charging and Investment Reform Initiative, it is proposed that road providers (i.e. councils) prepare a ‘building block’ application to receive funding. ALC holds some doubt however that some smaller councils will have the capacity to prepare the necessary ‘regulatory submission’ to gain access to funding, and therefore agrees with the paper’s proposal to: »» Develop the concepts of multi-purpose County Council, or, in the alternative, »» A concept like the Queensland model of Regional Road Groups. The ALC submission also agrees with the proposal to pool a proportion of funds from the roads component of federal Financial Assistance Grants and the ‘Roads to Recovery’ program to establish a Strategic Projects Fund for roads and bridges. To view the ALC submission,
click here
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ALC Advocacy
Heavy Vehicle Charging and Investment Reform In June ALC participated in a number of workshops on behalf of the freight logistics industry held by the HVCI secretariat to develop a new charging system for heavy vehicles to replace the existing PAYGO system. Industry representatives, including ALC, have made it clear the Regulatory Impact Statement (RIS) should contain options that are: »» capable of practical application; »» recognise the structure of the Australian economy and the condition of Australia’s infrastructure assets; and »» not based on pure theory.
ALC Election Priorities document ALC is finalising a document outlining the freight logistics industry’s key election priorities which it will release in the lead up this year’s federal election. The priorities will focus on the critical tasks needed to boost productivity, efficiency and safety in the freight logistics industry, and will highlight how efficient supply chains are critical to enhancing Australia’s economic performance and way of life. The reforms, initiatives and proposals contained in the document are all focussed on achieving improved infrastructure, regulatory and safety outcomes in the freight logistics industry and if implemented, would improve supply chain efficiency.
ALC told the meeting that the HVCI reform is important for all logistics modes and participants, and that the ALC position, as ratified by its Council, is that ultimately any new mechanism designed needs to ensure that the revenue raised from a new pricing system ‘follows the freight’. The reform must also operate in a manner that neither cross-subsidises different classes of heavy vehicle nor discourages the use of more productive vehicles that will impose less wear on infrastructure over the long term. To view the ALC Interim response to the HVCI initiative, click here
Infrastructure Australia releases National Infrastructure Plan ALC has commended Infrastructure Australia (IA) for laying down seven key challenges to governments to improve the way infrastructure is identified, prioritised and funded in Australia. One the key observations of the ‘National Infrastructure Plan’ is that not all major projects in Australia are subject to a full economic assessment. ALC believes all major projects should undergo rigorous cost benefit analysis before receiving public funding to test whether they are in Australia’s long term economic interest to ensure to ensure the right infrastructure projects are delivered and provide the best value for money. Infrastructure Australia should be the ‘productivity commission’ of infrastructure and should have its role enhanced to play a greater role in scrutinising major projects as well as facilitating greater levels of private sector investment in nationally significant freight logistics infrastructure. ALC also agrees with the report’s recommendation for greater focus on recycling assets. There are many assets that could be transferred to the private sector, the proceeds from which could fund substantial new logistics infrastructure which is critical to boosting national productivity.
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ALC Member Profile
Ctrack ANZ specialises in fleet management and vehicle tracking solutions for a global client base. We are recognised as a world-leading provider of advanced machine to machine (M2M) communication and telematics solutions.
Key Industries: Fleet Management Mining
Ctrack products and services have been designed specifically for the needs of private and commercial organisation and provide a variety of unique solutions in the following categories: »» Vehicle Tracking »» Fleet Management and Solutions
Insurance Government Transport and Logistics
»» Insurance Telematics »» Asset Tracking Ctrack provides industry specific and intelligent solutions for a number of industries helping them by delivering improved telematics information, resulting in cost efficiencies and other benefits for organisations. These benefits include: »» OH & S Benefits such as improved driver safety and health »» Better response times »» Increased customer satisfaction »» Productivity optimisation »» Driver behaviour measurement. Through our ever increasing and evolving range of products and services we strive to live up to our commitment of ‘intelligent solutions’.
For further enquiries please contact 1300 304 033 or visit our website www.ctrack.com/anz Sydney Head Office: Suite 4, 18 Smith Street Chatswood NSW 2067 Australia Melbourne Office: Suite GO4, 75 Tulip Street, Sandringham, Victoria, 3191 NZ Office: Level 3, 81 Grafton Road, Grafton, Auckland 1010
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SAFTEY
FEDERAL Stevedoring Code of Practice SafeWork Australia has agreed to the release of the draft Code of Practice: Managing Risks in Stevedoring.
of the code have failed to meet the general principles of best practice design of regulation and required further work.
The intent of the Code of Practice is to support the harmonised work health and safety laws and to replace the national guidance material published by Safe Work Australia in October 2009.
ALC will be analysing the draft Code released by Safe Work Australia to assess to what extent it will achieve positive safety outcomes and support improved productivity.
ALC has previously expressed concern that previous iterations
The draft Code, which is open for public comment until 16 August 2013, is available by click here
NLSC audit review A full review of the NLSC audits has been completed. As from 1 July 2013 the new NLSC audits have 73 questions that cover the 10 sections of the NLSC audit process. These questions are linked to current legislation and are considered the minimum standard that all parties in the supply chain need to be able to prove their compliance. The 73 NLSC audit questions are used as the entry level in ALC industry codes that operate in the retail, steel and CSG supply chains. Further industry specific questions are added to produce full audits for each industry.
Hume highway duplication The Hume Highway duplication is expected to be fully open to traffic this month after a ribbon cutting event at Holbrook in June to mark the project’s completion.
The ALC Codes are designed to ensure that all participants are aware of their responsibilities in the supply chain. The audits produce a clear and equitable alignment of responsibility within the chain against the relevant regulations, but also induce higher standards of accountability and good practice within the industry.
The duplicated Hume Highway project is more than half a century in the making, and the bypass around Holbrook is the 49th town to be bypassed between Sydney and Melbourne.
For more information please look at www.alcsafety.com.au
With the Hume Highway duplication now completed, ALC looks forward
to the commencement of the trial of High Productivity Vehicles on the Hume Highway. The trial is included in the National Land Freight Strategy as an ongoing obligation to “demonstrate projects and initiatives to address specific infrastructure impediments.” ALC looks forward to a commencement date being announced for this trial as soon as possible.
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FEDERAL CONTINUED Albo gains broadband Kevin Rudd’s successful leadership challenge last month has resulted in a number of key changes to his front bench and outer ministry which have ramifications for the freight logistics industry. These include: »» Deputy Prime Minister, Anthony Albanese, will take on the Broadband, Communications and the Digital Economy portfolio in addition to Infrastructure and Transport. »» Sharon Bird will join the ministry in the Regional Development, Regional Communications and Road Safety portfolios. »» Senator Matt Thistlethwaite will add Infrastructure and Transport to his existing Parliamentary Secretary responsibilities. To view a full list of portfolio responsibilities, click here
National Maritime New
Maritime Safety Regime Begins Monday 1 July 2013 marked the start of new national laws regulating safety in Australia’s maritime industry.
It means seafarers no longer operate under seven different marine regulatory systems, each with their own rules and regulations
The Marine Safety (Domestic Commercial Vessel) National Law Bill 2012 provides a national approach to commercial vessel maritime safety, replacing 50 pieces of state and federal legislation with one national law.
The National Law Bill also establishes the Australian Maritime Safety Authority (AMSA) as the single national maritime regulator. For more information on the new national safety regime, click here
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STATES Sydney Airport Masterplan Sydney Airport has released a Preliminary Draft Master Plan which details the Airport’s vision for the operation and development of Sydney Airport for the next 20 years. The development concept outlines the Airport’s plans for two integrated terminal precincts, combining international, domestic and regional services under the one roof. It also includes a number of measures related to freight, including new positions for freight services and facilities in the airport precinct ALC acknowledges the Sydney Airport Master Plan highlights the need to ensure efficient freight movements feature in the long term planning of
Queensland State Freight Strategy Department of Transport and Main Roads
DRAFT Moving Freight A plan for more efficient freight movement
Great state. Great opportunity.
Scott Emerson, Queensland Minister for Transport and Main Roads, has released the State’s Moving Freight Strategy which aims to expand the state’s freight capacity in light of an expected 70 percent increase in produce and commodity movements.
the airport. This is important, given figures from the NSW Government show freight at Australia’s busiest airport is expected to increase from approximately 650,000 tonnes today to around 1.5 million tonnes by 2035. The Plan does however highlight some commercial issues which may be of concern to ALC members which are expected to be raised during the public consultation phase which is open till 30 August 2013. The freight logistics industry looks forward to working with Sydney Airport to ensure its plans for freight on and off the airport are implemented in such a way that improves efficiency and productivity.
Freight volumes across Queensland are also forecast to increase from 881 million tonnes in 2010 to 1550 million tonnes in 2021. ALC has publicly welcomed the Strategy as it contains a number of measures that have the potential to improve supply chain efficiency in the State, including its support for an inland rail freight line, improved freight data collection and an acknowledgement of the importance of land preservation for key freight corridors. However, it reserves its final judgement until the Queensland Government demonstrates its ability to deliver on the final set of actions and to the projected timeframes. Submissions on the draft strategy close on 12 August 2013. To view the draft Moving Freight Strategy, click here
New freight terminal for SA Details of the new $16.3 million freight terminal in Penfield, South Australia have been unveiled which will serve as key marshalling and freight consolidation point between Melbourne and Perth. The project is estimated to inject $60 million annually into the local economy and generate 50 local jobs during construction and provide up to 350 jobs when operational. Features of the new terminal include: »» Rail container area expansion with capacity to store 30,000 containers and an additional 750,000 payload tonnes of freight; »» 1km rail track; »» Road infrastructure to enable access to B Double trucks at the site.
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INDUSTRY NEWS
New Qantas Freight Service to PNG Qantas Freight has announced it will introduce a weekly freight service between Australia and Papua New Guinea commencing 6 July 2013. The flight between Cairns, Brisbane and Port Moresby will be operated by a Boeing 737300F aircraft, offering 15 tonnes of cargo capacity each way.
DP World’s Automatic Stacking Cranes Arrive in Australia ALC Member DP World has taken delivery of the first shipment of Automatic Stacking Cranes (ASC) which is an integral component of its upgrade to its operations at the Brisbane container terminal. The $250 million automation project will significantly boost productivity and efficiency at the port, as well as drive consistent operational performance. “Manufactured at Cargotec’s Shanghai facility, the Kalmar Automatic Stacking Cranes are fully automated rail mounted gantry cranes that perform container moves within each 300 metre long module,” DP World Australia Managing Director Ganesh Raj said.
The $250 million automation project will significantly boost productivity “The technology will improve the safety and reliability as well as availability and flexibility to the operation of picking and storing containers. “Two further shipments of these cranes from Cargotec are due in July and October and will be assembled on site over the next three to six months. Once fully operational, DP World will operate a total of 14 ASCs at the Brisbane terminal,” he said.
Qantas Freight Executive Manager Lisa Brock said the export market between Australia and Papua New Guinea was strong and our new dedicated freighter service would provide much needed capacity on the route. “This is a popular freight route with increasing volumes of freight in both directions, particularly for seafood, general cargo, mining equipment and machinery,” said Ms Brock. “Our new service provides greater flexibility for our customers and the B737-300 aircraft allows us to carry oversize freight on the main deck.” The B737-300F will come from Qantas Freight’s existing fleet with additional flying time made possible through schedule enhancements. It adds to a network of dedicated freighter operations between Australia, mainland China, Hong Kong, the USA and New Zealand.
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INDUSTRY NEWS Toll’s new western Sydney freight sorting facility a step closer ALC Member Toll has hosted a visit from NSW Premier Barry O’Farrell to inspect the company’s $170 million freight sorting facility at the new Bungarribee Industrial Estate in western Sydney. Mr O’Farrell joined Toll Managing Director Brian Kruger to view construction at the new facility which is the largest of its kind in Australia. Toll Group Managing Director Brian Kruger said the 53,305 square metre facility on 18 hectares will be used by Toll IPEC, and will help grow the capabilities of its new online parcel delivery service Toll Consumer Delivery. “This custom-designed facility, with its highly specialised sortation system will increase Toll’s parcel sorting capacity in Sydney more than threefold to an unprecedented 35,000 parcels per hour,” Mr Kruger said. “Once built, the new facility will enable Toll IPEC to move operations from its current sites in Moorebank, Homebush and Bankstown to a single, purpose-built facility, cementing Toll’s presence in Sydney and allowing for decades of growth in the express parcel delivery market.
NSW Premier Barry O’Farrell and Toll Group Managing Director Brian Kruger inspect plans for the new Toll freight sorting facility
“This $170 million development adds to Toll’s recent industry-leading investments over the past few years that includes a $54 million express road freight terminal in Perth, a $39 million facility in Brisbane and a $10 million terminal in Canberra,” he said. Mr Kruger said Toll was investigating similar opportunities in South Australia, and will also look to grow its capacity in Victoria over the coming years.
Artist’s impression of the new Toll freight sorting facility
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INDUSTRY NEWS
Industry People
Port of Melbourne Trade Results ALC Member Port of Melbourne has released its trade figures for May 2013. Total overseas container throughput (full + empty) for May was 166,923 TEU, this was a decrease of 5.1% over May 2012 and down 1.9% for the financial year to date. Total (full + empty) overseas container imports for the month were slightly down by 0.1% while total (full + empty) overseas container exports were down 10.1% in comparison to May 2012. Full overseas container imports were 80,323 TEU, a decrease of 0.9% against May last year and down 3.3% on a year to date basis. Commodities with the most notable declines were fresh & frozen vegetables, paperboards, rubber and chemicals. Several commodities recorded gains for the month including furniture, toys & sporting goods, miscellaneous food preparations, zinc, aluminium and iron & steel.
ALC Council Meeting ALC will hold a full Council Meeting on 11 July 2013 from 11.00am to 3.30pm at the Future Logistics Living Lab, NICTA in Sydney. The meeting will include a discussion on ALC’s strategic focus for 2013, and will also feature presentations from Rachel Johnson, Transport for NSW and Michael Sutton, Federal Department of Infrastructure and Transport on the NSW Freight and Ports Strategy and National Land Freight Strategy respectively. ALC members who have not yet RSVP’d and would like to attend the Council meeting, please contact
[email protected] before COB Friday 5 July 2013.
Paul Retter (L) George Konstandakos (R)
Paul Retter new NTC CEO Paul Retter AM has been announced the new CEO of the National Transport Commission, replacing Acting CEO George Konstandakos who has been in the role since the death of Nick Dimopoulos in February this year. Mr Retter is currently the Executive Director of the Office of Transport Security (OTS) which is part of the Department of Infrastructure and Transport. Prior to joining OTS, Paul was a senior member of the Australian Defence Force, where he was responsible for developing
and progressing land based military capability requirements to Government. His many appointments included being the Deputy Force Commander of the UN Peacekeeping Force in East Timor, and as Army’s Director General of Preparedness and Plans. NTC Chairman Greg Martin has also paid tribute to acting CEO George Konstandakos. “I commend George for his strong leadership following the passing of our previous Chief Executive, Nick Dimopoulos in February,” said Mr Martin.
Lyn O’Connell Deputy Secretary of the Department of Infrastructure and Transport, Ms Lyn O’Connell, has been awarded a public service medal for outstanding public service in the development of national transport reforms. Ms O’Connell has been responsible for chairing the negotiations for three inter-governmental agreements which were formalised by the Council of Australian Governments in 2011. Ms O’Connell has also been instrumental in the implementation arrangements for the drafting of the legislation and the establishment of the three regulators. ALC congratulates Ms O’Connell on her achievement.
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Airfreight Stats Charts Update - JULY 2013
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ALC Activity Media Releases
Media mentions
Infrastructure Australia’s Blueprint for Reform Welcomed by Logistics Industry - 2 July 2013
States slow to respond to federal infrastructure fund - The Australian, 3 July 2013
click here
click here
VIDEO: Andrew White interviews Michael Kilgariff to discuss supply chain efficiency as part of the Capital Gains Series, The Australian – 24 June 2013 click here
Delivery on Long Term Vision Needed to Improve Freight Efficiency in Queensland 26 June 2013 click here
Recycling of Infrastructure Assets Needed to Improve Supply Chain Efficiency - 19 June 2013 click here
Freight Focus Welcome in Sydney Airport Master Plan – 5 June 2013 click here
‘Priority projects’ list released – Australian Financial Review, 3 July 2013 click here
Privatisation of NSW Ports a model for infrastructure development: ALC, The Australian – 25 June 2013 click here
States slow to respond to federal infrastructure fund - The Australian, 3 July 2013 click here
Others should follow NSW and privatise assets: Kilgariff, Australasian Transport News – 19 June 2013 click here
‘Priority projects’ list released – Australian Financial Review, 3 July 2013 click here
Newcastle Port sale centrepiece of NSW Budget / Transcript PM – 19 June 2013 click here
Submissions ALC Submission on the New Planning System for NSW White Paper and the Draft Metropolitan Strategy for Sydney – 27 June 2013 click here
ALC Submission on the Future Directions for NSW Local Government discussion paper – 27 June 2013 click here
Industry Supports IA on Infrastructure plan and concerns - Supply Chain Review, 2 July 2013 click here
Robust parcel activity delivers jobs – The Australian Financial Review, 2 July 2013 click here
Renewed call for the recycling of assets to unlock greater levels of private sector investment in infrastructure - Rebuilding the Nation click here
Industry bodies back Deegan reform critique – Australasian Transport News, 26 June 2013
BITRE Reports
IFM mulls bid for Newcastle Port The Australian – 19 June 2013 click here
ALC Praises Sydney Airport Master Plan - Supply Chain Review – 7 June 2013 click here
Sydney Airport’s Master Plan focus on freight a good thing – Air Cargo Asia Pacific – 5 June 2013 click here
Rebuilding the Nation – Supply Chain Review – 4 June 2013 click here
click here
Australian Bulk Ports click here
International Road Safety Comparisons click here
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JULY 2013
Members
Associate Members
National Sponsors
+61 2 6273 0755
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