BUREAU OF TRANSPORT

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BUREAU OF TRANSPORT REGIONALECONOMICS-TRANSPOR
T COLLOQUIUM 05

• Future Opportunities and Challenges Facing the
  Road Freight Industry
• Chris Althaus
• CEO Australian Trucking Association

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Land Freight Transport Sector

• Around 3.4 GDP in 2002/03
• Freight task increases at 1.2 1.3 times GDP
  growth
• Road freight task set to double - by 2020 ( 1549
  to 3000 million tonnes)

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Road Freight vs GDP
250
Actual
Projected
200
150
Index 2000 100
GDP
Road Freight
100
50
0
1970
1975
1980
1985
1990
1995
2000
2005
2010
2015
2020
Research and analysis in the Commonwealth Departme
nt of Transport and Regional Services
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National non-bulk loads
350
Actual
Projected
300
250
Air
200
billion tonne-kms
Sea
Rail
150
Road
100
50
0
1970
1975
1980
1985
1990
1995
2000
2005
2010
2015
2020
Research and analysis in the Commonwealth Departme
nt of Transport and Regional Services
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Key Drivers for the Future

• Road infrastructure investment
• Balanced regulatory reform
• Key Business trends
• Intermodal relationships
• Labour supply

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Road Infrastructure

• Australia has 810,052 km of roads and 44,262 of
  rail track..thus (often)road is the only option
• Australias truck fleet travels around 12,505
  million km and transports some 1549 million
  tonnes of freight per year
• Road transport sector accounts for 75-80
• of land freight
• Trucking carries the Australian economy

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Road Infrastructure

• ATA supports an integrated national transport
  plan incorporating freight transport corridors
  for both road and rail
• ATA welcomed AusLink with its increase in
  funding for a comprehensive land transport plan
• Focus on a national network of road freight
  corridors must be a priority that will add to the
  efficiency of freight transport in the future

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Road Infrastructure

• ATAs major concerns are Australian Government
  now not fully funding national highways
• The need for increased investment in roads to
  fast track key corridor projects
• Unacceptable timeline for duplication of Hume
  Highway not until 2012 or Pacific Highway only by
  2016

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Road Infrastructure

• AusLink targets state and private finance mix
• Private funding of non-toll road
• projects is limited - leaving this key
  responsibility with governments
• Overhaul of infrastructure funding is
• central to domestic economic growth
• and international competitiveness

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Regulatory Reform - Balancing Safety/Environment/P
roductivity

• Trucking is a heavily regulated industry
• - Driving hours
• - Compliance Enforcement
• - Engine fuel standards
• - Vehicle dimensions
• - Payload mass

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Regulatory Reform - Balancing Safety/Environment/P
roductivity

• However, governments must provide regulatory
  settings that allow industry to remain efficient
• Transport efficiency supports economic
• performance / growth
• Loss of balance in regulation typically
• undermines efficiency
• Regulation must keep up with technology eg Mass
  Limits

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Safety Performance

• Whilst our industry is
• perceived by some as
• big, fast dangerous,
• little interest shown in facts.
• Graph shows a significant
• reduction in fatalities
• involving heavy vehicles
• over past 15 years

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Equivalency of Standards
Transient test levels
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Key Business Trends

• Rising fuel costs
• Industry structure changes
• Role of technology
• Customer needs - Just in Time
• Compliance Enforcement - accountability
• Taxes and charges

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Intermodal Relationships

• Links between trucks, trains, ports and airports
  must improve
• Specialisation will increase given demand for
  efficiency gains
• Viable efficiency gains will depend on
• infrastructure/regulatory mix
• Governments must play role to ensure
• balance

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Labour Supply

• Focus on recruitment and retention
• Enhance the image and profile of the transport
  industry for attractive job opportunities and
  career paths.
• Develop and support an effective training
  culture within the industry.
• Review and improve existing training structures
  to promote easier access to the industry.

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Taxes and Charges

• Trucking operators pay a current road user
  charge of 20c per litre (part of diesel excise)
• Operators also pay registration charges
• based on vehicle Gross Vehicle Mass
• BTRE showed that in 1998, heavy vehicles
• paid 1393 million costs attributable were
• 1280 million ie 110 over recovery
• Heavy vehicle charges are currently being
• reviewed by the NTC

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Conclusion

• ATA wants a productive and safe road
• network
• Road transport efficiency and road safety for all
  users depends on standard of road network and
  progressive regulation
• Given Australias demand for freight movement
  our road network needs increased investment
• Progressive and flexible regulation must go hand
  in hand with better roads

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Australian Trucking Association

• To unite and represent
• a professional and safe
• Australian Trucking Industry
• Thank You