Freight Rail, Rail Supply, Research & Development, Safety, Standards & Regulation

Council targeting end of year for national freight strategy

Julia Creek first freight train. Photo: Queensland Rail

A better-integrated national freight network facilitated by coordinated investment will help meet the needs of Australian businesses and households, under a program being developed by federal, state and territory transport and infrastructure ministers.

The first 2018 meeting of the Coalition of Australian Governments’ Transport and Infrastructure Council took place on Friday, and kicked off with the release of 54 “priority actions” stemming from a recent industry inquiry.

The National Freight and Supply Chain Priorities Report will inform the Council’s development of a National Freight and Supply Chain Strategy, which is targeted for release at the end of 2018.

The actions recommended to the Council through the inquiry cover national government investment, institutional and governance structures, and legislative reform.

Priority actions include measures to integrate the freight transport system through coordinated project investment and planning and updates to data gathering on national freight performance.

The report also recommends that government investment is targeted at establishing efficient rail freight connections to major ports and through metropolitan areas, and that investigations be carried out into potential overlapping in approval processes for major freight infrastructure projects.

Federal transport and infrastructure minister Michael McCormack said the finalised strategy would improve Australian business competitiveness by making commodity movements quicker and more efficient.

“We know the national freight task will almost double over the next 20 years, which presents a challenge and opportunity to work with industry to maximise the benefit from the sector which already contributes around 10 per cent of our productivity,” McCormack said.

“I thank the panel for its report, which provides a platform for government to look at opportunities to drive efficient and sustainable freight logistics while balancing the freight needs of a growing economy and ensuring the sector and the community share the benefits too.”

The expert panel that conducted the inquiry included Qube managing director Maurice James, Infrastructure Australia board member Nicole Lockwood, NSW Ports CEO Marika Calfas, and Simon National Carriers executive chairman David Simon.

In developing the report, the panel drew on 127 submissions and one-on-one meetings with over 200 individuals from 28 peak industry bodies and 90 businesses, along with research commissioned by the Department of Infrastructure, Regional Development and Cities.

Australasian Railway Association chief executive Danny Broad said the rail industry welcomed the report, and noted that it reflected many of the ARA’s policy priorities, including in the areas of corridor protection, heavy vehicle pricing, short haul rail, consistency between state and federal plans, and improved land use planning.

“The final report provides a range of recommendations across the critical areas of investment, governance and reform which are critical to improving the efficiency and productivity of the freight rail sector,” Broad said.

“The rail industry is pleased that key recommendations include the sector playing a direct consultative role in the strategy’s development and a formal advisory role thereafter.”

Now that the report has outlined these priority actions, Broad said that it was important that “momentum” was maintained to by developing a clear path to their implementation via federal and state coordination.

“We need strong leadership at the Commonwealth level to drive these recommendations and reforms forward, working closely with state and territory governments to follow-through with recommendations, supported by a clear and transparent workplan to assist industry in monitoring and tracking progress to ensure governments are kept to account and key recommendations in this Report are adopted and implemented effectively.”

The Australian Logistics Council likewise welcomed what it called a “comprehensive” report into the problems facing currently facing the freight industry and the measures needed to address them.

“The report articulates the challenges that are hampering greater supply chain efficiency and safety – a lack of data, antiquated planning practices, poorly coordinated infrastructure investment and poor appreciation of freight’s economic importance,” ALC managing director Michael Kilgariff said.

“This report now gives all governments the opportunity to work cooperatively to develop a coherent and effective strategy that addresses each of these priority areas.”

Kilgariff noted that, due to the “complexity of the jurisdictional cooperation” that would be involved in the execution of the strategy nationally, an intergovernmental agreement may have to be pursued. He also welcomed the report’s suggestion that an “Industry Advisory Group” monitor the implementation of the finalised strategy.

“We urge the federal government to move swiftly to establish this body, and attach clear deadlines to key milestones within the strategy when it is released in November.”