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Freight transport’s role in Australia’s recovery from global economic crisis

By Jennifer Perry

“One of the reasons why I believe that Australia can pull out of the crisis and why we are the only OECD country that is not in recession is because we have done so much on infrastructure under the previous and current governments,” Morris told delegates at the recent National Transport Infrastructure conference.
“Australia already had a clear set of infrastructure priorities before the crisis and a clear and effective process to move good ideas into action in partnership between industry and government.
“At a time of crisis, we have to redouble our efforts and not ease off.”
According to Morris, the role of freight transport is “very much” tied in with how Australia can move into economic recovery, yet a major concern of the ALC is that freight rail has increasingly become the “poor cousin” to an increasing focus on passenger transport in decisions and allocation of resources in transport and logistics.
“Freight is a huge engine of productivity in its own right and is a fundamental support service to just about every other business and activity in the Australian economy,” Morris said.
“The more efficient you make freight the more knock-on effect you get throughout the economy – a small improvement in transport and logistics provides a huge improvement in domestic production and in Australia’s competitive position with regard to international trade.”
Research conducted by the ALC in 2005 showed that freight accounted for 14.5 per cent of Australia’s total GDP and 11.2 per cent of New South Wales’ domestic product.
However Morris pointed out that out of the original $40 plus billion of the Federal Government’s Nation Building Program (which was originally AusLink, a predominantly freight transport initiative), only $1.1 billion was allocated to freight transport specific infrastructure. The rest of the allocated funds went to passenger transport or for infrastructure that is shred by passenger and freight.
The ALC’s Clearing the Blockages report (which was submitted to Infrastructure Australia), identified 23 supply chain blockages, based on four infrastructure priorities.
“The number one priority is to sort out Australia’s interstate freight rail and freight rail in urban areas,” Morris said.
“Even the trucking lobby groups will tell you that after so many years of underinvestment in freight rail there is so much catching up to do that it’s in their interests that a focus on rail continues to drive further efficiencies.”
The ALC’s second priority is urban planning and congestion.
“The only place where an up-to-date integrated state transport plan exists is in Victoria – their Freight Futures document is an excellent model – however other states are lagging in an integrated freight plan that incorporates infrastructure investment and state-level integrated planning,” Morris said.
ALC’s third and fourth priorities are to make sure that Australia’s major freight transport corridors are protected from urban encroachment and that regulation reform “keeps pace” with infrastructure investment.
“It’s pretty obvious that it would be folly to spend public or private money and invest in infrastructure and then not allow it to be used in the most productive way,” Morris said.
The ALC recognises the north-south link (Melbourne to Gladstone) as Australia’s highest freight transport priority – “it is the backbone of our transport system in the medium to long term,” Morris said.
“There is also a very strong argument to build an artery right along the north-south corridor, but clear of the coast.
“It is also essential that investment continue so that the efficiency of the east-west rail line is maintained.”
Explaining that the east-west rail line carries more than 80 per cent of Australia’s east-west freight, Morris concluded that the ALC’s concern is to ensure that the line is not neglected.

For more information on the ALC’s Clearing the Blockages report visit: www.austlogistics.com.au

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