Port Botany

Freight coalition unite in calling for rail container incentive scheme

Freight and logistics groups have called out the NSW government’s undermining of its own mode share target for containers carried by rail into Port Botany.

The Australian Logistics Council (ALC), Freight on Rail Group of Australia (FORG), Freight and Trade Alliance (FTA), and the Australasian Railway Association (ARA) along with individual port rail freight operators are questioning the wisdom of allowing more high productivity vehicles on Sydney’s roads.

“By incentivising HPVs, government is perversely derailing their own policy to grow rail’s mode share target – at a time when Sydneysiders want safer roads and less traffic congestion and vehicle emissions,” said ALC board member and Qube managing director Maurice James.

The NSW government has been issuing permits for high productivity vehicles to access the Sydney road network and major motorways such as WestConnex. By allowing trucks which can carry two containers to travel within Sydney, this reduces the competitiveness of rail for the metro import container market.

The NSW government has set itself the goal of having 28 per cent of the container trade through Port Botany being handled by rail by 2021, however just 17.6 per cent is currently hauled by rail.

Instead of having each mode compliment each other, with rail for longer distances and trucks for the first and last mile, road transport was monopolising container traffic, with impacts on the local community, said FORG chair and Pacific National CEO Dean Dalla Valle

“Today, many HPVs are doing ‘every mile’ of the freight task in Sydney, placing heightened pressure on traffic congestion, road safety and vehicle emissions,” he said.

Dalla Valle advocated for a measure such as the Western Australian government’s Port of Fremantle container incentive scheme was needed in NSW.

“Prior to introduction of the incentive scheme at the Port of Fremantle in 2006-07, rail mode share was a meagre two per cent. The scheme underpinned growth of rail’s mode share which is now above 20 per cent – the highest in the country,” said Dalla Valle.

Director of the FTA and secretariat to the Australian Peak Shippers Association Paul Zalai said that governments should encourage importers to use rail services.

“Governments must maximise port assets and manage our trade gateways through incentivisation of rail usage for imports to metropolitan sites and importantly, streamlined connectivity to regional areas to cost effectively reach export markets.”

ARA CEO Caroline Wilkie said communities would be feeling the brunt of the lack of rail transport.

“The balance has tipped so far we run the risk of Sydney’s roads being over-run with trucks unless there is urgent action to use more rail.”

ALC

Improving rail’s share of freight task starts with policy settings: ALC

CEO of the ALC Kirk Coningham writes that significant efficiencies can be found without massive spending.

Among the many disruptions wrought by the COVID-19 pandemic was the need to defer the 2020-21 Commonwealth budget, which will now be handed down some five months later than originally scheduled.

As always, ALC made a submission to the federal government ahead of the originally planned date. This was well before the full effects of the pandemic reached Australian shores and our industry faced the challenge of keeping essential supplies moving, despite unprecedented restrictions on movement and the effect of state and territory border closures.

All of us – governments, industry and the wider community – have learned lessons as a result of the COVID-19 experience. Perhaps more than ever before, communities now understand the very real and immediate impact that supply chain disruption can have on their daily life.

As consumers witnessed empty supermarket shelves as a result of unprecedented demand caused by the COVID-19 pandemic, there is a clear need to ensure that logistics operators are given the flexibility to they need to meet increased and changing demand.

This is equally true right across the supply chain – from deliveries into supermarket loading docks through to the movement of freight trains across state borders.

Perhaps the single most effective government action taken during the pandemic to address supply chain disruption did not involve massive expenditure, but simply the removal of operational curfews through non- legislative ministerial action.

Industry has called for the removal of such operational restrictions over many years. With many of them suspended for the duration of the pandemic, both government and the community have been able to see the benefits.

As the Prime Minister himself noted in June this year: “Trucks were allowed to resupply along roads and during hours where they were previously banned. And the sun came up the next day. It was extraordinary.”

This goes to the heart of the key point ALC has made to the federal government ahead of this year’s Budget.

With the pandemic having placed the nation’s finances in a challenging position, this is the time to focus on regulatory reform that may not cost big money – but can nevertheless have a profound impact on supply chain efficiency.

The need for such regulatory reform was a key focus of ALC’s pre-budget submission in January – and the urgency of that task has been underscored in the supplementary submission provided to the federal government in August.

In the rail space, this includes supporting the development of a National Rail Plan that will finally establish a single set of consistent national laws to regulate the movement of freight by rail in Australia that address environmental regulation, workplace health and safety, workers’ compensation and drug and alcohol testing.

The COVID-19 pandemic and its associated border closures have put a spotlight on the disruption that can be caused by inconsistent regulatory approaches between jurisdictions. The upcoming federal budget is the place to start work that will finally make the changes needed to overcome such disruptions.

protocol

Protocol offers way to protect industry and communities

ALC CEO Kirk Coningham highlights how a united freight industry has achieved a common-sense protocol for border safety.

The COVID-19 pandemic has required all of us to deal with scenarios and situations that were hard or even impossible to anticipate.

Of course, the freight and logistics industry has long-held concerns about some of the complexities that arise from having to comply with multiple regulatory regimes as freight crosses the border from one state or territory into another. Yet the closure of those same borders at the onset of the pandemic has forced the industry to confront and adapt to a whole new set of requirements.

The fast-moving nature of the COVID-19 challenge has also required governments and regulatory authorities to move speedily – and in some instances, this has led to the imposition of rules that are simply incompatible with the realities of freight transport.

Over the past several months, ALC has worked with its members, regulatory authorities and allied industry groups to build support among governments for a nationally consistent approach that will protect the health of the freight transport sector’s workforce and the wider community, while still ensuring that our industry can get the job done.

Those efforts bore fruit in late July when the National Cabinet gave its endorsement to a Domestic Border Control Freight Movement Protocol.

The protocol has been endorsed by chief health officers from all state and territories and clearly outlines measures that all states and territories agree will allow freight to move safely and efficiently across borders.

This includes a number of common- sense measures which ALC has pursued throughout the pandemic. These include the ‘waive through’ of freight vehicles at borders, standardising the duration of border crossing permits, mutual recognition of COVIDsafe work plans developed in other jurisdictions, and not requiring rail crews to quarantine or self- isolate when crossing borders if they have not developed COVID-19 symptoms.

Obtaining agreement to this protocol has only been possible because our industry has been able to clearly and convincingly demonstrate its commitment to COVIDsafe practices to governments nation-wide.

In particular, the members of our Safety Committee provided crucial support by offering compelling examples of the extensive efforts being undertaken by freight and logistics companies to make their operations COVIDsafe. This gave policymakers added confidence that our industry takes its obligations seriously

and understands the importance of COVIDsafe behaviour in protecting the wider community. The importance of having COVID testing available for freight workers frequently crossing borders is also recognised, and the protocol calls for states and territories to offer ‘pop-up’ testing facilities in appropriate locations.

Importantly, the protocol also requires authorities to consult with industry to understand the effect and impacts of potential changes ahead of any new directions being been put place.

It will be vital for governments to follow this requirement if we are to avoid some of the confusion that has been witnessed throughout the pandemic, especially in instances where border requirements were changed with inadequate notice to industry.

Inland Rail

Wrong time for delays on Inland Rail

All parties should respect the outcome of the latest reviews into Inland Rail, and get on with the transformational project, writes ALC CEO Kirk Coningham.

In mid-June, Prime Minister Scott Morrison delivered a major economic address in which he announced that to hasten the pace of Australia’s post-COVID-19 economic recovery, the federal government would move to cut approval times for projects under the Environment Protection and Biodiversity Conservation Act 1999.

At the end of 2019, approval processes associated with this act were taking an average of 90 days – the Prime Minister has committed to reducing this to 30 days by the end of 2020.

At the same time, the Prime Minister also unveiled a list of 15 major infrastructure projects nationally that are on what he termed the “fast track” for expedited approval under a bilateral model agreed between federal, state, and territory governments.

At the top of this list was the Inland Rail project, which regular readers of Rail Express will know is one of the most iconic freight infrastructure projects ever undertaken and will play a significant role in modernising our supply chains. Inland Rail will allow a transit time of 24 hours or less for freight trains between Melbourne and Brisbane via regional Victoria, New South Wales, and Queensland.

Yet, with construction on the project already underway, some groups are now attempting to have changes on the Border to Gowrie section of the route in Queensland.

Despite the fact that extensive and independent analysis of corridor options has previously confirmed the route chosen in 2017 is the best option, there is now a further review taking place at the request of the federal government.

The whole point of constructing Inland Rail is to provide a safe and efficient freight rail link for Australia’s east coast that permits a transit time of 24 hours or less for freight between Melbourne and Brisbane. Altering the route to the more complex one being advocated by some will make travel times longer and will make construction a more complicated and costly exercise.

This latest review process seems to run counter to efforts to expedite the construction of Inland Rail, and unlock the economic, employment and regional development opportunities that the project offers to areas that have been hit hard by the COVID-19 pandemic.

The enormously successful Inland Rail Conference presented by ALC and the Australasian Railway Association (ARA) in Toowoomba last year clearly demonstrated a high level of support for the project from the communities along its proposed alignment. Many local businesses have already been making investment decisions based on the route chosen in 2017.

Eleventh-hour attempts to alter the approved route of the Inland Rail project are causing uncertainty for investors and local communities, placing a brake on employment growth and regional development opportunities at a time the economy can least afford it.

Inland Rail has been talked about for decades. The last thing local communities or the economy need now is for those benefits to be placed at risk by endless reviews of modelling that has already been thoroughly examined and re-examined.

Once this latest review of the is concluded, it is incumbent on all parties to respect its outcomes and turn their attentions to expediting construction. That way, this once-in-a-generation freight rail project can start delivering benefits for local workers, businesses, exporters and consumers that are now needed more than ever.

Rail line at Port Botany. Photo: Sydney Ports Corporation / Brendan Read

Botany duplication and Cabramatta loop approved

The NSW government has given planning approval for the Botany Rail Duplication and the Cabramatta Passing Loop.

Both projects will be delivered by the Australian Rail Track Corporation (ARTC) with shortlisted contractor expected to be invited to tender shortly, Peter Winder, group executive Interstate Network at ARTC.

“These two landmark projects will encourage a shift in freight share from road to rail, to help rail carry more of Sydney’s freight growth and associated traffic congestion and support growth in the containerised freight task and port-shuttle rail services between Port Botany and intermodal terminals such as at Enfield, Moorebank, Minto and Chullora.”

The project will allow for freight trains up to 1,300 metres in length to pass between Cabramatta and Warwick Farm and enable Port Botany to handle increasing freight loads by rail, said Minister for Transport and Roads Andrew Constance.

“As the state’s largest container port, the efficient operation of Port Botany is critical. Forecasts predict a whopping 77 per cent increase in the amount of freight it handles from 14.4 million tonnes in 2016 to 25.5 million tonnes by 2036.”

The dual projects were one of a number of NSW rail projects that received fast-tracked planning approvals. According to Minister for Regional Transport and Roads Paul Toole the projects will allow more freight to be carried by rail.

“These projects are crucial because more freight is moved on rail lines and congestion is busted with fewer trucks on our roads,” he said.

“This project will not only provide new rail infrastructure but will inject around $400 million into the economy and create around 500 local jobs during construction.”

The Cabramatta Loop will be completed by mid-2023 and the Botany Rail Duplication will be completed by late 2024.

Australian Logistics Council CEO Kirk Coningham welcomed the announcement.

“Duplicating the remaining 2.9-kilometre single track section of the Botany Line between Mascot and Botany and constructing a new passing loop on the Southern Sydney Freight Line at Cabramatta will inject greater efficiency and capacity into the freight network and help to meet NSW’s growing freight demands,” he said.

“The delivery of these projects by the Australian Rail Track Corporation will further encourage freight owners to transport more containers by rail and will build on significant investments NSW Ports has already made to increase port-side rail capacity.”

Code commits states and territories to keep freight flowing

State, territory and federal infrastructure and transport ministers have released an enforceable code for the border control of freight movements; however, differences remain.

The code follows the previously released protocol and specifies the measures that states and territories will enforce to ensure freight can keep moving during COVID-19 while ensuring the virus does not spread.

The code aligns previously disparate measures that individual states and territories had adopted, particularly after the outbreak of a second wave of COVID-19 in Victoria, said Assistant Minister for Road Safety and Freight Transport Scott Buchholz.

“Aligning state and territory measures through this Code will help reduce delays in the supply chain, ensuring our freight operators can keep moving safely and efficiently.”

Under the code, states and territories will not require freight workers, including rail crew, to self-isolate when travelling across a border, although workers are advised to keep contacts to a practical minimum.

Other common measures include the requirement for a valid border permit and record keeping by the driver and operator of a freight train of recent contacts.

Australian Logistics Council CEO Kirk Coningham said that the alignment of requirements across borders was welcome.

“The confirmation that workers will not need to go into quarantine or formal self-isolation in any jurisdiction is also especially important in minimising disruptions to freight movement. ALC also welcomes the Code’s commitment to the mutual recognition of COVIDSafe workplans between jurisdictions,” said Coningham.

Testing requirements remained an area of difference. While Queensland has mandated tests on a seven day rolling basis for those coming from hotspots, Victoria will not provide testing for asymptomatic freight workers. In WA, tests are mandated on a seven day rolling basis for those crossing the border and in NSW tests are encouraged. Upon arrival into a state, testing requirements also differ, with testing mandated within 24 hours in South Australia and within 48 hours after entering WA.

Conginham said that the federal government may be required to step in to assist testing in Victoria.

“With the extraordinary pressures on Victoria’s testing capacity at present, it may be appropriate for the Federal Government to provide the state with some additional support to help make this happen, in the interests of national supply chain efficiency,” he said.

“ALC remains deeply concerned that not providing testing for asymptomatic drivers in Victoria will make it extraordinarily difficult for freight workers to meet border requirements imposed by other states and could lead to supply chain disruptions.”

Chair of the Freight on Rail Group (FORG) Dean Dalla Valle also welcomed the protocol and code and the efforts of governments to enable freight to continue moving on rail.

“The only additional measure our sector would strongly recommend in the coming days and weeks is for extra resources to be thrown at more widespread and rapid COVID testing; albeit we appreciate testing regimes in states like Victoria have understandably been stretched to the limit,” he said.

“It was therefore very pleasing to see the new national protocol includes states and territories providing pop up testing facilities at rail freight terminals/depots where they can be accommodated.”

Deputy Prime Minister and Minister for Infrastructure, Transport and Regional Development Michael McCormack said the crisis had shown how Australia relied upon the efficient movement of freight.

“The work our freight operators do keeps our shelves stocked and our local economies running,” he said.

“Streamlining the process for crossing borders will make life easier for our freight operators.”

Dalla Valle said that government had to be brought up to speed on the requirements of rail freight.

“For instance, in any given day, numerous train crews and support staff must cross state borders in light vehicles to meet interstate services or return to home base after a shift,” said Dalla Valle.

“For example, a train crew based in Broken Hill will regularly cross in South Australia by car to relieve another crew on the Trans-Australian Railway, and vice-versa. Similarly train crews in south western NSW often cross into northern Victoria by car to meet bulk grain services on the Murray Basin Rail network.”

These realities have led train crews to keep themselves isolated and follow strict hygiene practices. This has enabled rail to continue to move freight across borders and minimise the spread of COVID-19.

States must honour national border protocol say ALC, ARA

Inconsistency in the application of border controls for freight movements are creating delays and confusion for rail freight operators.

After the national cabinet endorsed a national protocol for freight movement over closed borders on July 24, which recommended that government agencies should consult with industry in relation to border controls, changes have occurred without consultation, said Australian Logistics Council (ALC) CEO Kirk Coningham.

“The lack of consultation directly contravenes the national protocol that all state and territories agreed to.”

Coningham said that a lack of consistency was creating confusion.

“It is especially concerning that some jurisdictions have now mandated negative COVID-19 test results for drivers coming from Victoria, yet Victorian authorities are explicitly discouraging anyone who is asymptomatic from obtaining a COVID-19 test,” he said.

“This leaves freight vehicle drivers travelling interstate from Victoria in an impossible position of being unable to comply with the requirements of one government because of the instructions given by another.”

Currently, South Australia is requiring those providing commercial transport and freight services who travel from Victoria to have a COVID-19 test within the last seven days of crossing the border.

Australasian Railway Association (ARA) CEO Caroline Wilkie said that consistency was vital to enable the efficient operation of supply chains.

“Delays at the border or differing approaches across the country frustrate those efforts at a time when we rely on our rail freight network more than ever.”

The national protocol sets out that COVID-19 tests should be made available to rail crew, and that routine testing should be required for those planning on entering or leaving hot spots. States and territories should also provide pop-up testing facilities that do not add undue time to the journey.

Wilkie said that delays at the border can have a significant impact on freight operations.

“It is essential state and territory border restrictions account for the vitally important role of the rail freight sector and make sure operators have consistent protocols to follow as they travel across the country.”