ALC lobbies for freight to receive JobKeeper subsidy

The Australian Logistics Council (ALC) has called upon the federal government to extend the JobKeeper Payment scheme to freight and logistics businesses as they are businesses providing essential services.

In a letter to Treasurer Josh Frydenburg, CEO of the ALC Kirk Coningham wrote that while freight and logistics businesses, including freight rail operators, have been deemed an essential service, they have missed out on government support for businesses.

“ALC is concerned that the blunt application of a reduced turnover test at 30 per cent for small and medium businesses and 50 percent for larger businesses to qualify for the JobKeeper Payment fails to adequately account for [freight and logistics businesses],” wrote Coningham.

While rail businesses and organisations welcomed the announcement of stimulus in March, some were concerned that the threshold would limit their ability to access the scheme and ensure workers who may need to be stood down are continued to be paid.

Coningham outlined that the particular circumstances of the freight sector means that stimulus is required.

“The reality is that most businesses within Australia’s freight and logistics sector operate on tight margins that flow from high fixed costs associated with the purchase and maintenance of freight vehicles, equipment and infrastructure.”

Since the coronavirus (COVID-19) pandemic has hit Australia, freight businesses in the rail sector have been called upon to ensure that essential goods such as groceries continue to get on the shelves of supermarkets around Australia. Rail has continued to play a role as borders have been closed and in some areas has seen up to a 15 per cent increase in services.

Coningham wrote to Frydenburg that if businesses such as these were allowed to fail there would be significant consequences.

“If major freight transport businesses are forced to close due to financial pressures arising from COVID-19, there will be a range of deleterious consequences for the entire supply chain, and the ability of Australian households to access essential goods in a timely fashion could well be threatened. Moreover, there would also be significant consequences for Australian exporters, who rely on freight and logistics service providers to take their goods to market.”

The ALC recommended that essential service providers be eligible for JobKeeper Payments automatically, that if a threshold is imposed it should be set at 15 per cent for businesses providing essential services, and ensure that the first two JobKeeper payments are done quickly.

How to get the most out of digital marketing during COVID-19

Zelda Tupicoff, COO, Prime Creative Media, outlines the two key drivers marketers should focus on in aligning their digital strategy in the face of the coronavirus (COVID-19) crisis.

It’s not uncommon for B2B companies to rely heavily on in-person meetings and trade events in their sales process. Not many people buying industrial equipment, commercial vehicles, or medical devices will do a quick Google search and click ‘add to cart’ when spending tens of thousands of dollars on these high-value items.

The journey starts months, and even years, before the purchase. Your future clients have read about you in trade media, built up brand recognition overtime, informed themselves about what’s in the market. None of this has changed in the COVID-19 crisis, so it’s important not to abandon the long-term marketing strategy that takes into account the full buyer journey.

What has changed is the direct lead generation done in person at meetings and trade events. Sales teams find themselves at a loss without being able to get out there and find leads. It’s this part of the sales process where you should now be directing your digital marketing efforts. Forget about traditional trackers like click rates, overall traffic, and impressions. These do little to help your sales team right now. Instead, direct your efforts into generating quality leads.

In working with hundreds of B2B companies, our clients have found the most success in generating leads when they focus on these two drivers.

Driver number one – quality traffic
Many companies marketing high value products and services make the mistake of investing too heavily in Google Ads and search engine optimisation (SEO), assuming that the more traffic there is to a website, the more sales they will make. The challenge is, there is no guarantee that the traffic will be of quality and will lead to sales. Even the most carefully thought out search words don’t assess whether a person is a real decision maker, if they are in a relevant industry, and if they are ready to purchase. It’s also an expensive exercise, with the most popular search terms attracting the highest price, and that price only ever goes up as those terms get more traffic.

You can achieve better results by purchasing some traffic in partnership with a reputable industry resource of engaged readers. This can look like: promoting your websites and whitepapers as digital display ads, direct solus EDM mailouts, sponsored content, and links on articles which can provide ongoing SEO. You should pick a publication that has the same readership as your ideal client. The quality of leads for your sales team is more important than the volume when you want to convert those leads to sales.

You can achieve even better results by combining a qualified audience with an investment in quality content that drives organic traffic. By providing decision makers with high quality, targeted resources, you have a much better chance of attracting the right people to your site. If you’re selling conveyor belts, work with a quality content marketing writer offering tips on how to choose the right conveyor belt. The only people that will read the content are those who are looking to purchase. Even if the article only attracts a fraction of the traffic that it would from purchasing the words “conveyor belt” on Google, it’ll lead to many more qualified leads. Importantly, at a time when we’re all looking closely at cutting costs, it’s a one-off investment that will keep delivering.

Driver number two: quality data collection/lead generation
Once you get people to your site, it’s imperative that you collect the data of who is visiting. Don’t rely on contact us forms, or simply having your phone number and email displayed everywhere, unless your strategy is for your sales team to wait for incoming calls and emails. If your sales team is to make outgoing calls and emails, you need to give them a list of qualified leads.

To do this, you need to use a customer relationship management (CRM) tool that can integrate with an online form to capture the data of people visiting your website, including their emails and phone numbers. Because people are reluctant to give them up, you need to give them a reason, with a piece of gated content. It could be a special offer, an informational video, a guide to purchasing, or a technical whitepaper. Ensure that what you offer is of value by working with a specialist trade journalist or content marketing expert. You’ll immediately lose trust if you don’t come through with a quality piece. Also, by offering quality content, when your sales team goes to make outgoing calls, the prospective lead will already have had a good experience with your company.

Download this complimentary guide on the traffic and lead generating tools Prime Creative Media have to offer.

Civil contractors have “significant capacity” to support economy

Civil contractors are prepared to make significant investments in employment, if government infrastructure projects are fast tracked.

According to a new survey from the Civil Contractors Federation (CCF), Australia’s civil construction industry has the capacity to restart the nation’s economy following restrictions imposed to limit the spread of coronavirus (COVID-19).

According to Chris Melham, CEO of CCF, there is an opportunity for smaller companies to get involved.

“The survey results demonstrate civil construction companies, particularly those operating at the tier 2, tier 3, and below have significant capacity to assist the federal government achieve its goals of supporting the economy and to keep people employed during these unprecedented economic conditions,” said Melham.

The survey gained responses from 228 companies across each state and territory, and while respondents noted that COVID-19 had a negative effect on their business, 74 per cent said they had a capacity for projects of up to $10 million. 17.5 per cent indicated a capacity to start projects between $10 and $50m, and 8.3 per cent said they were ready to begin projects worth more than $50m.

The CCF highlighted that this meant there was a great capacity for firms to begin work on smaller projects, or larger ones broken down into separate works packages. In its recommendations, the CCF encourages the federal government adopt a procurement policy that disaggregates major project to allow tier 2 companies to tender through joint venture arrangements.

The CCF also recommended that the federal government bring forward the 10-year $100 billion infrastructure investment fund and use debt to increase the fund’s size.

“It is important however that these projects are spread across as many tier 2, tier 3 and below companies across Australia to ensure widespread benefits can flow from any stimulus investment, particularly in rural and regional communities where infrastructure investment can deliver a significant multiplier effect to those local economies in the form of employment, training and community spending,” said Melham.

“The survey sends a powerful message to the federal government that the civil infrastructure sector is ready to lead the economic recovery if governments inject more money into the sector for new projects.”

The survey and recommendations follow the CCF calling upon the federal government to do more to support the smaller tier 2 and 3 civil construction companies, who have sat above the financial threshold measures announced so far. In a statement on April 3, Melham noted that in the absence of worker retention measures, civil contractors need to have their outstanding claims paid.

“The industry’s viability and that of its workers during COVID-19 relies on prompt payment by public procurements agencies and I therefore urge the federal government to develop a ‘supplier payment policy’ for all public bodies involved in federally funded civil infrastructure projects and to impose that policy as a matter of urgency.”

CCF recommended that the policy involve the immediate payment of invoices, the continuation of normal payments even if service delivery is disrupted until June 30, supporting supplier cash flow, and reviewing tender requirements.

NZ City Rail Link ready to re-start construction

The New Zealand government has approved Auckland’s $4.45 billion City Rail Link (CRL) to resume construction after the COVID-19 lockdown.

Sean Sweeney, CEO of New Zealand’s biggest infrastructure project said his team is champing at the bit for a rapid re-start.

“We’re already inspecting all CRL sites and making them ready for a safe return to work next week,” he said.

Work will resume on Tuesday, April 28 at all CRL sites including the C1 contract at Britomart and LowerQueen Street, C2 in Albert Street, C3 at Aotea in central Auckland, Karangahape Road and at MtEden, and C8 on the southern rail line at Ōtāhuhu.

“Because of our size we’re aware of the big role we have in quickly getting the economy moving again, supporting the contracting and infrastructure industries and seeing our workers safely back on the job,” Sweeney said.

He said the paramount priority will be keeping workers and the wider community safe.

“We had some pretty strict safety measures in place before the lockdown, but next Tuesday’s return to work will be different,” he said.

Sweeny said there will be additional constraints including restricted access to sites, physical distancing, protective clothing and sanitising and cleaning regimes.

“They will all contribute to a successful re-start in the new COVID-19 work environment, and, just as importantly, they will help ensure our workers get home to family and friends virus-free when they finish their shifts,” he said.

Sweeney said it is too early to measure if COVID-19 has impacted on project costs or construction timetables.

“It may be months before we know that once the economy has settled down a bit and we have a clearer picture on the availability of workers, and what sort of shape some of our suppliers both here and overseas are in,” he said.

“I know we have a small team of workers waiting in France because there are no flights here at the moment – that’s not a lockdown issue that‘s a wider international COVID-19 issue.

“A big plus for the project was ability of City Rail Link Ltd (CRL Ltd) and our Link Alliance contractors to be able to keep working on construction and design programmes during the lockdown – time wasn’t wasted and that’s been a big boost for our re-start.”

The project team is investigating opportunities to accelerate some work, including more shifts of work and the use of extra plant and machinery.

“Those ‘shovel ready’ ideas are still in the planning stages but our contractors will be working hard – and safely – to get CRL delivered as quickly as possible for Auckland,” Sweeney said.

Phil Goff, Auckland Mayor, has welcomed the government’s announcement to resume construction and CRL’s re-start news.

“As one of Auckland – and New Zealand’s – biggest and most important infrastructure projects, the City Rail Link will play an important role in the post-COVID-19 economic stimulus,”Goff said.

“It’s critical that CRL construction resumes quickly to help kick start the economy, get construction and infrastructure industry employees back into work and limit as much as is possible the lockdown’s impact on construction timeframes.”

In the meantime, City Rail Link is in the search for an inspiring woman’s name for the project’s Tunnel Boring Machine (TBM).

The TBM is due to arrive from China later this year in sections and reassembled at the Link Alliance construction site in Mt Eden.

The Link Alliance will start tunnelling with the newly named TBM early next year, excavating 1.6 kilometres from Mt Eden to the Aotea Station in central Auckland to connect with the tunnels already constructed from the Britomart Station.

“Tunnelling tradition dictates a TBM cannot start work until it has been given a female name, a sign of good luck and safety for the project ahead. Our search seeks to recognise the many amazing women New Zealand has produced,” Sweeney said.

Shortlisted names include Antarctic scientist Dr Margaret Hayward, transgender politician Georgina Beyer, and Maori welfare and lands champion Dame Whina Cooper.

Rail maintenance, upgrades getting ahead of schedule

Major rail projects are completing extra works while Australia and New Zealand are under lockdown measures.

In Sydney, a number of projects are taking advantage of lower commuter numbers and relaxed regulations around work hours to progress ahead of schedule.

In Parramatta, work on the light rail project is running seven days a week after the NSW government introduced changes to legislation to expand standard construction hours on weekends and public holidays. Works are being conducted from 7am to 7pm Monday to Friday, 7am to 6pm on Church St, and from 7am to 6pm on Saturdays, Sundays, and public holidays.

According to a Transport for NSW (TfNSW) spokesperson, all works are being done to minimise the impact on the local community.

“All reasonable measures to reduce noise impacts will continue to be implemented, including using the quietest equipment possible, placing machinery and vehicles as far away from properties as possible, conducting high noise generating activities during weekdays where possible, and implementing respite periods as required.”

In Parramatta, disruption is being minimised by scheduling utility works in non-peak periods, using sound blankets, directing lighting towers, and turning off equipment when not in use.

With the Sydney CBD experiencing extremely low traffic volumes during the lockdown period, work on the Sydney Metro City & Southwest has been able to increase. Lane closures previously only possible on weekends have been implemented on weekdays and extended work hours are in place at Central Station.

In Chullora, the construction of the new Digital Systems facility has extended hours over one weekend and will use extra hours where necessary.

Elsewhere in NSW work hours on the New Intercity Fleet maintenance facility have been extended to 7am to 6pm, seven days a week. Extended working hours are also being looked at for station accessibility upgrades at Fairy Meadow, Mittagong, Hawkesbury River, Wyee, and Waratah.

“All community members and stakeholders are thanked for their patience as work continues on important transport infrastructure across NSW,” said the TfNSW spokesperson.

Across the Tasman, KiwiRail has been conducting a significant maintenance program on the Auckland network. Lower commuter numbers during lockdown have allowed KiwiRail to lay over four kilometres of new rail on the Eastern line, said KiwiRail chief operating officer, Todd Moyle.

“We are able to use this time to carry out a great deal of work in a short timeframe. Normally this work would need to be completed during weekends across several months.”

Works will continue until Monday, April 27 and include replacement of worn rail between Glen Innes and Sylvia Park. The Eastern line not only serves commuters but freight rail services from the Port of Auckland.

“We’ve worked closely with Auckland Transport to arrange for this work to be done now so there will be a more reliable network for commuters once COVID-19 levels fall and businesses reopen,” said Moyle.

The slowdown in traffic on the commuter network allows a rare opportunity for continuous track work that would normally be done at weekends or overnight to minimise disruption.

“We’re doing this work now, while we have the opportunity, to avoid future disruptions to commuters and to ensure they get a great service once they return to work,” said Moyle.

Physical distancing measures are in place at all work sites.

Daytime freight services are being rerouted via Newmarket while commuter services are replaced by buses.

Thales ensuring capability and safety

Thales is committed to the continued delivery of capability to our customers while minimising any risk to the safety of our employees and the broader community.

In early March, Thales implemented social distancing and enhanced hygiene measures across all of our sites. At production facilities a number of measures were implemented including: staggered shifts, staggered breaks, closure of canteen facilities, expanded break rooms, increased hand washing and the cleaning of rooms between use. Concurrently all non-production staff moved to ‘work from home’. All sites have also identified and secured a bio-cleaning company for deep cleaning as necessary.

We are closely monitoring impacts on our supply chain, actively seeking advice from key suppliers to ensure we have the ability to mitigate any potential impacts. Thales takes seriously our responsibility to maintain employment and supply chains through the current crisis and have taken a number of steps to assist our partners as the situation has evolved.

Notice to proceed issued for HS2

The UK government has issued a ‘notice to proceed’ for companies to begin work on High Speed 2 (HS2).

The decision ensures that construction will go ahead on the controversial project, and confirms that work will progress while the country grapples with the coronavirus (COVID-19) and associated lockdown measures.

The ‘notice to proceed’ is the formal approval for the construction of stage one of the project, from London to the West Midlands. This stage project is split into four work packages awarded to four separate joint ventures. Awarded in 2017, the joint ventures are:

  • SCS Railways (Skanska Construction UK Ltd, Costain Ltd, STRABAG AG);
  • Align JV (Bouygues Travaux Publics SAS, a subsidiary of Bouygues Construction, Sir Robert McAlpine and VolkerFitzpatrick, a subsidiary of VolkerWessels UK);
  • EKBF JV (Eiffage Genie Civil SA, Kier Infrastructure and Overseas Ltd, BAM Nuttall, Ferrovial Agroman); and
  • BBV JV (Balfour Beatty Group Ltd, VINCI Construction Grands Projets, VINCI Construction UK Ltd, VINCI Construction Terrassement).

HS2 Minister, Andrew Stephenson, said that the decision is an assurance to the rail industry.

“Following the decision earlier this year to proceed with the project, this next step provides thousands of construction workers and businesses across the country with certainty at a time when they need it, and means that work can truly begin on delivering this transformational project.”

HS2 Ltd, the public company overseeing HS2, estimates that 400,000 supply chain contracts will be created in phase one of HS2.

“In these difficult times, today’s announcement represents both an immediate boost to the construction industry – and the many millions of UK jobs that the industry supports – and an important investment in Britain’s future: levelling up the country, improving our transport network and changing the way we travel to help bring down carbon emissions and improve air quality for the next generation,” said Mark Thurston, CEO of HS2 Ltd.

The UK government has also published the full business case for the project.

Operators meeting strengthening demand for rail freight

Figures released by Aurizon show that there has been greater demand for rail freight services in the March quarter of 2020.

The Queensland based business, which operates the Central Queensland Coal Network, as well as coal services in NSW and South East Queensland and national freight services, saw a 2 per cent increase in total above rail volumes when compared to the 2019 March quarter.

The growth was driven by a 12 per cent increase in bulk volumes, however coal volumes remained flat.

In an ASX statement, the company attributed the growth to strong volumes of iron ore from Mt Gibson, in the Kimberly and Mid West of Western Australia. However, the overall level of growth in the bulk sector was affected by the flooding of the Mt Isa line in the March quarter last year, which restricted volumes in that period.

The flat demand for coal volumes were affected by the ramp down of New Acland mine, industrial action and adverse weather in February and march which impacted the Centre Queensland Coal Network.

Aurizon also noted that there has been greater demand for freight rail services from Linfox due to increased demand for consumer goods during the coronavirus (COVID-19) pandemic. Aurizon has put in place extra preventative measures and there have been no cases of COVID-19 among Aurizon employees.

Linfox has been redeploying some of its workforce from affected operations to manage this demand for grocery products and the company is ensuring that supply chains remain open, said Linfox Logistics CEO Australia and New Zealand, Mark Mazurek.

“It is critically important that Linfox’s warehousing, road and rail networks continue to function safely and efficiently and that we can work collaboratively to deploy our people into new roles.”

Moving freight by rail is easing Australia’s strained supply chains

Australia’s rail network is ensuring the nation’s supply chain stays intact.

People are working around-the-clock to ensure safe passage for 1,800-metre freight trains carrying essential products for all Australians.

John Fullerton, ARTC CEO said in a recent interview that was broadcast on Sky News that transport companies are moving as much as they can to boost the flow of essential goods and services.

“Rail is no different, we move around five million tonnes across the continent from the eastern seaboard to WA and a lot of our product involves groceries and the hardware that sits on those supermarket shelves,” he said on Sky News.

Fullerton said the sector is crucial and rail freight movements on the ARTC network are up approximately 14 per cent due to the unprecedented demand for goods.

“The COVID-19 outbreak has sparked an unprecedented challenge for Australia’s freight and transport industry, with the country’s demand for critical supplies prompting a surge in rail freight,” he said.

“The rail freight sector has stepped up to ease Australia’s strained supply lines.”

The ARTC CEO leads a team of more than 1600 employees to manage and maintain 8500km of the national rail network.

ARTC employs more than 300 people at its Keswick headquarters in South Australia including network controllers who ensure coordinated passage for the country’s freight trains.

“Freight trains are playing a crucial role in Australia’s response to the coronavirus pandemic – and our frontline teams are really part of a group of workers making sure the economy and society is able to keep functioning during these difficult times,” Fullerton said.

Moving freight has been highlighted by the government as an essential service. Fullerton says the sector has never been more important “which is putting a lot of responsibility on our shoulders”.

However, in collaboration with rail freight customers, government, and industry partners, Fullerton said it’s been wonderful to see teams rise to the challenge to keep Australia’s supply chain intact and the nation’s economy moving.

“We’re really proud to be able to keep freight trains moving and do our bit for Australia, but like other essential service providers, these are testing times for everyone and there’s still a long road ahead,” Fullerton said.

The company also has teams maintaining rail assets across the nation, including in the middle of the Nullarbor, to help move vital freight to its destination.

“There’s definitely a lot of uncertainty surrounding COVID-19, but we’ll continue to work hard with our customers and partners to ensure supplies continue to ride the rails and get to where they need to be,” he said.

ARTC is continuing to implement strict hygiene protocols and preventative measures to protect the health and safety of staff and local communities in which it operates. 

International bodies urge continuity in public transport

An international group of transport organisations have issued a statement urging that public transport services must run despite coronavirus (COVID-19) mitigation measures.

The group includes the International Association of Public Transport (UITP), the International Union of Railways (UIC), United Cities and Local Governments, and the International Transport Workers Federation.

In the statement, the group calls for continuity in public transport, particularly so that key workers can keep getting to and from work.

“Ensuring continuity of public transport and local mobility services is essential for society and the economy. This will ensure that the health crisis does not turn into a social one.”

The statement identifies measures that need to be taken to ensure that services continue, including the provision and supply of protective equipment for transport staff and operators. This will ensure the health and safety of staff and passengers.

The statement notes that in some cities, patronage has dropped by 90 per cent, and this can have a devastating impact on operators which rely on passenger revenues.

The authors call upon governments to rapidly adopt measures including financial support which supports the preservation of jobs and the industries which supply the transport networks.

Some best practice measures outlined in the statement include providing accurate and up to date information, conduct regular deep cleaning and disinfection, adapting service levels to passenger demand while ensuring continuity, and providing dedicated services for healthcare personnel. The implementation of these measures is of benefit not only to the networks themselves, write the authors.

“Bearing in mind that passenger transport systems are vital to the regular functioning of the economy, these measures would not just support the sector in question but the whole of society.”