16 November 2015

Africa Australia Infrastructure Conference

Michael Kilgariff, Managing Director, Australian Logistics Council

Corporate members

National sponsors

Associates

Australia’s freight logistics industry

• Australia’s rising freight task is expected to:

– Double between 2010-2030

– Nearly triple by 2050

• Between now and 2050

– Trade between African countries will increase by 715% between now and 2050

– International freight transport volumes are expected to grow by 200%

Australia’s freight logistics industry

• Represented 8.6% of the nation’s GDP in 2013

• Directly contributed $131.6 billion to Australia’s economy in 2013.

• A 1% improvement in efficiency will yield a $2 billion-a-year benefit

National Land Freight Map

The National Freight Task

• Over 40,000 kilometres of railways across Australia

• Iron ore and coal together account for over 80% of all rail freight

• By 2030 the total national rail freight task is expected to nearly double its 2010 level

• The Inland Rail Project will effectively bypass the congested Sydney rail network– Congestion will cost every household and business $16 billion this

year, increasing to $37 billion in 2030

• Sydney– Congestion will cost $6 billion this year and will more than double by

2030

• Melbourne– Congestion will cost $4.5 billion this year

• Brisbane– Will see an escalation from $2 billion this year to $6 billion in the next

15 years

Congestion in our cities

Intermodal Terminals

• Key components of the logistics supply chain

• Short Haul Rail: transporting freight from the port to an inland intermodal terminal for sorting, consolidation and on-forwarding

• Moorebank Intermodal– Will include facilities for tranferring interstate freight between rail and

road

– Enable containers moving between Port Botany and South-West Sydney to undertake much of their journey by rail

ALC Submission to IA Infrastructure Audit

• Inland Rail

• Auditing the National Land Freight Strategy

• Acceleration of Road Reforms

• Prioritise the efficient use of High Productivity Vehicles

• IA to champion use of High Productivity Vehicles

• Allowance of sufficient road connections to ports to achieve optimum capacity

• Analysis of technological improvements and economic return

• Encouragement and prioritisation of private sector investment in logistics infrastructure

Conclusion

• Freight efficiency matters for all Australians

• Without a long term plan for Australia’s freight future, we will miss an opportunity to build a stronger economy