Carrying the Freight:
The Trucking Industry Perspective
13 June 2007
Stuart St Clair Chief Executive
Australian Trucking Association
Australian Trucking Association
• Established in 1989
• Peak representative body for trucking in Australia
• A federation of state and sector associations and major logistics companies
• Our mission:
“To unite and represent a professional and safe Australian trucking industry.”
Industry Creates National Wealth
• An essential industry. We create wealth & improvement of national standard of living
• We represent around 3.4% of the GDP of Australia. Around $30 billion.
• Over 180,000 employees in the hire and reward business of transport & over 49,000 transport operators. More than 250,000 people engaged in supporting industries
• Trucking industry of world standard
Major Freight Task
• The doubling of the freight task a major challenge for the trucking industry
• Government forecasts Australia’s road freight task to more than double between 2000 and 2020, Source: BTRE Report 112, 2006
• Doing nothing will lead to increased congestion on road and rail networks
Road Freight Growth
• Current estimates show only 9-15% of non bulk freight is contestable between road and rail
• In Australia; about 810,000 kms of roads & about 44,000 kms of rail
• ATA supports a competitive rail industry, assisted independently of road
• We oppose increased taxes and charges on road freight operators to make rail more competitive
Trucking Pays Its Way
• Trucking more than pays its share in Australia
• Trucking pays $1.8b for roads towards construction and maintenance expenses of just $1.62b
• The industry faces a new heavy vehicle charges determination
• New pricing system to be implemented by July 2008
Trucking Industry’s Challenge
• The federalist system of government
• COAG initiated Productivity Commission Inquiry into Road and Rail Infrastructure Pricing
• ATA’s Productivity Commission Submission:the further you drive, the more tax you pay, and the heavier the load the more tax you pay
• Focus needs to be on safety and getting the
freight task accomplished. More flexibility driving/work/rest
Safety
• Trucks are not involved in 90% of fatal accidents. Where trucks are involved, two thirds are not the responsibility of the truck driver
• Australian Transport Safety Bureau figures: 2000-2005 reduction of 22% in fatal crashes involving articulated trucks
• National Transport Commission study ( 2006) noted 74% of drivers surveyed felt no pressure to speed & company policies were effective
Council of Australian Governments (COAG)
• COAG, a council formed by state premiers and the federal government agreed last February to:
– Harmonise & reform rail and road regulation within five years
– Strengthen and coordinate transport planning/project appraisal processes
– Reduce current and projected urban transport congestion… informed by review… options for managing congestion focussing on national freight corridors
Productivity Gains
• Productivity improved with B-doubles = 30-40% increase
• Intermodal terminals Important for logistics providers
• Higher Mass Limits Network (HML)
In a country the length and breadth of Australia, HML network is:
– Essential for industry– Uniformity among states is crucial
Productivity Gains
• Industry uses cutting edge technology for vehicles such as GPS management tools; needs to be convinced re Intelligent Access Program (IAP)
• IAP needs to be used for productivity rather than as a punitive device
• Linking of IAP to the HML in NSW is a new requirement
• Auslink
Productivity Gains
• Need for productive vehicles;
• B-Triples, quads, double road
trains.
Employment Challenges
• National skills shortage in Australia has affected the trucking industry
• Data shows the average truck driver in Australia is 52 years of age
• Harsh enforcement
• We are struggling to replace the natural attrition
Solutions?
• Promote our industry. A great career in an attractive industry
• More programs in schools
• Should also attract mature workers eg Ready for the Road
• Limited scope in overseas recruitment & likely costs $15000+
Conclusions
• Appreciate being invited today
• Close relationship with your association
• Many common fronts where industry can relate.
• There needs to be more opportunities to meet in a spirit of cooperation; relationships need to be fostered and grown
Australian Trucking Association
Thank you