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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

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Carrying the Freight:The Trucking Industry Perspective13 June 2007Stuart St ClairChief Executive Australian Trucking Association
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
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
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
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 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
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
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
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 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 gains1
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 gains2
Productivity Gains
  • Need for productive vehicles;
  • B-Triples, quads, double road

trains.

employment challenges
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
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
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