australian logistics council (alc) freight transport and logistics … · 2019. 3. 3. · changing...

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ANNUAL REPORT 2018

MARCH 2019

DELIVERY

BUSINESS

TRANSPORTSUPPLY

LOGISTICS

ABN 231 31 860 136

MESSAGE FROM ALC CHAIR, PHILIP DAVIES 1

MESSAGE FROM CHIEF EXECUTIVE OFFICER, KIRK CONINGHAM 3

ALC MEMBERS FEBRUARY 2019 5

2018 ALC BOARD 6

ABOUT US 8

ALC EVENTS IN 2018 12

ALC FORUM 2018 12

ALC SUPPLY CHAIN TECHNOLOGY SUMMIT 14

ALC DIALOGUE 16

ALC PARLIAMENTARY EVENT 16

INLAND RAIL CONFERENCE 2018 17

2018 ALC & ATA SUPPLY CHAIN SAFETY & COMPLIANCE SUMMIT 18

POLICY PUBLICATIONS 20

IMPROVING HEAVY VEHICLE SAFETY THE AUSTRALIAN WAY 20

LAYING THE FOUNDATION 20

A COMMON DATA SET FOR OUR SUPPLY CHAIN 20

KEY POLICY SUBMISSIONS 21

LAUNCH OF THE MASTER CODE 22

COMMUNICATIONS 23

VIDEOS 23

SPEECHES 23

ALC IN THE MEDIA 24

CO

NTE

NTS

PO Box 20 DEAKIN WEST ACT 2600 P: +61 2 6273 0755 E: [email protected] www.austlogistics.com.au

@ AustLogistics Australian Logistics Council

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addressing regulatory restrictions and inadequate planning processes which hamper the performance of our supply chains and add cost pressures to businesses and households.

In today’s business environment, no industry or economic sector can expect to operate successfully without maintaining a degree of social licence from the wider community.

The first step in strengthening that social licence is to help the community understand the important contribution the freight logistics sector makes, not only to the national economy, but as an enabling influence in their own day-to-day lives.

That means that political leaders, policy makers and participants within the freight logistics industry need to have honest conversations with the public about some of the complexities and trade-offs that are necessary to meet expectations around efficient deliveries and liveable communities.

The development of a National Freight and Supply Chain Strategy – which is scheduled to be completed in 2019 – is the perfect opportunity to start having those conversations about Australia’s long-term interests.

It affords us the chance to at last implement an effective and nationally-consistent approach to corridor protection, so that governments, investors and local communities alike can have certainty when it comes to infrastructure projects.

It was an honour to be appointed as Chair of the Australian Logistics Council in August 2018. As Chair, I’ve been given the opportunity to work closely with ALC’s members and the wider freight logistics industry in advancing the cause of supply chain efficiency and safety.

All of us are aware that there are significant challenges confronting this industry, as a changing economic landscape and the influence of technology alter consumer behavior. Freight operators need to adopt new approaches to doing business.

At the same time, our rapidly growing population begins to exert pressures on the nation’s freight networks and forces us to reexamine the way we plan, finance and build the freight infrastructure capable of sustaining a 21st century economy. All of us understand that the wider public does not necessarily make the connection between the truck they see on the road, and the goods they buy on the shelves or online.

MESSAGE FROM ALC CHAIR, PHILIP DAVIES

Increasingly, however, they are becoming more sensitive to delays in the receipt of their deliveries, and to any increases in shipping costs that place upwards pressure on their own cost of living.

With the cost of living and population growth set to feature prominently in the federal election due to occur this year, the freight logistics industry now has an ideal opportunity to push its issues to the forefront of public debate.

The simple truth is that unless we adopt a more considered, coordinated and long-term approach to planning freight infrastructure and the way we use it, Australia will be unable to meet the growing freight task associated with our rapid rate of population growth.

The scale of the challenge was highlighted by research undertaken for the Report of Inquiry into National Freight and Supply Chain Priorities released in March 2018, which established that Australia’s national freight task is expected to double over the next two decades.

The Inquiry also found that even with major new freight infrastructure projects now being undertaken (including Western Sydney Airport and Inland Rail), our freight networks will struggle to meet this demand without other significant policy changes being made.

Clearly, the solution does not simply lie in the construction of major new pieces of infrastructure. Just as vital will be our ability to obtain greater value from existing freight infrastructure by

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The development of the Strategy also gives us the chance to establish greater national consistency in land use planning, and to gain recognition and respect for the needs of freight logistics operators in that process, so that this industry’s priorities are taken into account when land use decisions are made.

As Chair, I am committed to working with ALC’s members and the wider industry to ensure we maintain the momentum for an effective Strategy throughout this federal election year.

We need all political parties to commit to the delivery of a Strategy that delivers the infrastructure, investment and regulatory outcomes that will allow the dedicated professionals within the freight logistics industry to get on with the job - efficiently and safely.

I look forward to working with you in support of that objective.

Philip Davies Chair Australian Logistics Council March 2019

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An increasing interest among industry participants in the capacity of electric vehicles to help meet a growing freight task was the impetus for the formation of ALC’s Electric Vehicles Working Group in June 2018.

The enthusiasm of members of this Working Group is reflected in the significant amount of EV advocacy ALC undertook in the second half of 2018, and the incorporation of a session dedicated to EVs in the program at ALC Forum 2019. The Working Group has also attracted a number of new members to ALC, helping to solidify our position as an organisation that represents all aspects of the supply chain.

ALC’s commitment to enhanced safety throughout the industry was further underscored by the decision to have the Australian Trucking Association (ATA) join us as co-hosts for the 2018 ALC & ATA Supply Chain Safety & Compliance Summit. The ATA’s participation in the Summit further enhanced its profile at the nation’s most significant annual supply chain safety event.

Our leadership in safety was further demonstrated in November 2018, when the industry-wide Master Code for heavy vehicle safety was registered by the National Heavy Vehicle Regulator.

MESSAGE FROM CHIEF EXECUTIVE OFFICER, KIRK CONINGHAM

I am grateful for this opportunity to write some introductory words for this year’s ALC Annual Report, and to share with you something of my vision for ALC’s next phase of growth.

Ordinarily, the CEO’s contribution to an Annual Report is a reflection on the successes and challenges that have occurred over the preceding 12 months. Having only recently commenced in the role, I cannot do that from a personal perspective. Nonetheless, there have been some significant developments over the past year worth noting.

Clearly, 2018 was a year of significant organisational change for ALC, particularly with the departure of long-time Managing Director Michael Kilgariff at the end of July after nine years in the role.

As was noted at the time of his departure, Michael had overseen ALC’s transition from a government-funded advisory council into an independent organisation that is fully-funded by members. His dedication to ALC over many years rightly earned the respect of ALC members and the wider freight logistics industry.

It is also important to acknowledge the energetic contribution of Interim CEO Lachlan Benson, who stepped into the role upon Michael’s departure and headed the organisation for a little over six months. Lachlan’s steady hand allowed ALC to continue delivering for members and the industry during a time of transition. I am personally very grateful to Lachlan for the comprehensive handover he prepared, which has allowed me to hit the ground running as ALC’s new permanent CEO.

The organisational changes that occurred throughout 2018 did not impede ALC’s ability to continue advocating effectively for the industry, as our policy and event activities evolved to reflect the changing nature of the freight logistics industry.

In May 2018, the inaugural ALC Supply Chain Technology Summit was held in Melbourne. This new event was designed to showcase the increasingly important role that technology and data plays in securing greater efficiency and enhanced safety in our supply chains. The presentations by Australian and international experts as well as the debate and discussion that took place throughout the Summit were used to inform the development of A Common Data Set for Our Supply Chain – a discussion paper ALC released in October 2018.


Jointly developed by ALC and the ATA, the Master Code was the result of an intensive 18-month process of industry engagement. What has emerged is an effective and practical tool capable of helping those with Chain of Responsibility obligations to meet their responsibilities.

This is an incredibly important industry. It deserves a powerful, resonant and influential voice at all levels of government. As ALC’s new CEO, I am committed to working with you to ensure that’s what this organisation delivers.

Over the year ahead, ALC will seek to build on its industry leadership by broadening the scope of its policy and advocacy agenda, working more closely with all governments to deliver national regulatory consistency, developing resources for industry participants that can help them in their day-to-day operations, and enhancing the industry’s community profile by further highlighting the contribution it makes – not just to our economy, but to every Australian community.

Thank you for your continued support of ALC. I look forward to working closely with you into the future.

Kirk Coningham OAM CEO Australian Logistics Council March 2019

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ALC MEMBERS FEBRUARY 2019

Last updated February 2019

Associates

Corporate members

National sponsors Strategic partnerships

Honorary fellowsAndrew Ethell, March 2017Don Telford, March 2016Ingilby Dickson, March 2015Ian Murray AM, March 2012

Paul Little AO, February 2011Peter Gunn AM, February 2011Ivan Backman AM, May 2010David Williams OAM, May 2010

ALC MEMBERS

Research & universities


NAME

Simon Ormsby Deputy Chair & Treasurer

Executive General Manager Strategy & Corporate Development

COMPANY

Australian Rail Track Corporation

NAME

Dean Dalla Valle Chief Executive Officer

COMPANY

Pacific National

NAME

Roy Cummins Chief Executive Officer

COMPANY

Port of Brisbane

NAME

Geoff Farnsworth Partner

COMPANY

Holding Redlich

NAME

Ingilby Dickson Independent Director

2018 ALC BOARD

NAME

Brendan Bourke Chief Executive Officer

COMPANY

Port of Melbourne

NAME

Philip Davies Chair

COMPANY

Australian Logistics Council

NAME

Marika Calfas Deputy Chair

Chief Executive Officer

COMPANY

NSW Ports

NAME

Greg Pauline Director, Infrastructure and Property

COMPANY Qube Holdings (alternate director)

NAME

John West Managing Director

COMPANY

John West Logistics

NAME

Ben Newton Head of Transport Development

COMPANY

Woolworths

NAME

Mark Mazurek Chief Executive Officer

COMPANY

Linfox Logistics

NAME

Zed Ivankovic Group General Manager, Communications

COMPANY

Toll Group

NAME

Anthony Jones Group Chief Executive Officer

COMPANY

LINX Cargo Care Group

NAME

Maurice James Managing Director COMPANY Qube Holdings

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BOARD POSITION CESSATIONS

Royce Christie (June 2018)

Michael Kilgariff (July 2018)

Mark Wolny (June 2018)


ABOUT US The Australian Logistics Council (ALC) is the peak national body representing the major and national companies participating in the freight logistics industry. ALC’s consistent focus is on enhancing the efficiency and safety of our supply chains.

ALC’s members are located right across Australia. Our members are drawn from all parts of the supply chain and represent all modes of freight transport.

The extensive industry experience of our members gives ALC a unique capacity to proactively advocate on a wide range of policy matters, and means we are recognised as an authoritative industry voice by governments and the media alike.

The interests of ALC’s members are interests shared by all Australians - because we all have an interest as consumers, customers, businesses and employees in creating more efficient and safe supply chains to reduce unnecessary costs, strengthen our economy and improve the liveability of our communities.

ALC works with government at all levels to ensure they consider freight logistics in their approach to infrastructure investment planning and other policy decisions that will contribute to more efficient national supply chains which maximise benefits to the national economy.

A practical, nationally consistent approach to regulation that avoids wasteful duplication and the imposition of needless costs on freight logistics operators is a key aim of ALC advocacy.

All of ALC’s advocacy activities are underpinned by a desire to reduce the human and economic costs of unsafe industry practices by equipping industry participants with the information and tools they need to meet their safety obligations.

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MEMBERSHIP & FINANCE COMMITTEE

WORKING GROUPS

Technology committeeChair: David McNeil, e-Commerce Manager, OneSteel»» Work with industry and

government to ensure national consistency in the development and implementation of regulatory frameworks for new technologies, such as in-vehicle telematics

»» Work to promote greater recognition and more widespread adoption of technologies that will underpin improved productivity, efficiency and safety outcomes across the supply chain

»» Encourage increased focus on energy efficiency in transport and logistics delivery

»» Support industry efforts to enhance productivity through greater utilisation of technologies, such as automation.

Safety CommitteeChair: Karen Bonenfant, Global Transport & Logistics Safety Manager, Bluescope Steel»» Ongoing development

and promotion of industry driven solutions to Chain of Responsibility (CoR) obligations

»» Communication on COR obligations to company Chairs, Boards, Chief Executives and senior supply chain executives

»» Promotion, development and administration of specific industry supply chain logistics safety codes to drive national consistency and manage COR obligations.

ALC SECRETARIAT

ALC COUNCILThe ALC Council receives high

level access to significant political leaders and brings together

Managing Directors and Chief Executive Officers of the ALC

Corporate membership

ALC BOARD

Infrastructure & Regulation committee»» Collaboration with industry,

community and government to develop and implement nationally consistent and best practice logistics regulatory frameworks

»» Advocacy to COAG and Transport and Infrastructure Council

»» Work with industry to provide holistic comment on national, state and local government regulation

»» Engagement and provision of comment on National Transport Commission regulatory reform

»» Advocacy on nationally significant logistics infrastructure that supports improved productivity

»» Provide comment on national and state freight logistics plans including the National Land Freight and National Ports strategies

»» Collaboration with the private sector to harness greater investment in infrastructure

»» Ensure greater transparency and rigour behind nationally significant infrastructure

»» Ensure resource related infrastructure including roads, rail, shipping and ports are designed and implemented utilising best practice methodologies.

ORGANISATIONAL CHART


OUR VALUES Accountable: Committed to delivering sound evidence-based supply chain logistics advocacy on behalf of our members.

Collaborative: Working within appropriate legal and governance frameworks to support the effective delivery of supply chain logistics advocacy.

Innovative: Continuously scanning the environment to leverage opportunities and information to provide innovative best practice supply chain logistics advocacy.

Responsive: Quickly responding to emerging logistics issues to ensure Australia has safe, secure, reliable, sustainable and internally competitive supply chains.

Effective: Work with industry, the community and government to ensure Australian freight supply chain outcomes are cohesive and collaborative.

Efficient: Effective utilisation of our resources to ensure that our staff are supported to deliver proactive and high quality advocacy and policy advice.

STAFF

Michael Kilgariff Managing Director (until July 2018)

Lachlan Benson Interim Chief Executive Officer (July 2018 – February 2019)

Kirk Coningham OAM Chief Executive Officer (from January 2019)

Christina Birnie Events and Marketing Manager (Maternity leave cover from November 2018)

Ben Damiano Policy Officer and Company Secretary

Kylie Fiddy Accountant (until April 2018)

Kerry Corke Policy Advisor

Peter Elliot Program Manager Safety (until February 2019)

Kirstie Clarkson Events and Marketing Manager (Maternity leave from November 2018)

Simon Morgan Director Government & Communications

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Government Stakeholders»» Council of Australian Governments»» Transport and Infrastructure Council»» Transport and Infrastructure Senior

Officials’ Committee»» Department of Infrastructure, Regional

Development and Cities»» Department of Prime Minister and

Cabinet»» Related State and Territory Government

Departments»» National Transport Commission»» Infrastructure Australia and State

Infrastructure Organisations»» National Regulators»» Australian Competition and Consumer

Commission»» Productivity Commission»» Safe Work Australia»» Local Governments

Industry Stakeholders »» National logistics and supply chain:

»– Customers»– Providers»– Infrastructure owners»– Service and product suppliers

»» Allied industry associations (national and state)

»» International transport and logistics organisations

WHO ARE OUR CURRENT STAKEHOLDERS?

ALC STRATEGIC FRAMEWORK

INTENT

To provide a link between industry, government and the community to promote effective freight logistics supply chain policy with regards to people, regulation, infrastructure, safety and technology

KEY ISSUES

ALC focuses its advocacy efforts on key areas with the aim of improving supply chain performance, including:1. Safety

2. Technology

3. Infrastructure

4. Regulation.

AIM

To represent the major Australian logistics supply chain customers, providers, infrastructure owners and suppliers.

VISION

To be the lead advocacy organisation in Australia for supply chain efficiency and safety.

GOALS

1. Nationally recognised (the leader)

2. Leading advocate (the promoter)

3. Economic contribution (the advocator)

4. Expert regarding working together (the collaborator)


ALC EVENTS IN 2018

ALC FORUM 2018

This included the first major industry address by the newly-appointed Deputy Prime Minister and Minister for Infrastructure and Transport, Hon. Michael McCormack MP, as well as contributions from the Shadow Minister for Infrastructure, Transport, Cities and Regional Development, Hon. Anthony Albanese MP, and the NSW Minister for Roads, Maritime and Freight, Hon. Melinda Pavey MP.

Attendees were also provided with first-hand insights from three members of the Expert Panel advising the Inquiry into National Freight and Supply Chain Priorities about the major issues they identified when completing their report.

More than 280 leaders, policy-makers and professionals representing all parts of the supply chain gathered in Sydney from 6-8 March for ALC Forum 2018, which was notable for keynote addresses given by senior political decision makers throughout the two-day event.

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ALC Forum 2018 attendees identified a number of opportunities to ensure the ultimate effectiveness of the National Freight and Supply Chain Strategy. These include:

Developing a clear set of industry benchmarks and/or key performance indicators (KPIs) that will allow industry, governments and regulators to better identify which aspects of the supply chain are performing well, determine those which are experiencing difficulties, and permit the development of effective policy responses;

Continuing to encourage governments at all levels to ensure planning systems properly account for freight movement, particularly in CBD and inner-urban areas;

Pursuing the adoption of a holistic and consistent National Corridor Protection Strategy that will protect critical freight infrastructure and employment lands from the impact of urban encroachment, particularly around ports and airports;

Encouraging the collection of more and better data about freight movement, to help guide investment decisions about freight infrastructure and more effectively measure the performance of our freight networks;

Removing legislative and regulatory barriers that needlessly prevent opportunities for data-sharing that can enhance the efficiency, safety and visibility of our supply chains, whilst still protecting commercial and user privacy;

Providing certainty for investors by encouraging governments across all jurisdictions to develop a transparent, independent and long-term approach to prioritising infrastructure investment that lasts well beyond election cycles;

Building community awareness of the importance of efficient supply chains for businesses, households and consumer prices, and communicating honestly about the challenges associated with a growing population. This will help protect the social licence freight networks require to operate effectively;

Promoting far greater use of technology to improve safety and efficiency across all modes of freight transport;

Investing in rail infrastructure that will help Australia meet a rapidly-growing freight task, including Inland Rail, short-haul rail from ports to intermodal facilities and encouraging the separation of freight and passenger rail;

Ensuring regulatory frameworks are being prepared now to account for technological evolution, including the introduction of Connected and Autonomous Vehicles (CAVs) and more widespread use of Artificial Intelligence (AI) within the industry;

Working to enhance the diversity of the industry by improving workplace culture, promoting the benefits of a career in freight logistics, identifying the sector’s future leaders, and ensuring skills training programs are preparing and equipping the current and future industry workforce with the skills needed in a 21st century economy; and

Recognising that the National Freight and Supply Chain Strategy can only succeed with active cooperation from industry and all tiers of government, which will require continuing industry consultation and involvement in its ongoing development.


The Technology Summit was a new addition to the ALC events calendar in 2018

ALC SUPPLY CHAIN TECHNOLOGY SUMMIT

The ALC Supply Chain Technology Summit was a new addition to the ALC events calendar in 2018, reflecting the increasingly central role that data and the application of new technologies are having on the operation of Australia’s supply chains.

Held in Melbourne on 10 May 2018, the Summit featured presentations by leading Australian and international technology researchers, regulatory and policy-making bodies, designers and providers of technology systems, as well as industry participants representing all parts of the supply chain.

More than 120 Summit attendees explored a range of factors that affect the deployment of technology throughout our supply chains, including regulatory barriers and policy inconsistencies, cost issues, skills issues and shortages in the workforce and a lack of understanding about some of the opportunities that technology presents.

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The key actions which the industry will need to pursue in the years immediately ahead were identified as follows:

Recognising the transformational capacity of technology to build trust in supply chains, in Australia and globally. Blockchain-based technologies can help move value back on the chain – allowing benefits to be extracted by participants, rather than intermediaries;

Commencing work to develop a single data standard for use in Australia, which can be incorporated into any global standard that may be developed. This will promote certainty and interoperability across the industry;

Elevating the importance of quality control for data in business operations. Technology is only effective if it can utilise quality data – and industry needs to be doing more at the operational level to ensure that accurate information is being fed into data chains;

Addressing issues around interoperability of technology by not seeking to impose arbitrary barriers or regulatory requirements. The focus should be on designing new streamlined systems, rather than merely mimicking old paper-based systems in electronic form;

Demonstrating the benefits of technology to smaller operators more effectively, highlighting that an upfront capital cost still results in net gains overall, thanks to business efficiency and safety improvements;

Understanding that the industry is not faced with an ‘either/or’ choice in terms of a human or automated workforce, but must focus on the ‘handover space’ between automated and human tasks;

Equipping the industry’s workforce with the skills needed for the supply chains of the future. This means ensuring vocational education is respected as highly as tertiary qualifications, and that vocational education programs incorporate training in areas such as digital analytics and programming;

Promoting the safety, efficiency and productivity benefits that can flow from connected and autonomous, as well as electric vehicles across all modes of freight transport. This includes deploying the Advanced Train Management System (ATMS) developed by the Australian Rail Track Corporation (ARTC);

Working cooperatively with governments to ensure Australia can meet its target of having an end-to-end regulatory regime in place by late 2020 permitting the operation of autonomous vehicles on Australian roads; and

Pursuing enhanced supply chain visibility in Australia though the adoption of global data standards and emphasising the value of data sharing across supply chains in order to meet the expectations of modern consumers and businesses around freight delivery.


ALC DIALOGUE

ALC PARLIAMENTARY EVENT

The eighth annual Dialogue between ALC and the Department of Infrastructure, Regional Development and Cities was held in Canberra on 27 June 2018.

Participation in this event continues to increase each year. It was pleasing to note a particularly strong turnout of ALC members to directly discuss key industry priorities with departmental officials.

For the first time, leaders of other allied industry organistions were also invited to take part in Dialogue, helping to broaden its focus and ensure the supply chain needs of particular industries were taken into account during the discussions.

Among the key issues discussed by participants at Dialogue in 2018 were:

» Progressing road pricing reform;

» Outcomes of the Inquiry into National Freight and Supply Chain Priorities;

» Ensuring the particular needs of ‘freight lands’ are addressed by planning systems;

» Achieving greater national consistency in regulation;

» How to encourage industry cooperation around data sharing; and

» How data can more effectively be used to measure performance.

Each year, the ALC Parliamentary Event brings the industry’s senior leaders together with political decision-makers, and is an important opportunity to highlight the contribution the freight logistics industry makes to the nation as a whole.

There were parliamentarians from across the political spectrum in attendance, including the then-Minister for Urban Infrastructure, Hon. Paul Fletcher MP, and the Shadow Minister for Infrastructure, Transport, Cities and Regional Development, Hon. Anthony Albanese MP.

ALC used the 2018 Parliamentary Event to release Laying the Foundation - a Discussion Paper which set out nine priority actions for the Commonwealth Government to pursue immediately, to help facilitate a more effective implementation of the National Freight and Supply Chain Strategy once it is finalised.

The 2018 ALC Parliamentary Event was also held on 27 June 2018, following the conclusion of Dialogue earlier in the day.

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INLAND RAIL CONFERENCE 2018

ALC partnered with the Australasian Railway Association (ARA) to deliver the first industry -led conference dedicated to the nation-building Inland Rail project. The event was held in Parkes NSW on 18-19 July 2018.

More than 400 people attended the two-day conference, demonstrating that industry participants are eager to work cooperatively with governments to deliver this transformation for Australia’s freight networks in the years ahead.

Inland Rail will also form a central part of the National Freight and Supply Chain Strategy that is currently being developed by the Commonwealth Government. Accordingly, it will be essential to focus on the development of infrastructure that supports Inland Rail’s seamless integration into the rest of our freight network, including linkages to ports and the development of intermodal terminals.

The conference helped to clarify project priorities for businesses, governments and local communities, and clearly set out what needs to be done next to ensure the significant public investment being made to construct the Inland Rail delivers real benefits for supply chain efficiency, safety, export competitiveness, employment and regional development.

Among the key actions to emerge from the Inland Rail Conference were:

Dealing with the ‘last mile’ issues by getting the planning and construction of links to the Port of Brisbane, as well as ensuring efficient rail linkages to key ports in NSW;

Using the multi-jurisdictional nature of the project to drive harmonisation of planning, environmental, freight data and industry training standards. National consistency in these areas will have benefits lasting well beyond the Inland Rail’s construction period;

Ensuring we equip the current and emerging workforce with skills needed to construct, maintain and operate the Inland Rail. This is imperative given Australia’s ‘infrastructure boom’ and ageing workforce;

Proactively engaging with local communities through local councils, schools and other relevant bodies to ensure they appreciate and can take advantage of the opportunities Inland Rail presents;

Partnering with the private sector to drive innovation in how the project is delivered and push further direct and indirect investment along the route

Demonstrating the absolute necessity of the Inland Rail project by highlighting negative consequences for Australia’s supply chain efficiency, traffic congestion, passenger rail services and road safety without vastly improved freight rail infrastructure; and

Putting data gathering frameworks in place that will enhance freight visibility and demonstrate the viability of Inland Rail as the right mode for particular commodities.


2018 ALC & ATA SUPPLY CHAIN SAFETY & COMPLIANCE SUMMIT

Jointly presented for the first time by ALC and the Australian Trucking Association (ATA), over 300 people attended the 2018 ALC & ATA Supply Chain Safety & Compliance Summit at Melbourne Park on 5-6 September 2018.

The Summit was the last major industry event held prior to the commencement of changes to the Chain of Responsibility (CoR) provisions in the Heavy Vehicle National Law (HVNL) on 1 October 2018.

Attendees had the opportunity to hear directly about initiatives to improve heavy vehicle safety from leading government figures, including the Deputy Prime Minister and Minster for Transport, Infrastructure and Regional Development, Hon. Michael McCormack MP, and Victoria’s then-Minister for Roads and Road Safety, Hon. Luke Donnellan MP.

Through a series of panel discussions and interactive workshops, Summit participants identified a number of key developments and areas for industry to address in order to deliver better supply chain safety.

The major issues and areas for further action identified by Summit participants were as follows:

End-to-end supply chain collaboration on safety is vital. More needs to be done to demonstrate that an effective approach to managing safety risks not only delivers better safety outcomes, but also greater efficiencies for operators and for customers.

The Master Code is relevant to all parts of the industry, including smaller operators. ALC and the ATA should continue working to demonstrate how the Master Code embodies a practical approach to the management of safety risks, which will help demystify many of these issues for smaller operators.

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Increasing duplication throughout the auditing system for heavy vehicles is having a detrimental impact and must be addressed. Industry, customers and the wider community will be better served by a system that is less focussed on ‘box ticking’, and instead does more to embrace the practical, real-world experience of drivers in managing safety risks.

Jurisdictional inconsistencies in the enforcement of CoR and the HVNL remain a significant frustration. Leading industry bodies such as ALC and the ATA should lead efforts to ensure compliance authorities understand how consignors and consignees are managing risks – and ensure those efforts are being recognised when it comes to enforcement.

Executive level recognition of the importance of CoR will drive better safety. When a company’s leadership shows they ‘get it’, it drives cultural change throughout an organisation. ALC and the ATA can play a role in helping executives understand that demonstrating compliance with their safety obligations is not merely a legal requirement, but offers tangible business benefits.

Statistics on heavy vehicle safety need to be presented more effectively. The tendency to assume that the heavy vehicle is at fault in every incident has a bearing on the industry’s social licence. Industry should work with authorities to ensure the statistics present a more accurate picture, and develop strategies to ensure passenger vehicles share the road with heavy vehicles more safely.

There needs to be far more honest conversation about mental health in the industry. Driving is a solitary activity that necessitates a lot of time away from homes and families. Industry organisations need to work collaboratively on initiatives that remove the stigma around talking about mental health challenges. Developing programs that equip the industry’s workforce with tools needed to deal with mental health issues effectively must be a top priority.

Improving technology should be embraced by all in the effort to save lives on our roads. This includes promoting much greater uptake of telematics, in-vehicle cameras and the development of consistent data standards that will promote enhanced safety right though the supply chain, assist with business management and promote better infrastructure investment (including rest stops).


POLICY PUBLICATIONS IMPROVING HEAVY VEHICLE SAFETY THE AUSTRALIAN WAYALC released a new Position Paper, Improving Heavy Vehicle Safety The Australian Way, in April 2018, to coincide with its appearance before the NSW Parliamentary Joint Standing Committee on Road Safety (Staysafe Committee).

The Committee was conducting an inquiry into heavy vehicle safety and use of technology to improve road safety, and the publication set out ALC’s vision for how safety could be further enhanced through policy reform.

The Position Paper set out ALC’s unequivocal view that heavy vehicle operators should be required to comply with an agreed National Operating Standard in order to operate a heavy vehicle in Australia.

This National Operating Standard would require a heavy vehicle operator to have both the financial capacity to operate a business as well as adopting a uniform Safety Management System. This is consistent with the approach taken in other comparable jurisdictions, including the United Kingdom, the United States, Canada and New Zealand.

The Position Paper also reaffirmed ALC’s continuing support for amending the Heavy Vehicle National Law (HVNL) to mandate the use of telematics in heavy vehicles.

LAYING THE FOUNDATIONReleased on 27 June 2018 at the ALC Parliamentary Event, Laying the Foundation was the first in a continuing series of Discussion Papers ALC is producing in connection with the continued development of the National Freight and Supply Chain Strategy.

The publication set out nine recommended policy actions that were consistent with findings contained in the Report of the Inquiry Into National Freight and Supply Chain Priorities, which emphasised the need for governments to “take a leadership role and take immediate action.”

The nine actions identified were all areas in which the Commonwealth could take immediate action, in order to facilitate a more effective implementation of the Strategy once it is finalised. The recommendations were designed to ensure relevant agencies were adequately resourced to support implementation of the Strategy, and to reduce regulatory and compliance burdens on freight logistics operators.

One of the key recommendations was for the Commonwealth Government to undertake an independent review of the rules around over size and over mass (OSOM) vehicle movements. Pleasingly, this recommendation was acted upon within days of the Laying the Foundation being released.

A COMMON DATA SET FOR OUR SUPPLY CHAINALC released A Common Data Set For Our Supply Chain on 23 October 2018, to focus attention on how the power of technology and data can best be harnessed to enhance supply chain efficiency for businesses and consumers.

The second of ALC’s continuing series of Discussion Papers supporting the development of the National Freight and Supply Chain Strategy, this publication was developed with industry input through members of the ALC Technology Committee.

The Discussion Paper sets out a practical pathway for improving the quality and availability of data available to policy makers and industry participants regarding the operation and performance of our supply chains.

A Common Data Set For Our Supply Chain sets out a series of actions that are geared towards improving supply chain visibility, developing a common data standard for Australia’s logistics industry, enhancing confidence regarding the privacy and ownership of data, and aligning international data standards to boost efficiency in global trade.

These issues were all identified as priorities for industry during ALC’s inaugural Supply Chain Technology Summit in May 2018. To ensure that we can deliver the outcomes the freight logistics industry is calling for, it will be important that these matters are explicitly addressed by the Strategy once it is finalised.

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ALC continued its active program of policy advocacy and development during 2018, making formal submissions to a number of significant national and state-based policy consultations and parliamentary inquiries, as well as actively participating in consultative bodies designed to directly shape policy formulation.

In all its policy activities, ALC adheres to its core objective of securing greater supply chain efficiency and safety.

By developing detailed policy submissions that assist governments at the federal, state and local level to shape their policy agenda, ALC is helping the industry to obtain greater national consistency in policy settings.

ALC attended and actively participated in all meetings of the COAG Transport and Infrastructure Council (TIC) in 2018, and regularly engaged with relevant state ministers though formal meetings, boardroom lunches and by participating in key state-based consultative bodies.

ALC also gave evidence before key parliamentary inquiries held during 2018, including the NSW Parliamentary Joint Standing Committee on Road Safety (Staysafe Committee) and the Senate Select Committee on Electric Vehicles.

ALC provided formal submissions and responses to consultation processes on a wide range of matters during 2018, including:

» Draft Queensland Freight Strategy

» Establishing the Basis of Reform (Submission to TISOC)

» NSW Electric & Hybrid Vehicle Plan

» Queensland Parliament Inquiry into Transport Technology

» Select Committee on Electric Vehicles

» Safety Assurance for Automated Driving Systems

» Western Sydney Long Term Strategic Transport Corridors

» NT Territory-Wide Logistics Master Plan

» NSW Draft Freight and Ports Plan

» Heavy Vehicle National Law and Other Legislation Amendment Bill (2018)

» Inquiry into the progress under the National Road Safety Strategy 2011-2020

» NSW Parliament Staysafe Committee – Inquiry into Heavy Vehicle Safety and use of Technology to Improve Road Safety

» Australian Dangerous Goods Code

» National Heavy Vehicle Regulator – Electronic Work Diary Policy Framework and Standard

KEY POLICY SUBMISSIONS


LAUNCH OF THE MASTER CODE

29 November 2018 was a particularly significant day for ALC, as the industry-wide Master Code for heavy vehicle safety was officially launched in Canberra.

The Master Code was developed by Safe Trucking and Supply Chains Limited, a company jointly owned by ALC and Australian Trucking Association (ATA).

The content of the Master Code was informed by more than 18 months of extensive engagement with industry through various public forums, as well as direct consultations that involved a wide range of industry participants and other key stakeholders.

The Master Code applies to all parties in the supply chain who consign, load, carry or accept freight through a heavy vehicle.

It is intended to be used by all persons and businesses involved in the transport activity of a heavy vehicle and is available free of charge.

The Master Code deals with managing risks associated with the four core areas within the Chain of Responsibility (CoR) under the HVNL:

» Speed compliance

» Fatigue management

» Mass, dimension and loading; and

» Vehicle standards

This is achieved by translating the requirements of the HVNL into a practical application for the whole industry. The Master Code also provides suggested controls that can be used by supply chain parties to manage their CoR risks.

The delivery of the Master Code was a clear demonstration of ALC’s commitment to promoting best practice in safety and ensuring industry participants have the tools they need to deliver safety improvements in their day-to-day operations

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VIDEOS

Opening Video – ALC Forum 2018 (March 2018)

This video was produced to open ALC Forum 2018 and highlight the major issues on the agenda.

The video incorporated interviews with members of the Expert Panel that advised the Inquiry Into National Freight and Supply Chain Priorities and helped to frame the issues that industry needed to consider as the next phase of developing the National Freight and Supply Chain Strategy got underway.

Opening Video - 2018 ALC & ATA Supply Chain Safety & Compliance Summit (September 2018)

Produced to open the 2018 ALC & ATA Supply Chain Safety & Compliance Summit, this video focused on the changes to the Chain of Responsibility (CoR) provisions under the Heavy Vehicle National Law (HVNL) and what businesses needed to do to ensure compliance.

With the Summit being jointly presented with the Australian Trucking Association (ATA) for the first time, there was also a focus on the development of the industry-wide Master Code for heavy vehicle safety, as well as the value of industry participants sharing experiences that can help others understand best practice in safety.

SPEECHESThroughout 2018, ALC representatives were invited to present at a number of significant industry gatherings and meetings of key bodies, to highlight the important role Australia’s freight logistics industry plays in economic activity, and underscore the importance of greater supply chain efficiency and safety for businesses and local communities.

These issues included planning freight-friendly cities, regulatory reforms needed to enhance competition, how rail can share the growing freight task, the importance of intermodal terminals, the role of technology in enhancing efficiency and safety, and improving the community’s understanding of the industry’s importance in their own daily lives.

Laying the Foundation (June 2018)

This video was produced as a visual accompaniment to the launch of the Laying the Foundation Discussion Paper at the ALC Parliamentary Event in June 2018.

The video spotlights key actions that the Commonwealth Government could pursue immediately, so that the National Freight and Supply Chain Strategy can be implemented more effectively once it is finalised.

These included removing outdated air, noise and vehicle movement regulations that hamper supply chain efficiency, providing incentive payments to achieve planning reforms, directing more funding from existing rail programs to freight rail projects and boosting the quality and quantity of supply chain performance data.

COMMUNICATIONS


ALC’s presentations at these events were a valuable opportunity to emphasise key industry priorities, including:

» ensuring governments act to protect key freight transport corridors;

» pursuing a nationally-consistent approach to transport regulation;

» enhancing the quality and quantity of data available regarding the operation of our supply chains;

» promoting better heavy vehicle safety through mandatory telematics;

» highlighting the costs that inefficiencies in Australia’s freight transport network impose on businesses and consumers; and

» ensuring that Australia gets the best value for money by prioritising infrastructure development according to national needs, and not political expediency.

Presentations were made at the following events:

» Transport & Infrastructure Association CEOs - 8 November 2018

» Australian British Infrastructure Catalyst – 11 October 2018

» Freight and Logistics Council of WA – 27 September 2018

» Supply Chain Logistics Digital Disruption Forum – 18 September 2018

» Western Sydney Airport Industry Roundtable – 24 August 2018

» Smart Infrastructure Summit – 8 August 2018

» MEGATRANS 2018 Ministerial Breakfast – 10 May 2018

» Milk Transport & Haulage Industry Conference – 1 March 2018

» Property Council Infrastructure Outlook – 27 February 2018

» Transport Certification Australia Board Workshop - 21 February 2018

ALC IN THE MEDIAALC maintained a consistent presence in mainstream, social and trade media outlets in 2018.

A core objective for ALC’s advocacy is to use media outlets to place our industry’s views and policies before the public, who can exert influence over policy-makers. This is in addition to promoting those views directly to policy-makers themselves.

During 2018 ALC issued an average of more than one media release a week, continued to publish regular monthly columns in key trade media outlets, published opinion pieces in key mainstream media outlets including The Australian and appeared on nationally-broadcast news programs.

This media engagement resulted in 241 mentions in trade and mainstream media outlets for ALC throughout 2018.

ALC UpdateALC Update is a free newsletter emailed to all our members and stakeholders each month highlighting ALC’s policy and advocacy activities, news from our members and general industry updates.Subscribe via www.austlogistics.com.au

PO Box 20 DEAKIN WEST ACT 2600 P: +61 2 6273 0755 E: [email protected] www.austlogistics.com.au

@ AustLogistics Australian Logistics Council

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