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