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Driving productive agricultural supply chains through innovative & responsive freight systems & infrastructure

ABARES Outlook Conference 2016 National Convention Centre, Canberra Dr Rebecca Michael, CEO, QTLC

QLD Freight Network

• 180,500km public roads – 150,000 locally controlled

(100,000 unsealed)

• 9,550 km rail line (inc. narrow, standard and dual gauge)

• 15 import/export ports • 3 international airports

and various domestic • 2 key intermodal freight

terminals (various smaller terminals and rail sidings)

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Freight Overview

• Skewed to road – agriculture higher than state average

• Rail – coal, minerals, cement, bulk grain, sugar

Challenges, Constraints & Cost

• Infrastructure limitations

• Safety • Seasonality • Geography

exponentially increases challenges as commercial constrains within the system

Challenges, Constraints & Cost

Table 1 Detail of component costs of Australian and Canadian grain supply chains ($/t)

Canada (CAD) Australia (AUD)

On farm storage 17.5 5.0

Cartage – farm to site 10.7 8.9

Handling & elevation 15.2 14.4

Upcountry storage NA 3.9

Transport – upcountry to port 49.8 27.8

Receival & handling charges at port 10.1 13.5

Other port and vessel charges 3.8 7.5

Levies & check offs 3.0 2.8

End point royalties NA 3.0

• Transport costs represent approx. 30% total production costs….sometimes higher

• High port costs

Innovation + Efficiency = Growth

• Flexible freight infrastructure - Yamala

• Expand operations of Qld ports

• Intermodal terminals

• Greater use of high productivity vehicles – A-Doubles to the POB

• Supply chain coordination

• Data optimisation - Port Community System

Yamala Intermodal Terminal

• Supply chain efficiency through better utilisation of infrastructure and comparative advantages of each mode.

• 22km east of Emerald with existing sidings

• Contiguous agricultural holdings and production

• 20 TAL

• Containerisation & standardised logistics platform

Yamala - Benefits

• Fewer road freight movements & improved safety

• Reduced operating costs & trips required

• Reduced road maintenance costs

• Improved backload opportunities

• Economic benefit through clustering

• Improved rail utilisation and sustainability

A-Doubles to POB

• PBS vehicle 4 metres longer than previous combinations. • 2 x 20ft grain containers. Better payload than rail. • Weight initially constrained by bridges on the corridor which have

now been upgraded. Should be able to run at HML – 85t • 2 x 40ft containers meat

Supply Chain Coordination

• Hunter Valley Coal Chain Coordinator: – A cooperative planning and operating model

– Performance:

• Unprecedented low loss rates

• Improved On-time performance (20-30%)

• Successive Record tonnes

• Estimated 4Mtpa value to the coal chain ($280 Million)

• Satisfied customers – Producers & Service Providers

• Dalrymple Bay Coal Terminal (DBCT) Coal Chain Coordinator

11

Producers

• ~40 coal mines

• 11 producers

• ~30 load points

• >80 different

brands of coal

Port/Vessels

• Over 1,700 vessels per year

• Average vessel size is ~95,000

tonnes

• Average 1 to 4 cargoes per vessel

• Tidal constrained river port

End Buyers

• 10% domestic consumption

• 90% export – mostly thermal (2012) • 54% to Japan • 19% to China • 13% to Korean

Export Coal Terminals

• 3 coal loading terminals

• 8 dump stations

• 9 ship berths and 7 loaders

• 2.2 Mt of rapid cargo build

stockpiles at PWCS

• Longer horizon dedicated

stockpiles at NCIG

Antiene Domestic Terminal

• Muswellbrook Power

Stations

Track

• 4 train haulage operators

• Further smaller train

haulage operators

• 55+ trains/~20,000 trips

per year

• 2 track owner/operators

• Haulage distances up to

364km

Mine

Mine

Load

Points

Train Haulage

Track Infrastructure

Terminal

Dump Station

/Stackers

Mine

Stockpiles

Terminal

Stockpiles

Ship

Queue

Reclaimer/

Ship Loaders Mine

Mine

Mine

Purpose: To Plan and co-ordinate the co-operative daily operation and long term capacity alignment of the Hunter Valley

Coal Chain

Objective: Maximise throughput at minimum total logistics cost in accordance with the agreed collective needs and

contractual obligations of coal producers and service providers.

Hunter Valley Coal Chain Coordinator

Port Community System

• Open computer system connected to multiple data owners to enable rapid sharing of data and minimise data duplication

In summary…

• Infrastructure upgrades alone are not the panacea to improved productivity in agricultural supply chains.

• Need a supply chain, not industry, approach to optimise the freight system through innovative approaches to coordination and use of data.

Thank you

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