rebecca michael - qtlc - unlocking the galilee basin – creating the transport solutions for...
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Dr Rebecca Michael, CEO, Queensland Transport and Logistics Council (QTLC) delivered this presentation at the Galilee Basin Coal & Energy Conference. This conference focuses on developing a new, world scale energy province in Central Queensland. It looks at the significant proposed investment in the Galilee area including coal mining, underground coal gasification, coal seam gas, geothermal, shale and much more, bringing together the wide variety of explorers, project developers, service providers and government representatives under the one roof. The event is run in conjunction with the Australian Journal of Mining (AJM). For more information about the event, please visit the conference website: http://www.informa.com.au/galileebasin2013TRANSCRIPT
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Unlocking the Galilee Basin -‐ Crea%ng transport solu%ons for mul%-‐user opera%ons Galilee Basin Coal & Energy Conference November 2013 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 interna%onal airports and various domes%c • 2 key intermodal freight terminals (various smaller terminals and rail sidings)
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The Freight System
• Geography exponen%ally increases challenges as well as value of efficiency and produc%vity gains within the system
• The freight system = freight network + transport services + regula%on
• Whole of supply chain approach versus modal….integrate not insulate!
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Supply Chain Security
• Freight is a profit seeking ac%vity • Goal is most produc%ve and efficient flow of goods to market
• Australia logis%cs up to 50% market price. Canada ½ of that!
• Infrastructure upgrades wont deliver benefits unless the compara%ve advantages of each mode are op%mised through broader freight system across supply chains
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Commission of Audit Report
• Recommenda%on to reduce debt by $25-‐30 billion • Cannot reduce debt by adjustments to state opera%ng
statement • Produc%vity declining (Source: Qld Treasury & Trade , 2013) • Right infrastructure, used the right way, enables more
efficient produc%on which benefits produc%vity
2007-‐08 to 2011-‐12 QLD AUST
Average Annual Growth (%)
Output 1.4 2.7
MulEfactor ProducEvity -‐2.0 0.00
Labour produc%vity -‐0.1 1.4
Less capital deepening 1.9 1.4
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Connec%vity & Innova%on
• Paradigm shid that: – Recognises the connec%vity of the freight system – Understands key drivers and flows – Underpinned by innova%on and network op%misa%on
– Recognises that infrastructure upgrades alone are not a silver bullet for improved produc%vity and economic growth
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QLD Challenges
• Major constraints to supply chain security: – First / last mile (not just LG, access to “significant place for freight”)
– Network capacity & reliability – Conges%on – Regula%on – Role uncertainty
• Fiscal constraints…..unlocking latent efficiency
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Galilee Basin
• Qld government innova%ve approach to understand transport infrastructure demands
• Addressing port, rail, road connec%vity • Cri%cal due to characteris%cs of Galilee: – Inadequate infrastructure – Compe%ng supply chains – Geographically isolated
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Input Demand
• Significant amount of input freight: – Petroleum – Building and construc%on – Plant and machinery
• Pressure on network and regulatory processes • Poten%al to disrupt other supply chains and communi%es
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Road
• Dominant mode for mining inputs • Significant increase in: – HPV’s – OSOM movements – Hazardous goods
• Cri%cal constraints include ageing bridges and culverts, road envelope and pavement depth
• Permit processing, route assessments, traffic management
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OSOM
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Eatons Range
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Suppor%ng Road Mvmts
• Alterna%ve route assessment & investment models – WA example
• Infrastructure upgrades • Class/period permits • Coastal shipping study
Reducing cost to industry
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Rail
Alpha SecEon of Track – 2011 Floods
• Bulk fuel • Inland port • ISO tanks • Containerised system • Back loading opportuni%es
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Intermodal/Port Facili%es
• Supply chains most vulnerable to efficiency leakage at modal interfaces
• Cri%cal ports = Brisbane, Mackay & Gladstone • Large scale development required at Mackay & Gladstone to meet input demand
• Intermodal terminal will alleviate road, fa%gue issues and provide cross supply chain benefits
Regulatory/Policy Serngs
• Gov seeking to reduce red tape
• Galilee Basin State Development Area (2014)
• SQSC Report advocates a number of policy serng that will benefit the Galilee transport development
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The Challenge Ahead
• Commence opera%ons by 2016
• Substan%al planning and assessment underway
• Infrastructure upgrades and equipment may take up to 2 years
• Must work together to meet the challenge
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Thank you
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