transport and logistics irc skills forecast...

TRANSPORT AND LOGISTICS IRC

SKILLS FORECAST 2017

© Australian Industry Standards Ltd. Transport and Logistics IRC Skills Forecast 2017 2

TRANSPORT AND LOGISTICS IRC SKILLS FORECAST

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HOW TO USE THIS DOCUMENTThe IRC Skills Forecasts focus on the prioritisation of the skill needs of the industry sectors each IRC has responsibility for. They are developed and reviewed annually and submitted on behalf of the IRC to the Australian Industry and Skills Committee (AISC) for approval.

The document is deliberately brief, it does not seek to capture every issue within every sector. It is a snapshot of a continually evolving story that is intended to alert and inform a wide audience and enhance their capacity to act.

IRCs are required to consult broadly with stakeholders to ensure a whole-of-industry view about the opportunities and challenges for the workforce and the Training Package review work necessary to meet industry needs. The information is then used to develop the four-year IRC Proposed Schedule of Work.


TABLE OF CONTENTS

EMPLOYMENT SKILLS OUTLOOK

SKILLS RELATED INSIGHTS

PROPOSED SCHEDULE OF WORK 2017/18 - 2020/21

IRC SIGNOFF

TRANSPORT AND LOGISTICS OVERVIEW

P.18

P.28

P.39

P.4

P.32P.6


TRANSPORT AND LOGISTICS IRC SKILLS FORECAST

This Four-Year IRC Skills Forecast has been submitted by the Transport and Logistics Industry Reference Committee (IRC) to Australian Industry and Skills Committee (AISC) for approval.

The IRC Skills Forecast identifies the priority skill needs of the Transport and Logistics industry following a research and stakeholder consultation process conducted by Australian Industry Standards on behalf of the IRC.

Once approved by the AISC, the IRC Skills Forecast informs the development of a four-year rolling National Schedule for development and review work of the TLI Transport and Logistics Training Package.

More information on the National Schedule can be found at: www.aisc.net.au/content/national-schedule

This IRC Skills Forecast was agreed to by the Transport and Logistics IRC Chair on Wednesday, 19 April 2017:

Mark McKenzie

Transport and Logistics IRC Chair

http://www.aisc.net.au/content/national-schedule

The Transport and Logistics Industry Reference Committee has been assigned responsibility for the TLI Transport and Logistics Training Package.

The TLI Transport and Logistics Training Package provides the only nationally recognised Vocational Education and Training (VET) qualifications for occupations involved in: Warehousing and Logistics Operations, Driving Operations, Stevedoring, Yard Operations Freight Handler, Furniture Removals, International Freight Forwarding, Mobile Crane Operations, Waste Driving Operations, Driving Instruction for car, heavy vehicle and motorcycles, Materiel and Deployment Logistics, Traffic Operations, Bus and Coach Operations and Customs Broking.

More information about the Transport and Logistics IRC and its work can be found here: http://www.australianindustrystandards.org.au/committee/transport-and-logistics-industry-reference-committee/

Name OrganisationAnne Maric TNTBill McKinley Australian Trucking AssociationBill Murphy Customs Brokers and Forwarders Council of

Australia IncCam Dumesny Western Australia Road Transport Association IncCathi Payne Payne HaulageDamien Davies BORALDavid Hine Woolworths LimitedDavid Rogers Supply Chain and Logistics Association of AustraliaGreg Lipscombe Linfox LogisticsJoe Lopino Australian Furniture Removers AssociationKim Hassall Chartered Institute of Logistics and TransportLindsay Eisemann Origin EnergyLynda Douglas Department of Defence Mark Haley Border ExpressMark McKenzie ACAPMAMichael Kilgariff Australian Logistics CouncilNeville Johnstone DP World AustraliaPeter Anderson Victorian Transport AssociationUmme Hoque Transport Workers Union of AustraliaWarren Smith Maritime Union of Australia

TRANSPORT AND LOGISTICS INDUSTRY REFERENCE COMMITTEE


http://www.australianindustrystandards.org.au/committee/transport-and-logistics-industry-reference-committee/



TRANSPORT AND LOGISTICS OVERVIEW


The Transport and Logistics industry in Australia has an estimated annual revenue of $95.4 billion, adding $39.26 billion to the Australian economy in 2015-16. The industry employs nearly half a million people across its major sub-sectors: road transport, logistics, warehousing and stevedoring.

TRANSPORT AND LOGISTICS INDUSTRY OVERVIEW

KEY FACTS:• 48,747 registered businesses in the road freight transport

ranging from single truck operators to large multi-national corporations2

• 19 per cent growth by 2026 forecast for domestic passenger task2

• $53 billion per year by 2031 is the estimated cost of congested transport infrastructure3

• $21.65 billion spent by Australians on eCommerce in 2016 requiring distribution to customers4

• $1.2 billion of cargo moved in Australian ports everyday4

BOld column one col

Ocupations Columone col\

Foot note for industry metrics table form key findings paper

TRANSPORT AND LOGISTICS INDUSTRY METRICS


Revenue ($b) 95.37Profit ($b) 10.3Average Wage ($) 66,264.58No. of Businesses 84635Employment Growth (% to 2022) 4.5

Scope: Grain Storage, General Warehousing and Cold Storage, Removalists, Taxi and Limousine Transport, Urban Bus and Tramway Transport, Long Distance Bus Transport, Rail, Air and Sea Freight Forwarding, Road Freight Transport, Customs Agency Services, Stevedoring Services, Port Operators, Road Freight Forwarding, Courier Pick-up and Delivery Services, Postal Services, Scenic and Sightseeing Transport1


TRANSPORT AND LOGISTICS TRAINING PACKAGE ARCHITECTURE


The TLI Transport and Logistics Training Package components relating to Road Transport, Logistics, Warehousing and Ports provide the only nationally recognised Vocational Education and Training (VET) qualifications for occupations involved in: Warehousing and Logistics Operations, Driving Operations, Stevedoring, Yard Operations Freight Handler, Furniture Removals, International Freight Forwarding, Mobile Crane Operations, Waste Driving Operations, Driving Instruction for car, heavy vehicle and motorcycles, Materiel and Deployment Logistics, Traffic Operations, Bus and Coach Operations and Customs Broking.

The TLI Transport and Logistics Training Package components relating to Road Transport, Logistics, Warehousing and Ports comprise 36 qualifications, 461 units of competency and 38 skill sets covering these sectors.

The TLI Transport and Logistics Training Package contains the following qualifications that are overseen by the Transport and Logistics IRC:

TLI TRANSPORT AND LOGISTICS TRAINING PACKAGE

• Certificate I in Warehousing Operations • Certificate I in Logistics • Certificate I in Transport and Logistics (Pathways) • Certificate II in Logistics Certificate II in Stevedoring • Certificate II in Driving Operations • Certificate II in Furniture Removal

• Certificate II in Road Transport Yard Operations (Freight Handler)

• Certificate II in Warehousing Operations • Certificate III in International Freight Forwarding

(Operator) • Certificate III in Mobile Crane Operations • Certificate III in Stevedoring

10© Australian Industry Standards Ltd. Transport and Logistics IRC Skills Forecast 2017

• Certificate III in Waste Driving Operations • Certificate III in Logistics • Certificate III in Furniture Removal • Certificate III in Warehousing Operations • Certificate III in Driving Operations • Certificate IV in Stevedoring Operations • Certificate IV in Materiel Logistics • Certificate IV in International Freight Forwarding

(Senior Operator) • Certificate IV in Warehousing Operations • Certificate IV in Transport and Logistics (Road

Transport - Heavy Vehicle Driving Instruction) • Certificate IV in Driving Operations • Certificate IV in Transport and Logistics (Road

Transport - Car Driving Instruction)

• Certificate IV in Logistics • Certificate IV in Mobile Crane Operations • Certificate IV in Transport and Logistics (Road

Transport - Motorcycle Riding Instruction) • Certificate IV in Traffic Operations • Diploma of Logistics • Diploma of Deployment Logistics • Diploma of Materiel Logistics • Diploma of International Freight Forwarding • Diploma of Bus and Coach Operations • Diploma of Customs Broking• Advanced Diploma of Deployment Logistics • Advanced Diploma of Materiel Logistics

The TLI Transport and Logistics Training Package is in the Scope of Registration of 660 Registered Training Organisations.


New South Wales is home to 36% of all T&L enterprises.

TRANSPORT AND LOGISTICS INDUSTRY BUSINESS ANALYSIS

483

BUSINESS NO. (SUM)

TRANSPORT AND LOGISTICS

27,102

The following image provides analysis of the businesses involved in the Transport and Logistics sector (size, local/state/national/global, government/not-for-profit/for-profit, scope of work undertaken by those businesses).

TRANSPORT AND LOGISTICS BUSINESS COMPOSITIONSmall 97.7%Medium 2.1%Large 0.2%

Source: ABS 8165.0 Counts of Australian Businesses, Jun 2012 to Jun 2016

ENTERPRISE DENSITY


KEY TRANSPORT AND LOGISTICS STAKEHOLDERS

STAKEHOLDER CATEGORY ORGANISATION

Employers Asciano Ltd Glen Cameron Group Payne HaulageAllied Pickfords JR Richards Port of NewcastleBORAL Australian Construction Materials Division K & S Freighters Sydney Harbour TunnelBorder Express Linfox Logistics TNTDarwin Ports - Patricks Mini Movers Toll Customised SolutionsDP World Australia Origin Energy TruckrightDyson Group Patricks

Employer Representatives

Australasian Convenience and Petroleum Marketers Association

Bus Industry Confederation Queensland Transport Association

Australian Furniture Removers Association Chartered Institute of Logistics and Transport Supply Chain and Logistics Association of AustraliaAustralian Logistics Council Customs Brokers and Forwarders Council of Australia Victorian Transport AssociationAustralian Taxi Industry Association NT Road Transport Association Waste, Recycling Industry Association (QLD) LtdAustralian Trucking Association Queensland Trucking Association Western Australia Road Transport Association Inc

Employee Representatives

Maritime Union of Australia National Union of Workers Transport Workers Union of Australia

Licensing / Regulatory

National Heavy Vehicle Regulator State and Territory Licensing Authorities State and Territory Work Health and Safety Authorities

Safe Work AustraliaGovernment Federal, State/Territory Departments Department of Mines and Petroleum Department of Transport and Urban Planning

Department of Agriculture Department of Territory and Municipal Services - ACT National Transport Commission Department of Defence Department of Transport Roads and Maritime ServicesDepartment of Immigration and Border Protection Department of Transport and Main Roads VicRoads

Industry Advisory Automotive Training Board - NSW Logistics Training Council - WA TDT VictoriaIndustry Skills Advisory Council - NT TDT South Australia TLI Connect

Training Organisations

TAFEs, Private RTOs, Enterprise RTOs Nationwide Training Wodonga Institute of TAFE

Qube Learning Pty Ltd TAFE Queensland Into Training AustraliaHonda Australia Rider Training (H.A.R.T) Transport Industries Skills Centre (TISC) Charles Darwin UniversityMotorcycle Division Honda TransTrain


INDUSTRY CHALLENGES AND OPPORTUNITIES

AUTOMATION & ROBOTICS Increasing goods to person automation processes will continue to expand to make the fulfilment of e-commerce more effective and efficient. Innovations such as drone technology and robotics is propelling the industry. The first autonomous drone delivery was achieved recently in the US5.

Automation of port operations is ongoing in Australia and the rapid uptake of technology is driving the need for higher order skills in the industry, as well as new skills such as those required for maintenance of automated equipment.

Mining companies are already using autonomous vehicles. Transport vehicles or robots, equipped with artificial intelligence (AI) technology that allows transport of materials to a target location while calculating the optimal route and avoiding humans and obstacles is already available6. Trials involving expansion of this technology into delivery operations are underway7.

The introduction of autonomation and robotics in the Transport and Logistics industry will have a major impact on the economy and workforce as well as other supporting industries. Some predictions assert that driverless truck technology will be implemented in Australia within the decade8. Whether or not this will become a reality, the automation of tasks will continue to replace manual handling activities across the supply chain.

31 per cent of businesses within the transport and storage industries are investigating how to integrate virtual reality (VR) to improve occupational health and safety training9, with key applications being developed.


DISRUPTIVE TECHNOLOGY Crowdsourcing delivery or transport management systems is a reality10. As demonstrated above with drone parcel delivery; automation, robotics and other technology initiatives are being developed by disruptors who are looking to take a slice of the transport and logistics market. How businesses react or grow with technological disruption is yet to be seen, however lessons learnt from Uber and other service platforms is that businesses need to be proactive when devising strategies for providing better services to customers or risk being left out of the market.

Integrated transport facilities are already a reality and a significant focus of research and development activity. Environmental sensors are being combined with traffic-measurement devices and other sensors to help researchers understand the effects of various types of vehicles and congestion levels. This includes investigating the impacts of emerging disruptive technologies such as autonomous, on-demand, shared mobility systems11. The impact of this technology on the Transport and Logistics jobs of the future cannot be underestimated.

INTERNET OF THINGS (IOT) Companies are now using an expanding number of devices, sensors and data methods to connect networks – linking the physical environment to collect data and turn it into useful information. Growth of these analytics is leading to new innovations across communications, systems engineering and security environments to improve transport systems12. IoT will also have an impact on the workforce, driving demand for new skill sets to effectively manage and operate within changing environments.

Worldwide it has been estimated that by 2025, up to $2.5 trillion of additional value will be generated by IoT for the global logistics industry. Spending on connected logistics solutions is expected to more than double between now and 2020 because of IoT’s potential13.


IoT has the capacity to enhance asset tracking, warehousing operations, freight transportation and the development of driverless delivery vehicles. Its application extends to every aspect of the logistics value chain and has already been incorporated into the supply chains of logistics providers14. It will be necessary to develop skills to capitalise on the operational efficiencies, heightened security, improved customer experience and new business models that follow from this technology15.

OMNI-CHANNEL LOGISTICS Customers now expect that they can buy products 24hrs a day, online and instore, on multiple devices simultaneously with the same level of customer service as shopping instore. The change from traditional single channel and multi-channel logistics, omni-channel logistics seamlessly connects the market with highly personalised customer service. It affects marketing, mechanising, ordering systems, fulfilment and returns16. Logistics and supply chains are the key enablers that ensure retailers achieve inventory visibility and optimisation to meet customer demand.

Securing identity for physical property and packaging is going to be a big business opportunity over the next decade, involving high value parts of logistics supply chains and regulated industries like energy, pharmaceuticals and cold chain. The existing workforce will need to be equipped with the necessary digital skills and higher-level skills including problem solving and adaptability if the benefits of this technology are to be fully realised.


SUPPLY CHAIN SUSTAINABILITY Sustainable operating practices are increasingly part of key performance indicators within the industry17

.

Pressure to reduce greenhouse gas emissions, as well as manage environmental compliance parameters, have increased the requirement to undertake sustainable business practices. New technologies and innovative approaches are being implemented to address environmental issues such as driving, energy, vehicles, fuel efficiency and facilities. Alternative fuels, including biogas, bioethanol, biodiesel and hybrid electric buses are making their way into everyday operations, which is particularly evident in the bus and coach industry18. These changes bring consequent impacts for the workforce who need to adapt to changing job demands and develop new knowledge related to safety and operational efficiency.

Supply chain sustainability goes much further than environmental compliance, extending to workforce sustainability. Companies are looking to streamline operations through savings on resourcing and improved productivity performance. These savings have a trickle-down effect onto the workforce. Tesla Motors has recently announced development of an electric truck called the Tesla-semi, which they state will deliver a substantial reduction in the cost of cargo transport19.

Companies are being required to focus more strongly on environmental, social and governance (ESG) performance. Companies will require innovative approaches to workforce development and to standards of performance expected by investors and the workforce alike, into the future. This will have a flow-on effect on labour relations, safety and approaches to addressing multi-factor productivity, requiring a greater depth in human capital performance that will need to be reflected in workforce skills.


SAFETY & REGULATORY ENVIRONMENT Increasing societal focus on road safety is likely to remain a policy focus into the future. This is reflected in the evolution of Chain of Responsibility and other safety measures. As a consequence, the skills required by the workforce will need to keep pace with any future developments.

Any changes made to the regulatory environments within the transport and logistics industry directly affects the workforce, with companies requiring to upskill or retrain workers to meet these requirements e.g. fatigue management. Of note, telematics have been incorporated into the regulatory framework through the Intelligent Access Program (IAP). IAP is also breaking ground internationally, acting as a benchmark for the development of international standards for telematics20.

Australia’s preparedness for global system changes is also critical, as companies don’t want to be hindered by regulatory barriers that stops competition beyond Australia’s borders. Harmonisation between international and domestic regulatory markets will be critical.

EMPLOYMENT


9911,6231,637

1,7972,0842,1182,149

2,215

0 500 1000 1500 2000 2500

ACT

SA

TAS

NT

NSW

QLD

WA

VIC

TRANSPORT AND LOGISTICS WORKFORCE BY STATE PER 100K POPULATION

The T&L workforce per capita distribution follows the wider population distribution closely, with the exception of ACT, Australia’s densest State/Territory

TRANSPORT AND LOGISTICS WORKFORCESource: ABS 6291.0.55.003 - Labour Force, Australia, Detailed


TRANSPORT AND LOGISTICS INDUSTRY WORKFORCE 1984 – 2016

Road Freight Transport comprises the largest sector of T&L at 38% and the greatest growth, more than doubling over thirty years

0

25

50

75

100

125

150

175

200

1984 1988 1992 1996 2000 2004 2008 2012 2016

THO

USA

ND

S

TRANSPORT AND LOGISTICS INDUSTRYWORKFORCE 1984 - 2016

Road Freight Transport Storage and Delivery ServicesRoad Passenger Transport Other Transport Support Services

Source: ABS 6291.0.55.003 - Labour Force, Australia, Detailed

Road Freight TransportStorage and Delivery ServicesRoad Passenger TransportOther Transport Services


EMPLOYMENT HISTORY OCCUPATION BASED

THOU

SAND

S


TRANSPORT AND LOGISTICS INDUSTRY WORKFORCE CASUALISATION 1984 – 2016

Part-time work has doubled from 10% to more than one in five in 30 years

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

1984 1988 1992 1996 2000 2004 2008 2012 2016

TRANSPORT AND LOGISTICS INDUSTRY WORKFORCECASUALISATION 1984 - 2016

Employed part-time ('000) Employed full-time ('000)Source: ABS 6291.0.55.003 - Labour Force, Australia, Detailed

Employed part-time ('000)Employed full-time ('000)



TRANSPORT AND LOGISTICS INDUSTRY WORKFORCE GENDER COMPOSITION 1984 – 2016

Despite nearly doubling over 30 years, the proportion of women in the industry has remained very stable at around 19% of the workforce.

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

1984 1988 1992 1996 2000 2004 2008 2012 2016

TRANSPORT AND LOGISTICS WORKFORCEGENDER COMPOSITION 1984 - 2016

Males Females Source: ABS 6291.0.55.003 - Labour Force, Australia, Detailed

MalesFemales



PROJECTED AND HISTORICAL TRANSPORT AND LOGISTICS WORKFORCE 2005 – 2022

The T&L workforce is expected to grow by 4.5% in the coming 5 years, keeping pace with growth over the previous five years

EMPLOYMENT PROJECTION EMPLOYER BASED

0

20

40

60

80

100

120

140

160

180

2005 2007 2009 2011 2013 2015 2017 2019 2021

THO

USA

ND

S

PROJECTED AND HISTORICALTRANSPORT AND LOGISTICS WORKFORCE 2005 - 2022

Freight Passenger Storage and Delivery Other

Sour

ce: I

BISW

orld

TOD

AY

Freight

Passenger

Storage and Delivery

Other

Source: IBISWorld

THOU

SAND

S


EXPLANATORY NOTESWorkforce The size of an industry’s workforce is established by the Australian Bureau of Statistics (ABS) using two different approaches. The Labour Force survey, which provides a 30-year view of the industry, assigns each industry category based on the main job of the respondent. The Australian Industry dataset (which the Workforce Projections charts are based on), uses a top down approach where industries are primarily classified by the single predominant industry class associated with a business’ ABN. An industry’s workforce therefore is bound in the first instance by the occupations of workers and in the second by the primary business of an enterprise. The different approaches can therefore result in quite different workforce figures.

AIS has chosen to distinguish these approaches using the terms Workforce – Occupation based and Workforce – Employer based.

Enterprise size Industry definition by ABN also applies to the Counts of Australian Businesses data (size and distribution). Furthermore, low-level values in these tables are subject to perturbation to anonymise the data. This may result in some areas with a low-level value being perturbed to zero.

ExemptionsThe scope of the Labour Force Survey is limited to the civilian population of Australia and therefore members of permanent defence forces are excluded from the survey.


TRANSPORT AND LOGISTICS INDUSTRY SKILL SHORTAGES

TRANSPORT AND LOGISTICS SKILL SHORTAGES87.17 per cent of employers reported experiencing a skills shortage in the last 12 months21. The occupations reported as being in shortage were:

1. Truck Drivers

2. Trainers/assessors

3. Logistics Supervisors/Managers

4. Warehousing Staff

5. Forklift Drivers

Employers identified the following reasons for the shortage with the most frequent response listed first.

Reasons for shortageShortage of skilled/qualified personnel

Ageing workforce/current staff retiring

Remuneration/employment conditions

Unattractive job/poor industry image

Cost/time to achieve the required qualification


AGEING WORKFORCE, INDUSTRY ATTRACTION AND WORKFORCE FLEXIBILITYThe Transport and Logistics workforce is the second oldest workforce in the country22, with a large proportion of workers set to retire in the next decade23. Succession planning will impact the industry.

The industry currently faces a recruitment challenge, whereby attracting, training and retaining young workers to undertake a career in the sector is proving to be a challenge. Compounding the issue is the increasing use of sub-contracting and other new forms of employment engagement within the industry.

Stakeholders report that part of the difficulty attracting young drivers is that the occupation isn’t seen as a professional position, which when coupled with the industry’s poor perception in the broader community, amounts to a significant barrier. Career progression is often limited in driving roles and career pathways are often not clear. Growth tends to be within existing roles instead of progressing further in the industry.

WORKFORCE SUPPLY SIDE CHALLENGES & OPPORTUNITIES

Transport and Logistics IRC Skills Forecast 2017

WORKPLACE DIVERSITYTransport and Logistics is characterised by immense diversity in types of business and range of occupations. However, this does not translate to diversity in workforce demographics. The majority of the workforce are men and stakeholders report a perception that most work undertaken is stereotypically ‘masculine’. Women are predominately employed in support roles such as administration, human resources, procurement and finance. Initiatives to make roles more flexible and attractive to sections of the broader community not traditionally engaged in the Transport and Logistics workforce would benefit in this regard.

While the advancement in technology has arguably increased employment opportunities for women, barriers still exist with certain job roles considered too dangerous or impractical for females in the minds of those doing the recruiting. There is evidence that shows females in the Transport and Logistics sectors on average have higher education levels than their male counterparts, with 18.3 per cent achieving a diploma or higher, compared with 11.7 per cent of males. This demonstrates that women have the desire, skills and knowledge to meet job requirements in this changing and advancing industry.

According to research conducted, one in five employees in the wider transport industry is female. Male managers in the industry outweigh female managers by 4 to 1 and under 15 per cent of directors on transport company boards are women. And although the industry has experienced growth of 28 per cent in the last decade, female representation in the industry has increased by one per cent only24.


SKILLS OUTLOOK


SKILLS OUTLOOK

INTERNATIONAL/NATIONAL WORKPLACE TRENDSThe Transport and Logistics sector is changing at a phenomenal pace and companies require their workforce to be agile and responsive to meet the skills demands created by new technologies, automation and other innovations as they evolve.

Providing the right training at the right time will be crucial for companies. Forecasting the skills gaps within the industry and then skilling the workforce in preparation for these changes will be an essential part of workforce planning. Lean management styles often mean that companies cannot afford the loss of key staff to training.

Companies will require high quality training that allows for flexibility in training options.

While innovation is considered to be important by numerous Australian organisations, a recent survey of companies found that only one in five consider their supply chains to be innovative – despite the majority including it in their business strategy. These organisations also noted the top influencers driving innovation as competitive forces, customer behaviours and corporate responsibility, with omni-channel, last-mile delivery and the regulatory environment having lesser importance25. There is a clear requirement to focus workforce skill development in these key areas.


RESPONDING TO TECHNOLOGICAL CHANGE The rapid uptake of technology is driving the need for higher order skills in the industry, as well as new skills to maintain automated equipment. Automation of port operations is ongoing in Australia and companies are already using autonomous vehicles, in addition to artificial intelligence (AI) technology26. As IoT continues to develop, corresponding skills will be called for to take advantage of the improved asset tracking, warehousing operations and freight transportation that it offers27.

Industries affected by the advent of new technologies have the opportunity to contribute to their design and development, while also having scope to prepare their workforce for potential paradigm shifts. Providing training in advanced analytics, communication practices and next-generation information technologies will be beneficial in the long-term28. Disruptive technologies – such as multi-modal hubs and intelligent docks in smart cities – also require updated proficiencies29.

FUNDINGVariations in jurisdictional funding and traineeship arrangements are reported as impacting the viability of delivering training, in particular for narrow markets and in specialist technical areas. Longer-term this situation may lead to capacity constraints for employers and training organisations alike. These conditions also present challenges for RTOs when considering future investment in training infrastructure and equipment, particularly those involved in new technology.


PRIORITY SKILLSThe priority skills results are drawn from Transport and Logistics stakeholder responses to the IRC Skills Forecast survey conducted in February 2017.

In order of priority to the industry, the following skills were identified as the most important for the Transport and Logistics workforce within the next three to five years.

Skill CategoryCompliance

Driving

WHS

Technical

Adaptability

Ranking of the 12 generic workforce skills in order of importance to the Transport and Logistics industry.

Generic SkillManagerial/LeadershipCustomer service/MarketingDesign mindset/Thinking critically/System thinking/Solving problemsTechnologyLearning agility/Information literacy/Intellectual autonomy and self-managementLanguage, Literacy and Numeracy (LLN)Communication/Virtual collaboration/Social intelligenceScience, Technology, Engineering, Mathematics (STEM)Environmental and SustainabilityFinancialData analysisEntrepreneurial


The Transport and Logistics industry is a cornerstone of Australia’s economy, ensuring freight and passenger transport movements around a large country with a disparate population. The industry employs more than 474,000 people and is predicted to increase by 4.5 percent through to 2022.

Collectively, the Road Transport, Logistics, Warehousing and Ports industry have an estimated annual revenue of $95.3 billion, adding $39.2 billion to the Australian economy in 2016. Australia’s freight task is forecast to increase by 26 per cent over the next decade, and alongside the increasing take up of technology to support industry operations, infrastructure and expansion, the pressure to ensure a well-trained and skilled workforce is clear.

The skills involved in Transport and Logistics are wide ranging and the industry is supported in the development of these skills by the TLI Transport and Logistics Training Package which contains qualifications in Logistics and Warehousing, Road Transport, International Freight

Forwarding and Customs Broking, Materiel and Deployment Logistics, and Ports.

Transport and logistics is characterised by immense diversity in types of business and range of occupations. However, this does not translate to diversity in workforce demographics with women comprising 19% of the entire workforce, a result which has only increased by one per cent in the last decade.

Total VET activity enrolments dropped by 20 per cent in 2015. While this appears to be a substantial reduction, the drop off can be more than accounted for in the decline of enrolments in only two qualifications. Certificate II and III in Warehousing fell 29 per cent and 61 per cent respectively, or more than 30,000 enrolments across most States and Territories (particularly Victoria).

These reductions can be mostly attributed to a reduction in government subsidies and restricted eligibility for funding. Removing these qualifications from the data, the remaining TLI Transport and Logistics Training Package

TRANSPORT AND LOGISTICS SKILLS-RELATED INSIGHTS


enrolments actually grew by 7 per cent in the same period. Queensland and Victoria have the highest per capita enrolments in Transport and Logistics qualifications accounting for nearly 75% of total TLI enrolments.

More than 87 percent of Transport and Logistics employers who responded to the 2017 IRC Skills Forecast Survey experienced a skills shortage within the last 12 months. The main reasons provided by industry for these shortages included a lack of qualified workers and an ageing workforce, combined with high rates of retirement. The Transport and Logistics workforce is the second oldest in the country, with a large proportion of workers set to retire in the next decade. This could lead to a loss of vital business and industry knowledge if succession planning is not implemented.

Any changes made to the regulatory environments in the Transport and Logistics industry directly affect the workforce, with companies requiring to upskill or retrain workers to meet these requirements e.g. fatigue management, Chain of Responsibility, and Workplace Health and Safety (WHS). Industry have indicated that compliance, driving and WHS skills are their highest priority over the next five years.

Digitalisation and advances in technology are changing the nature of work in the Logistics sector. Specialised computer skills, problem-solving and analytic skills, and more sophisticated contract management practices are driving a more integrated approach to logistics management. Drones and robotics are providing new solutions for the industry and technology is driving the need for higher-order skills including the ability to effectively manage and operate within ever changing environments. Innovative supply chain practices driven by market competition and customer demand will require agile workforces with the capability to adapt to changing demands and business models.

There is evidence that a shortage of truck drivers continues in some locations, with industry also concerned about availability of trainers and assessors with the requisite skills and experience to support the workforce to productively adapt to new technology.

Providing the right training at the right time will be crucial for companies. Lean management styles often mean that companies cannot afford the loss of key staff to training which means RTOs will need to innovate and offer flexible training options to develop the future Transport and Logistics workforce.


TLI PROGRAM ENROLMENTS BY DATASET

Enrolment growth almost tripled from 2007 to 2014 before falling by a quarter. Total VET Activity corroborates the data with a drop of 20% in the same period.

0

20000

40000

60000

80000

100000

120000

140000

2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015

ENRO

LMEN

TSTLI PROGRAMENROLMENTS BY DATASET

National VET Provider Collection Total VET Activity

Sour

ce: V

OCS

TATS

Total VET Activity

National VET Provider Collection

ENRO

LMEN

TSSource: VOCSTATS


TLI ENROLMENTS PER 100K POPULATION

0100200300400500600700800900

ACT NSW NT TAS WA SA VIC QLD

Enro

lmen

tsTLI Enrolments per 100k population

Source: TVA program enrolments2015

Source: TVA program enrolments 2015

ENRO

LMEN

TS

Not only do Queensland and Victoria have the highest per capita enrolments, nearly 75% of total TLI enrolments occurred in those States alone


TLI UNITS BY FUNDING SOURCE

Industry contributed one third of funding for the T&L training package in 2015

Domestic Fee for Service

Commonwealth and State Funding34%

66%

TLI UNITS BY FUNDING SOURCE

Domestic fee for service

Commonwealth and state funding

Source: TVA - Subject Enrolments 2015

Source: TVA - Subject Enrolments 2015


EXPLANATORY NOTESTraining Enrolments Charts The Training Enrolments charts compare two datasets; the National VET Provider Collection and the Total VET Activity (TVA) dataset. The primary distinction between the two is that Total VET Activity data is collected from all types of providers and not only those in receipt of Commonwealth or state funding. TVA data collection commenced in 2014.

Exemptions Where the submission of training data to TVA conflicts with defence or national security legislation, or jeopardise the security or safety of personnel working in defence, border protection, customs or Australian police departments, an exemption from reporting training data is available.

Organisations that deliver training for vital services to the community (such as emergency, fire, first aid and rescue organisations) may have received an exemption to submit data to TVA. From 1 January 2016 however, the exemption from reporting applies only in respect of training activity not delivered on a fee-for-service/commercial basis.


REFERENCES

1 IBISWorld Industry Reports. http://www.ibisworld.com2 National transport Commission (NTC). August 2016. What moves what where: Freight and passenger transport in Australia.3 Australian Government, Infrastructure Australia. April 2015. Australian Infrastructure Audit: Our infrastructure challenges, executive summary.4 National Australia Bank. December 2016. NAB online retail sales index: Indepth report.5 Transport and Logistics News. Charles Pauka. First-ever FAA-approved drone delivery to customer’s home. 27 July 2016.6 Kyodo News JBN. OMRON Launches Promotional Website for AI-equipped Mobile Robot LD Series. February 1 2017.7 Prime Mover Magazine. FedEx reveals ‘game-changing’ automated delivery technology. 9 February 2017. 8 Allianz. In Australia self driving trucks are closer than you think. 2016. 9 Procurement and Supply Australasia. Aussie business owners turn immersive tech into a (virtual) reality. 24 February 2017. 10 Ken Lyon. Ti Crowd sourcing and Uberisation. 29 October 2015. 11 Majid Sarvi. City streets become a living lab that could transform your daily travel. 23 February 2017. 12 NICTA. July 2016. 13 Logistics & Materials Handling. Deutsche Post DHL and Huawei to work together on IoT supply chain tech. 17 February 2017. 14 Logistics & Materials Handling. Deutsche Post DHL and Huawei to work together on IoT supply chain tech. 17 February 2017. 15 DHL. Trend Report: The Internet of Things. 2015.16 DHL. Omni-Channel Logistics: A DHL Perspective on Implications and Use Cases for the Logistics Industry. 2015. 17 DHL. Delivering Tomorrow: Towards Sustainable Logistics. 2010.18 Australasian Bus & Coach. Scania Electric Bus Trial. 16 February 2017. 19 Financial News, Analysis & Data. Lithium Rising As Electric Vehicles Take Hold. 10 February 2017. 20 NTC. Review of the Intelligent Access Program. November 2014. 21 Australian Industry Standards. February 2017. IRC Skills Forecast Survey.22 Transport and Logistics Industry Skills Council. 2015 E-Scan. 2015. 23 ABS, Retirement and Retirement Intentions.2015.24 Michael Kilgariff. Diversity and inclusion. February 2016. 25 Transport and Logistics News. Charles Pauka. Is your supply chain innovative? 19 January 2017. 26 Kyodo News JBN. OMRON Launches Promotional Website for AI-equipped Mobile Robot LD Series. February 1 2017.27 Logistics & Materials Handling. Deutsche Post DHL and Huawei to work together on IoT supply chain tech. 17 February 2017. 28 NSW Department of Transport. Future Transport Technology Roadmap Overview. 2016.29 Parking Australia. Smart Parking Expands into Intelligent Docks for Smart Supply Chains. 7 March 2016.

PROPOSED SCHEDULE OF WORK2017/18 - 2020/21 TRANSPORT AND LOGISTICS IRC Sub

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TRANSPORT AND LOGISTICS IRC PROPOSED SCHEDULE OF WORK

REVIEW PLAN – TIMING AND PRIORITISATIONIn this Proposed Schedule of Work, the Transport and Logistics IRC have identified Training Package development priorities to address the challenges of an ageing workforce, increased service demands of customers and the introduction of new technologies. Evolving technologies such as robotics, automation, autonomous vehicles and the application of big data will require that workers have the necessary skills to ensure that industry obtains the productivity and efficiency benefits in a highly competitive environment both locally and globally.

Identified regulatory changes that affect qualifications, skill sets or units of competency have been included in this review.

The IRC does not anticipate that any qualifications, skill sets or units of competency will require review more than once in the four-year period. The exception to this will be where there is regulatory, legislative or Industry-driven change due to safety requirements, specific skill needs or technological advancement.

The IRC has not identified any Training Package product review or development work that is expected to be contentious or lengthy in development.

2017 – 2018In response to the rapid uptake of new technologies as well as increases in the service expectations of customers, it is proposed to review the Certificate III in Logistics to meet the changing skills requirements of industry. This review is considered an imperative to ensure Australian Transport and Logistics businesses remain viable and competitive.

As the reliance on road transport increases, industry is seeking new and innovative ways to improve efficiency. The impact of congestion on transport enterprises and the road system is significant. Mobile delivery docks and urban consolidation centres are being developed, and along with

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© Australian Industry Standards Ltd. Transport and Logistics IRC Skills Forecast 2017

emerging technologies in Traffic Control, will provide solutions to cope with congestion and demand. A review of the Certificate IV in Traffic Operations will address the specific skills and knowledge needed to improve congestion problems and drive efficiency through the implementation of these innovative approaches.

Annually, industries across the Supply Chain are spending significant amounts of money in controlling the movement of pallets. The skills required to ensure pallet movements are effectively and efficiently controlled are critical for businesses operating in typically low margin industries where the high-cost burden of poor pallet control can lead to significant financial losses. The development of units of competency and a skill set will support the skills development requirements of industries throughout the Supply Chain.

Changes to Heavy Vehicle National Law (HVNL) will have implications for the three current Chain of Responsibility units in the TLI Training Package. A review will be required to ensure these units accurately reflect the skills and knowledge requirements of workers who have responsibilities under the legislation.

The Department of Agriculture and Water Resources has

informed the IRC of impending reforms to biosecurity border clearance regulations, which have a direct link to the units of competency contained within the TLI50316 Diploma of International Freight Forwarding. A review of the impacted units within this qualification will ensure Freight Forwarders have the necessary skills to maintain compliance with the regulatory reforms.

Training Package products for review during this period:

• TLI32416 Certificate III in Logistics• TLI42516 Certificate IV in Traffic Operations• TLI50316 Diploma of International Freight Forwarding• TLIF0001 Apply chain of responsibility legislation,

regulation, and workplace procedures• TLIF0002 Administer chain of responsibility policies and

procedures• TLIF0003 Develop and implement policies and

procedures to ensure chain of responsibility complianceTraining Package products for development in this period:

• New unit(s) of competency and skill set for Pallet Control The previously identified need for the review of High Risk Work Licence units to improve safety outcomes was approved in advance by the AISC in February 2017.

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2018 - 2019Technology advancements, which are in part driven by the application of big data, will lead to changes to the skills required in Stevedoring. Advancements in the design of container ships are seeing an increase in their size and overall capacity, which in turn will lead to changes in the skills needs of stevedores responsible for loading and unloading. To maximise the gains offered by these productivity developments, there will be a need to review the three current Stevedoring qualifications to incorporate the required skills. The review will also ensure that cargo related regulatory requirements of AMSA Marine Orders 32, 41, 42 and 43 are effectively addressed.

In response to the identified industry challenge of an ageing workforce, and attraction and retention of truck drivers, it is proposed to develop a ‘Driver Professionalisation’ skills strategy. This would include a review of the three Driving Operations qualifications (Certificates II, III and IV) and articulating career pathways in driving, warehousing, logistics and across Supply Chains.

Safe driving skills have been identified for review in this period. This review would include relevant driving units, skill sets and with the cooperation of State and

Territory licencing authorities, driving instruction units and qualifications. This will follow on from work undertaken by the IRC in 2017-18 and will involve identification of the specific units of competency, qualifications and skill sets to be included in the review.

Training Package product review during this period:

• TLI21416 Certificate II in Stevedoring• TLI33516 Certificate III in Stevedoring• TLI41715 Certificate IV in Stevedoring Operations• TLI21216 Certificate II in Driving Operations• TLI31216 Certificate III in Driving Operations• TLI42116 Certificate IV in Driving Operations• Safe driving skills units, skill sets and qualifications as

identified

2019 - 2020Owner Drivers make up a significant proportion of Road Transport workers and, as small business operators, need a broader range of skills and knowledge including business administration, finance and compliance. A review of the units in the current Owner Driver skill set will determine any need to add additional business and/or compliance skills, while also considering qualification options available

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in other Training Packages to support further skill development.

Training Package products for review in this period:

• Owner Driver skill set and associated units of competency

2020 – 2021TLI Training Package qualifications, skill sets and units of competency that have not had been subject to review or development between 2017 and 2020, will be reviewed in this period. The review will examine all stakeholder feedback and involve consultation with additional stakeholders, including regulatory bodies, on the currency and flexibility of the current qualifications.

LEGISLATIVE /REGULATORY REQUIREMENTSThe TLI Training Package has multiple units of competency that are aligned to or form part of Australian legislative or regulatory requirements. The range of regulatory requirements include Heavy Vehicle National Law, Road Law to Work Health and Safety legislation. Should legislative or regulatory requirements change, the review

or development of the TLI Training Package may take precedence over other reviews planned as these are often associated with a higher workplace risk.

INTERDEPENDENCIESThe TLI Training Package qualifications include imported units of competency within core and elective qualification packaging rules. Industry sector interdependencies that will potentially initiate future Transport and Logistics qualification reviews include imported units from eighteen (18) interdependent Training Packages (inclusive of predecessor releases):

• BSB Business Services Training Package• HLT Health Training Package• MAR Maritime Training Package• SIR Retail Services Training Package• CPC Construction, Plumbing and Services Training

Package• CPP Property Services Training Package• RII Resources and Infrastructure Industry Training

Package• MSS Sustainability Training Package• FWP Forest and Wood Products Training Package

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• PMC Manufactured Mineral Products Training Package• UEG11 Gas Industry Training Package• PSP Public Sector Training Package• TAE Training and Education Training Package• AHC Agriculture, Horticulture and Conservation and

Land Management Training Package• AUR Automotive Retail, Service and Repair Training

Package• PUA12 Public Safety Training Package• SIT Tourism, Travel and Hospitality Training Package• FDF10 Food Processing Training PackageTraining Packages that import units from Transport and Logistics qualifications include:

• AVI Aviation Training Package• RII Resources and Infrastructure Industry Training

Package• CUA Creative Arts and Culture Training Package• AMP Australian Meat Processing Training Package• MST Textiles, Clothing and Footwear Training Package• MSF Furnishing Training Package• PPM Pulp & Paper Manufacturing Industry Training

Package

• FWP Forest and Wood Products Training Package• AUR Automotive Retail, Service and Repair Training

Package• MSM Manufacturing Training Package• SIT Tourism, Travel and Hospitality Training Package• PMC Manufactured Mineral Products Training Package• CHC Community Services Training Package• MAR Maritime Training Package• AHC Agriculture, Horticulture and Conservation and Land

Management Training Package• PMB Plastics, Rubber and Cablemaking Training Package• PMA Chemical, Hydrocarbons and Refining Training

Package• HLT Health Training Package• BSB Business Services Training Package

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PROPOSED SCHEDULE OF WORK - 2017/18 - 2020/21Transport and Logistics Industry Reference Committee Contact: Chief Operating Officer, Australian Industry Standards Date Submitted: Friday, 28 April 2017

PLANNED REVIEW START

(YEAR)TRAINING

PACKAGE CODETRAINING

PACKAGE NAMEQUALIFICATION

CODEQUALIFICATION

NAMEUNIT OF

COMPETENCY CODE

UNIT OF COMPETENCY

NAME2017-2018 TLI – Transport and Logistics

Training PackageTLI32416 Certificate III in

LogisticsReview the qualification to ensure it meets skills demand of changing job roles.

2017-2018 TLI42516 Certificate IV in Traffic Operations

Review the qualification to ensure that it meets industry skills needs in relation to the changing technologies.

2017-2018 Develop new units of competency and skill set for Pallet Control to meet industry skills needs.

New units of competency and skill set.

2017-2018 TLI50316 Diploma of International Freight Forwarding

Review the qualification to incorporate new legislation requirements relating to border clearance.

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(YEAR)TRAINING



CODEQUALIFICATION

NAMEUNIT OF

COMPETENCY CODE

UNIT OF COMPETENCY

NAME2017-2018 Review units of competency to

ensure alignment to Heavy Vehicle National Law changes

TLIF0001

TLIF0002

TLIF0003

Apply chain of responsibility legislation, regulation, and workplace procedures.

Administer chain of responsibility policies and procedures.

Develop and implement policies and procedures to ensure chain of responsibility compliance. S

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(YEAR)TRAINING



CODEQUALIFICATION

NAMEUNIT OF

COMPETENCY CODE

UNIT OF COMPETENCY

NAME2018 - 2019 TLI – Transport and Logistics

Training PackageTLI21416

TLI33516

TLI41715

Certificate II in Stevedoring

Certificate III in Stevedoring

Certificate IV in Stevedoring Operations

Review qualifications to incorporate the skills needs of industry to meet technological advancements and to ensure alignment with regulatory requirements.

2018 - 2019 TLI21216

TLI31216

TLI42116

Certificate II in Driving Operations

Certificate III in Driving Operations

Certificate IV in Driving Operations

Review qualifications to support attraction and retention strategies through skills development and articulated pathways

2018 - 2019 Review Owner Driver Skill Set Review of Owner Driver skill set to ensure appropriate coverage of business and compliance skills

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(YEAR)TRAINING



CODEQUALIFICATION

NAMEUNIT OF

COMPETENCY CODE

UNIT OF COMPETENCY

NAME2018 - 2019 Safe driving skills review Review of relevant units of

competency, skill sets and qualifications as identified

2019 - 2020 TLI – Transport and Logistics Training Package

Commence reviewing the remaining qualifications within the TLI Training Package that have not been reviewed within the four-year period. The order of work to be prioritised based on industries usage of the qualifications or immediate skills and knowledge requirements of Industry.

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AUSTRALIAN INDUSTRY STANDARDSAustralian Industry Standards (AIS) provides high-quality, professional secretariat services to the Transport and Logistics Industry Reference Committee, in our role as a Skills Service Organisation.

AIS provide services to eleven allocated IRCs which also cover the Gas, Electricity, Electrotechnology, Corrections, Public Safety (including Police, Fire and Emergency Services, Defence), Water, Aviation, Rail and Maritime industries. AIS supports these important industry sectors using our world class in-house capability and capacity in technical writing, quality assurance, project management and industry engagement in the production of training packages.

AIS was established in early 2016, 20 years after its predecessor the Transport and Logistics Industry Skills Council (TLISC) was established in 1996. More information about AIS can be found at www.australianindustrystandards.org.au

• We support industry growth and productivity through our modern innovative approach to establishing skills standards.

• We provide high-quality, professional secretariat services to help our allocated industry reference committees develop the skills that industry needs.

• We partner with industry to shape the workforce of the future.

http://www.australianindustrystandards.org.au


Australian Industry Standards acknowledges the financial support received by the Commonwealth to operate as a Skills Service Organisation.

AUSTRALIAN INDUSTRY STANDARDS

P (03) 9604 7200 E [email protected] Level 2, 31 Market Street South Melbourne 3205

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