Moving Freight in the Urban

Environment – Looking Beyond the Dollar

National Local Roads & Transport Congress 11 July 2006

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, & major logistics companies

• Mission:

“To unite and represent a professional and safe Australian trucking industry.”

Industry Creates NationalWealth

• We are a vital industry – create wealth & improvement of national standard of living

• We represent around 3.5% of the GDP of this country (about $30b)

• Over 180,000 employees in the hire and reward business of transport & over 49,000 transport operators

• Trucking industry of world standard

ATA & Local Government

• Joined ATA as CEO in March 06

• Councillor for 12 years- 8 as Mayor

• Personal understanding of the importance of the relationship between ATA and ALGA, who are partners (with AAA & College of Road Safety) in the SaferRoads Project

Trucking Pays Its Way

• Important to recognise that trucking pays its way

• Trucking pays $1.8b for roads towards construction and maintenance expenses of just $1.62b

• All Australian Transport Ministers recently rejected National Transport Commission’s recommendations for diesel excise and registration increases in 3rd HV Charges Determination

Council of Australian Governments (COAG)

• COAG( including ALGA President) agreed at

its meeting last February: -Harmonise & reform rail and road regulation within five years -Strengthen and coordinate transport planning and project appraisal processes -Reduce current and projected urban transport congestion.. informed by review.. options for managing congestion focusing on national freight corridors

Trucking’s Challenge

• COAG also initiated Productivity Commission Inquiry into Road and Rail Infrastructure Pricing

• ATA welcomed COAG initiatives

• ATA’s Productivity Commission Submission = the further you drive, the more tax you pay, and the heavier the load the more tax you pay

Major Freight Task

• Major challenge for the trucking industry = Government forecasts Australia’s freight task will double between 2000 & 2020

• ..forecasts suggest that most of the growth will be on road, despite some shifts to rail for port shuttles Source: Twice the Task NTC 2006

• Report states that doing nothing will lead to increased road/rail congestion

Road Freight Growth

• Currently estimates are that only 9-15% of non bulk freight is contestable between road and rail

• In Australia, there are 810,000 kms of roads & about 44,000 kms of rail

• Emphasise that we are not anti rail- but it should be assisted independently of road

• We do not want increased taxes and charges on road freight operators to make rail more competitive

Local Government Roads & Transport Draft Strategy

• Agree with thrust of strategy, but reiterate trucks do pay their way

• Note strategy acknowledges need to protect freight corridors and supports more productive vehicles

• We would support local government with increased funding under Roads to Recovery and other programs such as AusLink Strategic Regional Program

Trucks

• Trucks are increasingly needed• Emissions & noise standards of

trucks have greatly improved with

ADRs eg 80/01 & 80/02• Suspension improvements led to

noise reduction• Productivity improved with B-

doubles = 30-40% increase

Safety• Trucks are not involved in 90% of fatal accidents. Where trucks are involved, two thirds are not responsible

• Australian Transport Safety Bureau = 2000-2005 reduction of 22% in fatal crashes involving articulated trucks

• NTC study ( 2006) noted 74% of drivers surveyed felt no pressure to speed & company policies were an effective compliance measure

• Safe-T-Cam in SA = 99%+ compliance for trucks over 8 months

Consultation re Freight Task

• Modern consumers demand an

increasing range of products quickly• Trucking industry plays vital role in

economic lives of communities• Need discussions with ALGA, &

through it local councils to manage & improve urban road freight

• Reiterate ATA would support Councils

obtaining AusLink funds

Challenges

-Raptour Report 2005 (Prof Kim Hassall) highlights that heavy vehicles are regulated but not LCVs and 4WDs now 2m+ which“strangle the fluidity of our freight & passenger arteries”

-Need harmonised regulation. In global economy still have differences in Australia eg NSW OH&S fatigue regulations

-Also need sensible regulation eg some fatigue regulations can increase congestion by forcing driving in peak hours

Productivity Gains

• Performance Based Standards (PBS)

- Focuses on vehicle behaviour rather than prescription for vehicle standards- NTC Steering Committee- ATA’s position

• Higher Mass Limits (HML)

- Essential for industry-AusLink - In NSW crucial role for Councils in permitting travel 100k from routes

Productivity Gains

• Industry uses cutting edge technology for vehicles such as GPS- a

productivity/management tool: can be utilised for tracking of loads etc• Intermodal terminals Important for logistics providers Rail could be used at ports• Enhanced distribution systems- may reduce trip numbers

Productivity Gains

• Also for meeting community expectations:

-dedicated freight lanes: justified by freight volumes

-lane sharing: utilised with bus & taxi lanes

-freight traffic preference periods: avoid peak times

Conclusions

• Appreciate being invited to be here today

• Essential that ALGA and ATA have a close working relationship as sector representatives

• With co-operation & understanding between local government and the trucking industry, the ever increasing road freight task can be managed to deliver better outcomes for communities

Australian Trucking Association

Thank you