Better utilising existing infrastructure through supply chain collaboration is proving successful, but business is still letting commercial interests get in
Better utilising existing infrastructure through supply chain collaboration is proving successful, but business is still letting commercial interests get in the way of productivity gains.
That’s the view of Nick Dimopoulos, Chief Executive of the National Transport Commission (NTC) which is studying significant supply chains to reduce congestion and improve logistics efficiencies.
As part of the Capacity Constraints and Supply Chain Performance work agenda, led by South Australia, the NTC is progressing national pilot studies across intermodal transport, meat and livestock, grain and coal supply chains.
Dimopoulos reveals early findings from the studies show “sweating” infrastructure and transport assets harder through collaborating distribution networks is delivering results.
But, as he told the Ports Australia conference in Brisbane last week, self-interest remains a barrier.
“No-one wants to bear the cost of genuine collaboration. Coordination by consensus isn’t working well for Australia,” he says.
Dimopoulos says Australia can tip the scales back in favour of domestic industries by modernising regulations and infrastructure.
“Our clear objective is to remove regulatory, pricing, competition and infrastructure constraints that strangle supply chain efficiency,” he says.
The supply chain studies will feed into the country’s first integrated national transport policy across all modes of transport for passenger and freight networks.
The Commission is also running a high-level review of rail productivity as part of its work agenda.
Container trade handled by Australia’s ports could increase from 5.1 million units to 18 million by 2030, which Dimopoulos says calls for nationally coordinated land-use planning to support growing seaports and freight terminals.
He says the volumes and economics for rail as a solution to growing port congestion “don’t stack up”.
The Rail Productivity Review will identify reform opportunities to better connect transport networks and improve rail capacity and service.
A national website resource for the supply chain pilots has been created to keep stakeholders informed of progress. Recommendations on the role of government will be made to transport ministers, and other bodies such as Infrastructure Australia.