ALC prods government over congestion cost

BITRE report gives industry group opportunity to reinforce efficiency message

ALC prods government over congestion cost
Michael Kilgariff wants efficiency for moving both people and freight.


The Australian Logistics Council (ALC) has sought to remind governments that freight values are central to economic cost of road gridlock.

The latest Bureau of Infrastructure, Transport and Regional Economics (BITRE) national road congestion report.

predicts the social and business cost of the status quo could rise as much as of $37.3 billion in by 2030.

Such impediments affect "both passenger vehicles and heavy vehicles, which ultimately stifles efficiency and adds to costs", ALC CEO Michael Kilgariff says.

With the logistics industry estimated to add around $131.6 billion a year or 8.6 per cent to gross domestic product, "it is vital that all levels of government give equal consideration to the movement of freight as they do to the movement of people", Kilgariff adds.

"This particularly relates to infrastructure projects which improve the efficiency of our export supply chains, including those to and from our major city ports.

"Addressing congestion in our cities requires a multi-faceted approach from all levels of government, and the fact that the Commonwealth has strongly committed to investing in our cities is a welcome development, particularly in light of these new congestion cost figures. 

"However, any new federal approach to moving people should not be at the expense of supporting supply chain projects to move freight more efficiently. 

"Failure to appropriately fund key logistics projects would not make economic sense, particularly when you consider that a 1 per cent improvement in supply chain efficiency will yield a $2 billion-a-year benefit to the national economy. 

"With Australia’s freight task predicted to double between 2010 and 2030 and triple by 2050, it is crucial that policy makers give equal priority to freight in their investment and policy decision."


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