Infrastructure encroachment risks strangling supply chain: ALC


Australian Logistics Council managing director Michael Kilgarrif. Australian Logistics Council managing director Michael Kilgarrif. Australian Logistics Council managing director Michael Kilgarrif.
Hundreds attended the 2016 CeMAT materials handling exhibition in Melbourne yesterday. Hundreds attended the 2016 CeMAT materials handling exhibition in Melbourne yesterday. Hundreds attended the 2016 CeMAT materials handling exhibition in Melbourne yesterday.

Kilgariff warns CeMAT audience on economic cost of thoughtless development

 

New urban developments are increasingly encroaching on the efficient running of factories, ports and freight links in Melbourne and Sydney, according to Australian Logistics Council managing director Michael Kilgariff.

Large ports need space to operate productively and that includes easy or delay-free access in the immediate vicinity, Kilgariff explained during his keynote speech at the 2016 CeMAT materials handling exhibition in Melbourne yesterday.

"When we talk about getting the supply chain right, we need to consider the impact that the construction of new developments in the vicinity of our largest ports has on productivity," Kilgariff says.

"We will work with the Turnbull government and state governments to make sure development is approved in line with what we are trying to achieve.

"If we can increase the efficiency of our supply chain by just 1 per cent, that would drive a $2 billion economic benefit to Australia."

He says this sentiment was reinforced by last years’ Infrastructure Australia 15-year report, which urged the Federal Government to increase its investment in well-planned infrastructure to help the economy prosper.

"The volume of freight going through our ports will grow enormously in the next 30 years and we need to be ready for that," Kilgariff says.

"The challenge is, how are we going to move all this extra freight efficiently through our cities?"

He highlighted the importance of the Inland Rail Project linking Brisbane and Melbourne ports, which he says will ease the burden on roads and make the movement of overland freight a lot more efficient.

An infrastructure minister is yet to be appointed, but Kilgarrif says as soon as this happens, he will engage with him or her on policies that may help plant, logistics and construction businesses to prosper, become more productive and globally competitive.

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