1. Click to edit Master title style Click to edit Master subtitle style BUREAU OF TRANSPORT & REGIONAL ECONOMICS-TRANSPORT COLLOQUIUM 05 Future Opportunities and Challenges Facing the Road Freight Industry Chris Althaus CEO Australian Trucking Association

2. Click to edit Master title style Click to edit Master text styles Second level Third level Fourth level Fifth level Land Freight Transport Sector Around 3.4% GDP in 2002/03 Freight task increases at 1.2 – 1.3 times GDP growth Road freight task set to double - by 2020 ( 1549 to 3000 million tonnes)

3. Click to edit Master title style Click to edit Master text styles Second level Third level Fourth level Fifth level Road Freight vs GDP 0 50 100 150 200 250 19701975198019851990199520002005201020152020 Index 2000 = 100 GDP Road Freight ActualProjected Research and analysis in the Commonwealth Department of Transport and Regional Services

4. Click to edit Master title style Click to edit Master text styles Second level Third level Fourth level Fifth level National non-bulk loads 0 50 100 150 200 250 300 350 19701975198019851990199520002005201020152020 billion tonne-kms Air Sea Rail Road ActualProjected Research and analysis in the Commonwealth Department of Transport and Regional Services

5. Click to edit Master title style Click to edit Master text styles Second level Third level Fourth level Fifth level Key Drivers for the Future Road infrastructure investment Balanced regulatory reform Key Business trends Intermodal relationships Labour supply

6. Click to edit Master title style Click to edit Master text styles Second level Third level Fourth level Fifth level Australia has 810,052 km of roads and 44,262 of rail track..thus (often)…road is the only option Australia’s truck fleet travels around 12,505 million km and transports some 1549 million tonnes of freight per year Road transport sector accounts for 75-80% of land freight “Trucking carries the Australian economy” Road Infrastructure

7. Click to edit Master title style Click to edit Master text styles Second level Third level Fourth level Fifth level Road Infrastructure ATA supports an integrated national transport plan incorporating freight transport corridors for both road and rail ATA welcomed AusLink with its increase in funding for a comprehensive land transport plan Focus on a national network of road freight corridors must be a priority that will add to the efficiency of freight transport in the future

8. Click to edit Master title style Click to edit Master text styles Second level Third level Fourth level Fifth level Road Infrastructure ATA’s major concerns are Australian Government now not fully funding national highways The need for increased investment in roads to fast track key corridor projects Unacceptable timeline for duplication of Hume Highway not until 2012 or Pacific Highway only by 2016

9. Click to edit Master title style Click to edit Master text styles Second level Third level Fourth level Fifth level Road Infrastructure AusLink targets state and private finance mix Private funding of non-toll road projects is limited - leaving this key responsibility with governments Overhaul of infrastructure funding is central to domestic economic growth and international competitiveness

10. Click to edit Master title style Click to edit Master text styles Second level Third level Fourth level Fifth level Regulatory Reform - Balancing Safety/Environment/Productivity Trucking is a heavily regulated industry: - Driving hours - Compliance & Enforcement - Engine & fuel standards - Vehicle dimensions - Payload mass

11. Click to edit Master title style Click to edit Master text styles Second level Third level Fourth level Fifth level Regulatory Reform - Balancing Safety/Environment/Productivity However, governments must provide regulatory settings that allow industry to remain efficient Transport efficiency supports economic performance / growth Loss of balance in regulation typically undermines efficiency Regulation must keep up with technology eg Mass Limits

12. Click to edit Master title style Click to edit Master text styles Second level Third level Fourth level Fifth level Safety Performance Whilst our industry is perceived by some as big, fast & dangerous, little interest shown in facts. Graph shows a significant reduction in fatalities involving heavy vehicles over past 15 years

13. Click to edit Master title style Click to edit Master text styles Second level Third level Fourth level Fifth level Equivalency of Standards ADR 70 Euro 1 ADR 70 EPA ‘91 ADR 80/00 EPA ‘00 ADR 80/00 Euro 3 ADR 80/01 EPA ‘04 ADR 80/01 E-4 Euro 5Jap 2005 LT EPA 2007iEPA 2010 Transient test levels

14. Click to edit Master title style Click to edit Master text styles Second level Third level Fourth level Fifth level Key Business Trends Rising fuel costs Industry structure changes Role of technology Customer needs - Just in Time Compliance & Enforcement - accountability Taxes and charges

15. Click to edit Master title style Click to edit Master text styles Second level Third level Fourth level Fifth level Intermodal Relationships Links between trucks, trains, ports and airports must improve Specialisation will increase given demand for efficiency gains Viable efficiency gains will depend on infrastructure/regulatory mix Governments must play role to ensure balance

16. Click to edit Master title style Click to edit Master text styles Second level Third level Fourth level Fifth level Labour Supply Focus on recruitment and retention Enhance the image and profile of the transport industry for attractive job opportunities and career paths. Develop and support an effective training culture within the industry. Review and improve existing training structures to promote easier access to the industry.

17. Click to edit Master title style Click to edit Master text styles Second level Third level Fourth level Fifth level Taxes and Charges Trucking operators pay a current road user charge of 20c per litre (part of diesel excise) Operators also pay registration charges based on vehicle Gross Vehicle Mass BTRE showed that in 1998, heavy vehicles paid $1393 million & costs attributable were $1280 million ie 110% over recovery Heavy vehicle charges are currently being reviewed by the NTC

18. Click to edit Master title style Click to edit Master text styles Second level Third level Fourth level Fifth levelConclusion ATA wants a productive and safe road network Road transport efficiency and road safety for all users depends on standard of road network and progressive regulation Given Australia’s demand for freight movement our road network needs increased investment Progressive and flexible regulation must go hand in hand with better roads

19. Click to edit Master title style Click to edit Master text styles Second level Third level Fourth level Fifth level “To unite and represent a professional and safe Australian Trucking Industry” Thank You Australian Trucking Association