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 National Wealth 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 & 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 = 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