1. The Economics of Road Freight 22 November Stuart St Clair Chief Executive Australian Trucking Association

2. Australian Trucking Association
Established in 1989
Peak representative body for trucking in Australia
A federation of state and sector associations and major logistics companies
All corporate members are multi-modal
Our mission:
“To unite and represent a professional and safe Australian trucking industry.”

3. Industry Creates National Wealth
An essential industry. We contribute to wealth & improve national standard of living
We represent around 3.4% of the GDP of Australia. Around $30 billion.
Over 180,000 employees in the hire and reward business of transport & over 49,000 trucking operators. More than 250,000 people engaged in supporting industries
Trucking industry of world standard

4. Trucking Pays Its Way Trucking more than pays its share in Australia
Trucking pays $1.8b for road use towards allocated construction and maintenance costs of just $1.62b
All Australian Transport Ministers, state and federal recently rejected National Transport Commission’s recommendations for net diesel excise and registration increases in 3rd Heavy Vehicle Charges Determination

5. Major Freight Task
Major challenge for the trucking Industry. Government forecasts Australia’s road freight task to more then double from 2000 to 2020 Source: BTRE Report 112, 2006
Doing nothing will lead to increased road/rail congestion
A major industry concern: safe and efficient infrastructure for road freight transport.

6. Road Freight Growth
Current estimates show only 9-15% of non bulk freight is contestable between road and rail
In Australia; about 810,000 kms of roads & about 44,000 kms of rail
ATA supports a competitive rail industry, assisted independently of road which pays its own way
We oppose increased taxes and charges on road freight operators to make rail more competitive

7. Council of Australian Governments (COAG)
COAG, agreed last February to:
Harmonise & reform rail and road regulation within five years
Strengthen and coordinate transport planning/project investment appraisal processes
Reduce current and projected urban transport congestion.

8. COAG
COAG initiated Productivity Commission Inquiry into Road and Rail Infrastructure Pricing
ATA’s Productivity Commission Submission:the further you drive, the more tax you pay, and the heavier the load the more tax you pay

9. Productivity Commission
Draft findings
The freight industry is big enough for everyone
Rail needs to carry its share of the freight task
Road transport is over-recovered

10. Productivity Gains
Productivity improved with B-doubles = 30-40% increase
Intermodal terminals important for logistics providers
Higher Mass Limits Network (HML)
In a country the length and breadth of Australia,
HML network is:
Essential for industry
Uniformity among states is crucial

11. Productivity Gains Need for productive vehicles;
B-Triples, quads axle groups

12. Conclusions Appreciate being invited today
Many common fronts where road and rail freight industries can relate.
There needs to be more opportunities to meet in a spirit of cooperation; relationships need to be fostered and grown

13. Australian Trucking Association
Thank you