Government unveils Victorian Freight Plan

Friday, July 20, 2018

"Delivering the Goods"

Today the Victorian Government launched the Victorian Freight Plan- "Delivering the Goods: Creating Victorian Jobs".
 
To view the Victorian Freight Plan please click HERE.
 
Freight & Trade Alliance (FTA) and the Australian Peak Shippers Association (APSA) acknowledge that a number of priorities outlined in the Plan have followed our recommendations and accurately reflect the needs of industry.
 
These include comments to:
 
·       Develop new road and rail access to Webb Dock;
·       Monitor (along with ACCC) competition, pricing and the performance of import and export container movements and identify and implement improvements in container supply chain;
·       Develop the former Melbourne Market site for use for truck marshalling associated with the Port of Melbourne (a position recommended by the Container Transport Alliance of Australia);
·       Investigate how to structure future toll regime contracts to optimise efficient freight movements and minimise congestion, and implement outcomes in future toll road contracts (a major advocacy position driven by Bega and other APSA members);
·       Work in partnership with the Port of Melbourne to ensure that the port is able to achieve its optimum capacity.
 
We now hope that these priorities will be translated into real budget commitments. 

Infrastructure charges
 
While there are many positive outcomes proposed in the Plan, much of the detail is not provided. 

While we acknowledge the reference to infrastructure charges and port supply chain costs, there is no proposed solution or roadmap as to how improvements can be achieved. FTA/APSA is of the view that the only way that a necessary outcome can be achieved in this instance is via Government intervention and regulation. In the meantime, major media outlets continue to report that the Port of Melbourne is now amongst the most expensive in the world.
 
Similarly, while the Plan acknowledges the need to monitor stevedore and landside performance, there is no detail as to how this will be achieved or what approach will be taken. Meanwhile, NSW enjoys the benefits of a much more sophisticated regulatory environment with the Port Botany Landside Improvement Strategy (PBLIS).
 
Bigger Ships at Swanson Dock
 
The ability of Swanson Dock to accommodate bigger ships in the short-term remains one of the most significant concerns of Victorian importers and exporters, with ANL and other major shipping lines indicating a desire to bring 8,000+ TEU vessels into Melbourne.

Victoria International Container Terminal (VICT) at Webb Dock remains the only terminal that can host larger vessels. 

Alternatives, such as land bridging from Sydney, have been proposed to shippers by some major shipping lines and logistics service providers.
 
While the report mentions "Plan for bigger vehicles and vessels", it doesn't include any corresponding short-term actions to address the issues at Swanson Dock.
 
Further consultation 
 
As we have said many times, freight and supply chain policy should not be led by infrastructure owners or infrastructure interests. Freight policy needs to be developed with the needs of cargo owners (importers & exporters) and port users (freight forwarders and transport operators) at its heart.
 
We look forward to working with the Government to translate these commitments into positive actions and real operational outcomes.
 
 
 
Travis Brooks-Garrett- FTA/APS