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DCN April 2019 Edition

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WORD FROM THE MINISTER<br />

Helping future freight<br />

pull greater weight<br />

The data is in the details for the future of Australia’s freight task, which is growing<br />

at break-neck speed, writes Deputy Prime Minister Michael McCormack<br />

WHETHER YOU LIVE IN THE CITY<br />

or the country, in a house, a high-rise or a<br />

farm, freight supply chains affect us all.<br />

When freight moves efficiently, we are<br />

all winners. Fresh produce and other goods<br />

are delivered quickly and safely, businesses<br />

can operate and freight vehicles move<br />

smoothly in and out of town. When our<br />

supply chains are interrupted all of this is<br />

at risk of falling apart.<br />

THE FREIGHT IMPULSION<br />

The need for an efficient and productive<br />

freight transport system to keep<br />

our economy moving cannot be<br />

overemphasised. The nation’s population<br />

is growing and the demand for freight is<br />

growing even faster.<br />

As cities grow, some freight corridors<br />

and logistics facilities will pose planning<br />

challenges unless we act now. It is<br />

reasonable to expect governments at all<br />

levels to be able to plan ahead to ensure we<br />

can meet the need for both efficient freight<br />

and liveable, residential communities. Data<br />

plays a key role in this planning.<br />

The Liberal and Nationals government<br />

recognises the importance of ensuring the<br />

freight sector is efficient and productive in<br />

keeping Australia moving. That is why we<br />

have been developing a National Freight<br />

and Supply Chain Strategy with state,<br />

territory and local governments, as well as<br />

industry. The strategy will set an agenda for<br />

collaborative and integrated government<br />

action on freight and supply chains during<br />

the next 20 years.<br />

THE DRIVE FOR DATA<br />

As part of the 2018 industry expert<br />

panel-led Inquiry into National Freight<br />

and Supply Chain Priorities, a scenario<br />

planning project was undertaken to help<br />

future proof the strategy. This project<br />

involved developing four potential future<br />

scenarios, designed around different<br />

levels of progress of automation, among<br />

various other factors, to assist in long term<br />

planning for our freight sector.<br />

Across all scenarios, it became clear<br />

improved data sharing and use is needed if<br />

we are to better plan for future disruptions<br />

and maintain the performance and<br />

competitiveness of supply chains.<br />

NEXT STEPS<br />

Following the inquiry, the Australian<br />

government commissioned iMove<br />

Cooperative Research Centre to do a<br />

research study of the freight sector’s data<br />

requirements to improve decision-making<br />

and performance. The study found five key<br />

barriers facing the freight sector which<br />

prevent better sharing of data.<br />

These barriers were: inadequate<br />

protection of competition and confidential<br />

data; excessive legal and contractual<br />

requirements; resource-intensiveness in<br />

terms of costs, time and human resources;<br />

institutional weakness, in particular a lack<br />

of governance around data; and a lack of<br />

co-ordination and compatibility when it<br />

comes to types of data.<br />

In short, we need to enable the freight<br />

sector to cut through the red tape and<br />

technical discrepancies surrounding data.<br />

The freight sector should be able to use<br />

data, communicate and share data, and<br />

protect the data which actually needs<br />

protecting.<br />

While the final version of the iMove<br />

study has yet to be released, initial findings<br />

suggest the government should develop a<br />

national policy on freight data in Australia<br />

– a project which is already underway –<br />

and establish a national data office as a<br />

trusted central co-ordination point for<br />

hosting freight data. Conclusive findings<br />

and recommendations of this study have<br />

yet to be released.<br />

THE GOVERNMENT’S TASK<br />

The government’s role in developing the<br />

National Freight and Supply Chain Strategy<br />

Michael McCormack, Deputy Prime Minister<br />

and minister for infrastructure and transport<br />

for Australia – combined with increased<br />

accessibility and efficient management of<br />

freight data – is positioning the freight<br />

sector to meet significant future growth<br />

in the freight task. Our freight sector, its<br />

workers and customers, will be supported<br />

to meet increased overseas demand<br />

for Australian resources and produce,<br />

especially in growing Asian markets.<br />

We will also be able to better<br />

support increased domestic demand<br />

from Australia’s growing population<br />

through a unified, national approach to<br />

freight planning. A national approach is<br />

essential to ensure freight systems and<br />

infrastructure work across state and<br />

territory borders to enable the efficient<br />

delivery of goods across Australia.<br />

Our government understands this and is<br />

investing in this national, evidence-based<br />

approach right now.<br />

I look forward to ongoing industry<br />

engagement as we work with all involved in<br />

the freight supply chain sector. There will<br />

be great weight to pull in the future, but<br />

the rewards will be even greater.<br />

8 <strong>April</strong> <strong>2019</strong><br />

thedcn.com.au

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