Improving Supply Chain Efficiency in the Freight Transport and - PowerPoint PPT Presentation

Improving Supply Chain Efficiency in the Freight Transport and Logistics Industry Michael Kilgariff, Managing Director, Australian Logistics Council Australian Airports Association National Convention 13 November 2012

ASIAN WHITE PAPER • Australia’s large and rising freight task includes significant growth in the air freight sector. • Asian White Paper stated air freight volumes are expected to double by 2025. • Appropriate infrastructure – including airports - is essential to enabling cross-border trade and travel.

A RISING NATIONAL FREIGHT TASK • International freight tonnage went from 700,000 tonnes (2008-09) to more than 820,000 tonnes (201-11) – an increase of 14 per cent . • More than 650,000 tonnes of cargo pass through Sydney Airport each year • By 2035, the airport will be dealing with more than 1.5 million tonnes of cargo each year.

FREIGHT MUST BE CONSIDERED ‘CORE BUSINESS’ • Freight is already considered core business for airlines, and so it should be for airports. • Air freight facilities are the lynchpin between passenger and freight aircraft and road efficiency. • Get the air freight facility and supporting infrastructure right. • All airports are critical links in the supply chain.

ISSUES OF CONCERN TO THE INDUSTRY • Transparency surrounding the imposition of fees and charges on freight operators at some airports. • Businesses that support and provide vital aeronautical services at airports should be acknowledged as the primary users of the facilities. • Objections to the “take it or leave it” approach by some airport operators. • The ‘disconnect’ between airport planning and the needs of domestic and international freight services.

ISSUES OF CONCERN TO THE INDUSTRY • Airports do not necessarily understand freight operators’ needs and vice versa. There needs to be: – Greater appreciation of the number and frequency of vehicles needing airport access to support the domestic freight effort. – Greater appreciation from airports about the key differences between domestic and international air freight environments. – Less ‘shuffling’ of freight providers to extreme ends of the airports. • Northern Lands example.

FIXING THE DISCONNECT • The path to achieving a more sensible outcome is through better long term planning. • Amend the Airports Act 1996 so that airport master plans provide specific details on plans to move freight long term. • Consultation with industry must take place before the plan is made.

THE QUESTION OF CONGESTION • Congestion affects all aviation stakeholders. • Bottlenecks around all airports require greater government focus. • Improvement is evident, for example Melbourne’s planned East West Link and Sydney’s proposed WestConnex project. • However, more can be done…

A SECOND SYDNEY AIRPORT • There is a clear need for a second airport in Sydney. • The Joint Study on Aviation Capacity found: ‘ Demand for freight services cannot be met at Sydney Airport if additional capacity could not be added by 2035.’ • ALC believes a second Sydney Airport would: 1) Reduce congestion at, and the corridors linking to, Sydney Airport; and 2) Add price competition to the Sydney Air Freight market. • Tralee decision reinforces need to move on a second airport.

IN CONCLUSION • Improving productivity and efficiency must be at the heart of decision making when it comes to freight. • Freight must be considered core business for airports. • It needs to be front of mind when it comes to government policy making. • And part of long term planning of our cities, our transport links and our broader logistics infrastructure. THANK YOU & QUESTIONS