Future Freight in Queensland from a Global Supply Chain Coordination Across Supply Chains
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A F O C U S O N F U T U R E FREIGHT IN QUEENSLAND FROM A GLOBAL SUPPLY CHAIN PERSPECTIVE An examination of global supply chain trends, policy imperatives and freight infrastructure March 2015 COPYRIGHT This work is copyright. Apart from any use permitted under the Copyright Act 1968, no part may be produced without prior permission. Requests and inquiries concerning reproduction and rights should be directed to: The Chief Executive Officer Queensland Transport and Logistics Council PO Box 16091, CITY EAST QLD 4002 REPORT PREPARATION This report has been prepared by EsSCO PTY LTD with edit and design by pH creative. TEL: 0438 153 109 DISCLAIMER While every effort has been made to ensure the accuracy of the analyses, the nature of certain input data and parameters used in the preparation of this reports means that neither EsSCO or QTLC are able to make any warranties in relation to the information contained herein. EsSCO and the QTLC disclaims liability for any loss or damage that may arise as a consequence of any person relying on the information contained in this document. CONTENT About the Queensland Transport and Logistics Council (QTLC) 6 Glossary 7 1 Executive Summary 8 2 Background 10 2.1 Context 10 2.2 Supply chain management 12 2.3 Policy framework 12 2.4 Freight infrastructure plans 13 2.5 Infrastructure commitments 13 3 Scope and objectives 14 3.1 Overall project objectives 14 3.2 Project scope 14 3.3 Specific objective - focus on freight 14 4 Methodology 15 5 Queensland’s Supply Chains 17 5.1 Supply Chain Perspectives 17 5.2 Global supply chain Drivers 19 5.3 Domestic supply chain drivers 21 5.4 Policy influence on supply chains 24 TABLES & FIGURES 5.5 Changes in value chains driven by global supply chain trends 25 Table 1: Summary detail - Supply Chain Perspectives 17 5.6 Productive freight infrastructure 27 Figure 1: 6 Conclusions 31 Modal share of domestic freight task 21 APPENDIX A 33 Table 2: QTRIP Investment Program 2014/15 27 APPENDIX B 40 Figure 2: Modal share of domestic freight task 36 A FOCUS ON FREIGHT ON QUEENSLAND’S INLAND HIGHWAY Foreword As Queensland’s peak freight transport and logistics Reports Two and Three of the ‘A Focus on Freight’ series advisory body to government, the Queensland Transport consider strategies for optimising freight infrastructure and Logistics Council (QTLC) is committed to representing critical to supporting high value supply chains in industry to influence policy, regulation, infrastructure Queensland, namely the proposed Toowoomba Second planning and investment to achieve sustainable and Range Crossing and Queensland’s Inland Highway. productive supply chains. In the current fiscally constrained environment, it is Central to this remit, the QTLC seeks to adopt a proactive imperative that investment in freight infrastructure approach in contributing to the freight agenda within supports ongoing efficiency and productivity improvements Queensland, through the development and progression in Queensland’s strategically important and high economic of various working papers and reports that will document value supply chains. the freight and logistics issues for both industry and government. Improved global competitiveness through efficient freight transport delivers economic benefit to the whole of In line with this objective, the QTLC has developed a series Queensland. As such, this report recommends a more of reports focusing on Queensland supply chains. detailed and ongoing analysis of the characteristics and trends for each of the sectors considered by the Supply As Queensland seeks to increase its economic Chain Perspectives and that this information be used to competitiveness in the global marketplace, it is critical that help plan and prioritise freight infrastructure development. the productivity of our supply chains are optimised through the ongoing development of an efficient and resilient freight system. To better understand supply chains in Queensland, the drivers of change, and the policy and infrastructure requirements to support future growth, the QTLC has undertaken an analysis of the global supply chain characteristics and policy imperatives driving economic development and growth and how these relate to proposed and existing infrastructure. The first in a series of three reports, this report examines Queensland’s major supply chains, identifying the drivers for change in supply chains from both a global and national perspective. Supporting this analysis is the development of a series of 11 Supply Chain Perspectives which define the specific characteristics of these sectors. Furthermore, this report provides the basis for better understanding the policy and freight infrastructure imperatives required to meet expected supply chain demands both now and into the future. About the Queensland Transport and Logistics Council (QTLC) The Queensland Transport and Logistics Council (QTLC) is a cooperative industry and government advisory body that provides advice to industry stakeholders and state and federal governments on the development, planning, regulation and operation of freight and logistics transport, infrastructure and services in Queensland. The QTLC is jointly funded by the Queensland Department of Transport and Main Roads (TMR) and the Australian Government’s Department of Infrastructure and Regional Development (DIRD). As the peak industry body representing the views of the freight transport and logistics industry, the QTLC advocates for the provision of infrastructure, regulation and policy that will support sustainable freight transport and logistics in Queensland. The QTLC supports the efficient movement of freight in order to support sustainable and productive economic development and prosperity by pursuing: • appropriate and ongoing investment in supply chain infrastructure • integrated regional and urban planning frameworks that secure land for current and future freight corridors • an access policy and regulation environment that facilitates productivity and innovation • efficient integration and linkage of freight and logistics systems across the whole supply chain. The QTLC works towards operational and strategic solutions to impediments and issues within the freight supply chain with both long term and immediate benefits for industry. More information on the QTLC and its activities can be found at www.qtlc.com.au or email [email protected] 6 A FOCUS ON FREIGHT ON QUEENSLAND’S INLAND HIGHWAY Glossary 3PL Third Party Logistics QTRIP Queensland Transport and Roads Investment Program AusRAP Australian road assessment program SCM Supply chain management CBD Central business district SCOTI Standing Council on Transport and CEO Chief Executive Officer Infrastructure CoR Chain of responsibility SEQ South East Queensland CSG Coal seam gas SWA Safe Work Australia CQTSCS Central Queensland Transport TCDP Transport Coordination and Delivery Supply Chain Strategy Plan DIT Department of Infrastructure and TEU Twenty foot equivalent unit Transport TMR Queensland Department of FMCG Fast-moving consumer goods Transport and Main Roads GDP Gross domestic product TSRC Toowoomba Second Range Crossing HML Higher mass limits WHUS Warrego Highway Upgrade Strategy HPV High productivity vehicle HVAP Heavy Vehicle Action Plan HVNL Heavy Vehicle National Law HVS&PP Heavy Vehicle Safety and Productivity Program IAP Intelligent Access Program KPI Key performance indicator LNG Liquefied natural gas Mt Million tonnes (mega-tonne) Mtk Million tonne kilometers NHVR National Heavy Vehicle Regulator NLFS National Land Freight Strategy NT Northern Territory OSOM Over-size over-mass PBS Performance-based standards PoB Port of Brisbane PPP Public/private partnership QTLC Queensland Transport and Logistics Council 7 This Future Freight in Queensland from a Global Supply 1 Executive Summary Chain Perspective document has the following objectives, to: As Queensland seeks to increase economic competitiveness in the global marketplace, it is • define the characteristics of the major Queensland critical we have a freight system that supports supply chains in terms of freight movements and resilient, effective and efficient supply chains, movement patterns, both current state and potential future state scenario/s. and which can meet the current and future demands. • identify the drivers of change in our supply chains, from both a global and national perspective To that end, the QTLC has undertaken an analysis of the • identify and examine current constraints, in terms global supply chain characteristics and policy imperatives of both infrastructure and the policy/governance driving economic development and growth, to understand framework. how these relate to proposed and existing infrastructure. Supply chain management is the integration of key In summary, QTLC’s objective is to: business processes across the supply chain for the purpose of creating value for customers and stakeholders1. Better understand supply chains in Queensland, the drivers of change, and the policy and Prior to the emergence of supply chain management, infrastructure requirements to support future companies within a network focussed on only the inputs and outputs of the processes, and operations were limited growth. to the organisation’s boundaries. Globalisation, a feature of the 1980s, required international systems and the This analysis from the project is presented in three reports, expansion of supply chains over national boundaries. This focusing on: provided the basis for the introduction of supply chain