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The Economics of Road Transport of Beef Cattle

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The Economics of Road Transport of Beef Cattle THE ECONOMICS OF ROAD TRANSPORT OF BEEF CATTLE NORTHERN TERRITORY AND QUEENSLAND CHANNEL COUNTRY BUREAU OF AGRICULTURAL ECONOMICS \CANBERRA! AUSTRALIA C71 A.R.A.PURA SEA S5 CORAL SEA NORTHERN TER,RITOR 441I AND 'go \ COUNTRY DARWIN CHANNEL Area. ! Arnhem Land k OF 124,000 S9.mla Aborig R e ), QUEENSLAND DARWIN 1......../L5 GULF OF (\11 SHOWING CARPENTARIA NUMBERS —Zr 1, AREAS AND CATTLE I A N ---- ) TAKEN AT 30-6-59 IN N:C.AND d.1 31-3-59 IN aLD GULF' &Lam rol VI LO Numbers 193,000 \ )14 LEGEND Ar DISTRIT 91, 200 Sy. mls. ••• The/ Elarkl .'-lc • 'Tx/at:viand ER Area , 94 000'S‘frn Counb-v •• •1 411111' == = == Channal Cattle Numbers •BARKLY• = Fatizning Araas 344,0W •• 4* • # DISTRICT • Tannin! r Desert TABLELANDS, 9.4• • 41" amoowea,1 •• • • Area, :NV44. 211,800Sq./nil -N 4 ••• •Cloncurry ALICE NXil% SOCITIf PACIFIC DISTRI W )• 9uches `N\ OCEAN Cattle \ •Dajarra, -r Number 28,000 •Winbon 4%,,\\ SPRINGS A rn/'27:7 0 liazdonnell Ji Ranges *Alice Springs Longreach Simpson DISTRICT LCaWe Desert Numbers v 27.1000 ITh Musgra Ranges. T ullpq -_,OUNTRY JEJe NuTber4L. S A 42Anc SAE al- (gCDET:DWaD [2 ©MU OniVITELE2 NORTHERN TERRITORY AND QUEENSLAND CHANNEL COUNTRY 1959 BUREAU OF AGRICULTURAL ECONOMICS CANBERRA AUSTRALIA 4. REGISTERED AT THE G.P.O. SYDNEY FOR TRANSMISSION BY POST AS A BOOK PREFACE. The Bureau of Agricultural Economics has undertaken an investigation of the economics of road transport of beef cattle in the remote parts of Australia inadequately served by railways. The survey commenced in 1958 when investigations were carried out in the pastoral areas of Western Australia and a report entitled "The Economics of Road Transport of Beef Cattle - Western Australian Pastoral Areas" was subsequently issued. This report, the second in the series, concerns investigations recently completed in the Northern Territory and Channel Country of Queensland. These economic enquiries have been undertaken as part of the Bureau's normal programme of research into the problems of the beef cattle industry. It is recognized that effective internal transport is an important factor in beef cattle production: the use of motor transport can lead to an avoidance of the weight losses and deaths which often occur when cattle are walked to railheads or killing centres, especially when stock route conditions are adverse. Younger chiller-type animals may be turned off, and younger store cattle moved to fattening areas elsewhere. In time of drought, when stock routes are closed, herds may be moved to agistment in other districts. The enquiries preceding this report were carried out during the period June to September, 1959. The Bureau is indebted to the Northern Territory Pastoral Lessees' Association and the Centralian Pastoralists' Association for their co-operation, and to the pastoralists interviewed, for their advice, assistance and hospitality. Considerable information and assistance were most generously given by the road hauliers, stock and station agents, pastoral companies, and Commonwealth and State authorities. The Commonwealth Department of Territories gave valuable help particularly in connection with the planning of the survey, while the co-operation and assistance received from officers of the Northern Territory Admin- istration Division, especially the Animal Industry Branch, did much to ensure the success of the investiga- tions in the Territory. Thanks are due to the Commonwealth Department of Shipping and Transport; and also to the Queensland Department of Agriculture and Stock not only for the information which was freely supplied but also for its practical advice and assistance. Field investigations were in charge of Mr. W.T. Allen who also prepared the report, assisted by Messrs. J. Van Holst Pellekaan and W. Bodle. A.C.B. MAIDEN Director Bureau of Agricultural Economics Canberra, A.C.T. May, 1960 TABLE OF CONTENTS. SUMMARY ••• ••• ••• ••• ••• 1 INTRODUCTION ••• ••• ••• ••• ••• 5 PART I: THE DISTRIBUTION AND MOVEMENT OF CATTLE ... .•• 6 Distribution ... ••• ••• ••• ••• 6 Northern Territory ••• ••• ••• ••• 6 Channel Country: Queensland ••• ••• ••• 6 Effect of Quarantine Regulations ••• ••• ••• 9 Restrictions on the Movement of Cattle from Pleuro-Infected Areas 9 Tick Control ••• ••• ••• ••• 10 Movements ... ••• ••• .•• ••• 10 Darwin and Gulf District ••• .•• ••• 11. Victoria River District ... ••• .•• ••• 13 The Alice Springs District ••• ••• ••• 14 The Barkly Tableland District ••• .•• ••• 16 Channel Country of Queensland ••• ••• ••• 17 PART II: THE COST OF ROAD TRANSPORT ••• ••• ••• 21 Treatment of Costs ••• ••• ••• ••• 21 Cost Analysis ••• ••• ••• ••• 24 Comparison of the Average Operational Costs ••• ••• 28 Effect of Mileage ••• ••• .•• ••• 30 Capital Investment ••• ••• ••• ••• 33 Effect of Bitumen Roads ••• ••• .•• ••• 34 Backloading ... ••• ... ••• ••• 35 Effect of Sales Tax and Tax on Diesel Fuel ••• ••• 35 PART III: THE SUITABILITY OF VEHICLES ••• ••• ••• 37 Type of Vehicle Required ... ••• ••• ••• 37 Practical Limitations on Size ••• ••• ••• 37 Traffic Regulations and Vehicle Size ••• ••• ••• 38 Suggested Modifications ••• ••• ••• ••• 39 Conclusion ... ••• ••• ••• ••• 40 PART IV: THE SUITABILITY OF ROADS ••• .•• ••• 41 Northern Territory ••• ••• ••• ••• 41 Alice Springs District ... ••• ••• ••• 41 Top End and Victoria River District ••• ••• ••• 45 Barkly Tableland District ••• ••• ••• 48 Channel Country of Queensland ••• ••• ••• 50 Conclusion ... ••• ••• ••• ••• 58 PART V: THE DEVELOPMENT OF ROAD TRANSPORT ••• ••• 60 Factors Favouring the Development of Road Transport ••• 61 Problems Associated with the Use of Road Transport ••• 64 Objections Raised by Pastoralists to the Use of Road Transport ••• 614 Organizational Problems ••• ••• ••• 66 Limitations of Road Transport ••• ••• ••• 67 PART VI: SCOPE FOR THE INCREASED USE OF ROAD TRANSPORT ••• 69 Wider Acceptance of Road Transport ... ••• ••• 69 Increased Turn-off ••• ••• ••• ••• 70 Integration of Breeding and Fattening Areas ••• ••• 71 Road Development ••• ••• ••• ••• 72 Effect of Marketing Younger Stock ••• ••• ••• 72 Market Requirements ••• ••• ••• ••• 73 APPENDIX A ••• ••• ••• ••• ••• 75 APPENDIX B ••• ••• ••• ••• ••• 83 TABLES. Page 1. Distribution of Cattle: Northern Territory ••• ••• 6 2. Distribution of Cattle: Channel Country: Queensland... ••• 9 3. Cattle Movements from the Northern Territory ••• ••• 10 4. Number of Cattle Road Transported Compared with Total Turn-off 11 • 5. Number of Stock Railed from Major Channel Country Railheads ••• 18 6. Size and Capacity of Road Trains ••• ••• ••• 20 7. Cost of Transporting Cattle by Road Train - Large Diesels (Average of 6 Road Trains) ••• ••• ••• 25 8. Cost of Transporting Cattle by Road Train - Large Diesels (Average of 4 Road Trains) .•• ••• ••• 26 9. Cost of Transporting Cattle by Road Train - Medium Diesels (Average of 5 Road Trains) ••• ••• ••• 27 10. Cost of Transporting Cattle by Road Train - Petrol Vehicles (Average of 8 Road Trains) ••• ••• ••• 29 11. Cost Model for a Road Train Powered by a 170 B.H.P. Prime Mover 31 12. Comparison of Operational Costs ••• ••. ••• 32 13. Capital Investment in Rolling Stock and Depot Equipment ••• 33 14. Effect of Sales Tax on Replacement Cost of a Model Road Train ••• 35 15. Effect of Sales Tax and Fuel Tax on Operating Costs ... 36 16. Limitations on the Size of Vehicles - Northern Territory and Queensland ••• ••• ••• ••• 38 17. Probability of Receiving Specified Amounts of Rain - Alice Springs District .•• ••• ••• ••• 43 18. Probability of Receiving Specified Amounts of Rain - Victoria River Downs and Katherine ••• ••• ••• 46 19. Probability of Receiving Specified Amounts of Rain - Brunette Downs ... ••• ••. ••• ••• 48 20. Probability of Receiving Specified Amounts of Rain - Monkira ••• 53 21. Comparison of Droving and Road Transport Costs ••• ••• 65 22. Distances at which Road Transport Becomes Uneconomic ••• 68 23. Cattle Numbers in the Northern Territory by Districts ••• 70 24. Herd Composition Turning Off Cattle at Different Ages. ••• 73 LIST OF ILLUSTRATIONS. Page GRAPHS. 1. Trends in Cattle Numbers 1937-59 - Northern Territory by Districts ••• ••• ••• 7 2. Trends in Cattle Numbers 1945-59 - Queensland Channel Country ••• ••• ••• 8 MAPS. Frontispiece: Northern Territory and Channel Country of Queensland Showing Areas and Cattle Numbers ••• ••• Frontispiece 1. Northern Territory and Queensland Channel Country Survey Location ••• ••• ••• ••• Facing page 5 2. Northern Territory and Queensland Channel Country Cattle Turn-off and Number Exported Through Major page 10 Outlets 1958-59 ••• ••• ••• ••• Facing 42 3. Northern Territory Road System ••• ••• ••• 4. Queensland Channel'Country Road System ••• ••• 51 PHOTOGRAPHS. Plates 1 - 8 85 t• SUMMARY. PART I: THE DISTRIBUTION AND MOVEMENTS OF CATTLE. 1. The Alice Springs District accounts for 24% of the cattle in the Northern Territory, the Barkly Tableland District 29%, the Victoria River District 30% and the Darwin and Gulf District 17%. 2. Figures available suggest that cattle numbers in the Northern Territory have increased by 28% since 1937. The Alice Springs District showed a fourfold increase while in the Barkly Tableland District an increase of 20% occurred. In the Darwin and Gulf District and the Victoria River District numbers have until recently shown a downward trend. 3. In the Queensland Channel Country cattle numbers have increased by 24% since 1945. 4. Quarantine regulations applying to the Northern Territory prohibit the movement of cattle from pleuro-pneumonia affected areas to the southern states except by road
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