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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
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