Tuesday 22 October 2013

CEDA Luncheon – Transport - Integrating the bigger picture Michael Kilgariff, Managing Director, Australian Logistics Council Time to Deliver’ on logistics infrastructure and reform to prepare for future freight growth in our cities

Topics for today

Recycling of Infrastructure Assets Victorian Freight and Logistics Plan Encouraging private sector investment in infrastructure

Recycling of Infrastructure Assets

• Infrastructure Australia report identifies many assets that can be transferred to the private sector

• Funds raised can go back into productive freight logistics infrastructure

• Used to great success in NSW with the long term lease of Port Botany & Port Kembla with more than $5 billion raised

Port of Melbourne

• ALC supports further government consideration of the long term lease of Port of Melbourne / Port of Hastings

• Funds raised can go towards the landside infrastructure requirements of the new Port of Hastings

• ALC welcomes recent comments by Treasurer O’Brien on the possible privatisation of the Port

Victorian Freight and Logistics Plan

• ALC welcomes renewed focus in the Plan on investment in freight logistics infrastructure

• Would like to see the plan as part of an integrated document with the Metropolitan Strategy to ensure greater consistency and integrated decision making across all parts of government

East West Link

• Cost of congestion to the Victorian economy is forecast to rise from $3 billion to more than $6 billion by 2020

• East-West Link will improve travel times across northern and eastern Melbourne

• ALC supports release of Cost Benefit Analysis details

Encouraging greater private sector investment in infrastructure

• Local infrastructure funds are keen to invest more in domestic infrastructure projects

• Inconsistent bidding processes act as an obstacle and add to cost and complexity

• ALC encourages governments to work together to reduce the red tape barriers getting in the way of potential private investors

Conclusion

• ALC estimates the freight logistics sector contributes about 14.5 per cent to the economy

• Critical governments invest in appropriate national infrastructure to boost productivity, efficiency and safety and to facilitate the smooth and efficient movement of freight.