Victorian Transport, Distribution

and Logistics Industry

Action Plan August 2002
Ministers Foreword 3
Executive Summary 4
1. Introduction 6
2. Current Competitive Position 8
3. Competitive Transformations 11
4. Components of the Industry Action Plan 15
5. Actions for Implementation over a Three-Year Period 25
1
Contents
2
3
Ministers Foreword
Victoria was founded on the effectiveness of the nineteenth century transport and
distribution industry. Today the Transport, Distribution and Logistics (TDL) sector
contributes over $11.5 billion per annum, or around 7% to Victorias GSP. This
strong base is the key to Victoria being able to capitalise on its location at the
centre of Australias economic triangle and its strategic position in relation to the
Asia-Pacific region.
The Bracks Government has a vision for Victoria as a world-class innovative
economy, a centre for industry excellence, providing highly skilled employment and
economic growth.
Part of this vision is for Melbourne to be the gateway of an integrated supply chain
that links together Victorias and Australias TDL sector with their partners and then
connects them to the world.
The Government considers the Victorian TDL industry as a key enabler for the
Victorian economy and centrally important for achieving substantial improvements
in productivity and growth within the economy.
In 2001 the Government commissioned the Strategic Audit of the TDL industry to
provide a snapshot of current issues that the Government could jointly address
with the industry.
The Audit made it clear that the TDL industry, as a service provider, is dependent
upon the requirements of other players in the supply chain. To significantly improve
its own performance the whole supply chain needs attention.
The Audits overall finding was that the industry, its clients and Government
working as partners along supply chains will achieve the greatest gains for the
industry.
Based on the Audit and extensive consultation, we have developed the Victorian
Transport, Distribution and Logistics Industry Action Plan August 2002 to
strengthen and accelerate the growth and transformation of this vital industry.
At the core of the Action Plan is a shared conviction, by both industry and
Government, that Victorias role as the State of supply chain excellence and
gateway of choice, should be maintained and enhanced.
The Action Plan outlines the Governments short and medium term strategic
approach to working with industry to pursue this vision and achieve long term
wealth creation and jobs growth.
I thank the Sector Reference Group and other industry members for their
assistance in developing this Plan.
John Brumby MP
Minister for State and Regional Development
Background
Importance of the Transport Distribution
and Logistics Industry
The Victorian Transport Distribution and Logistics
industry
1
provides a vital service enabling the
movement of freight throughout Victoria, Australia
and overseas. The Victorian TDL industry primarily
services the key economic triangle incorporating
Victoria, South Australia, Tasmania and southern New
South Wales, and also links this region with the rest
of Australia and the world.
The sector of the Victorian TDL industry providing
hire and reward, transport, distribution and logistics
services to industry employs over 100,000 people
representing some 4.5% of total employment in
Victoria. The compound annual employment growth
rate equated to 1.1% between 1996 and 2000.
About 40% of total TDL employment is generated in
road transport followed by the transport services
sector and the storage sector.
The hire and reward section of the TDL industry
generates in excess of $11.5 billion a year in
economic activity in Victoria and represents
approximately one quarter of the national TDL
industry.
However, if the scope of the industry is broadened to
include in-house transport, distribution and logistics
activities vital to almost every Victorian industry
sector, its employment and economic impact is
considerably greater.
TDL Industry Vision
The Victorian Government is committed to ensuring
that Victorias transport distribution and logistics
capability is worlds best.
The Government undertook an Audit of the
Transport, Distribution and Logistics industry in 2001
to provide a snapshot of current industry issues with
a view to considering ways of jointly addressing these
issues with industry.
A significant view emerging from that process was
that while the TDL industry is in a position to address
certain matters relating to its own business
efficiencies, as a service provider, it is dependent
upon the requirements of other players in the supply
chain. To significantly improve its own performance,
the whole of the supply chain needs attention.
The overall finding of the Audit was that Victorian TDL
strength is only as robust as its supply chains and
that working as partners along supply chains will
achieve the greatest gains for the industry and for
Victoria.
The Government and industry have recognised that
they must work together to realise a joint vision for
Victoria as the State of supply chain excellence and
gateway of choice. It is that view which is reflected in
the establishment of a Consultative Group at
Ministerial level to provide the focus for the industry
to address wider issues of supply chain management
of which they are an important part.
This Industry Action Plan highlights the strategic
initiatives required of the transport, distribution and
logistics industry in Victoria, by the Victorian
Government and by the industry and the Government
jointly, to pursue this vision. Many of the infrastructure
and land use issues raised within the TDL Audit as
worthy of State Government attention, are rightfully
the province of the Department of Infrastructure and
its Ministers, and these are referred for consideration
under the Victorian Freight & Logistics Strategy.
Strategic Initiatives
The strategic initiatives that are outlined in this Action
Plan are aligned with the priorities that were identified
in the Strategic Audit of the TDL industry and
reinforced by ongoing consultation with industry
members. They are consistent with and complement
Federal Government initiatives and, importantly,
recognise and draw on the strategic business
initiatives announced in April 2002 by the Victorian
Government in Building Tomorrows Businesses
Today.
4
Executive Summary
1 The term Transport in the TDL industry is used to cover freight transport but not passenger transport.
The initiatives outlined in the Action Plan and
summarised in table form from page 20 include:
1. Strengthening and complementing consultative
mechanisms through:
The establishment of the Victorian Supply Chain
Consultative Group (VSCCG) and the Industry
Round Table (IRT)
Supporting renewed Government commitment
to contributory funding of Sea and Airfreight
Councils.
2. Improving supply chain practices within Victorian
industry including:
Benchmarking Supply Chain Management
(SCM) performance of Victorian companies
Undertaking demonstration supply chain
collaboration projects
Development of an interactive online tool to give
companies a quick analysis of their supply chain
practices with respect to industry best practice
Delivering government business support
programs to TDL enterprises.
3. Increasing the uptake of information,
communication technology (ICT) and e-commerce
by the TDL industry through:
Supporting ICT demonstration projects
Helping to establish simple and accessible
training in ICT
Providing training in ICT to regional TDL
enterprises
Supporting the development of inter-operable
ICT systems.
4. Strengthening an education and training
framework in TDL by:
Reviewing industry training and skill formation,
and consultation and advisory mechanisms, to
assist in building bridges between industry and
education and training providers
Increasing opportunities for education and
training in logistics and supply chain
management in vocational and higher
educational institutions in metropolitan and
regional Victoria
Supporting the Federal Government Action
Agenda initiatives on logistics and supply chain
management education and training
Maximising opportunities for credit transfer and
articulation between vocational education and
training qualifications and higher education
courses in logistics and supply chain
management
Promoting lifelong learning and career pathways
in logistics and supply chain management.
5. Facilitating transport development and connectivity
by:
Establishing an assessment model for inter-
modal hub proposals
Establishing criteria for government support of
inter-modal hub proposals
Safeguarding resources required to develop
inter-modal hubs.
6. Marketing the Victorian TDL industry by:
Promoting Victorian TDL capability to targeted
national and international companies
Marketing industry careers to young people and
students.
7. Facilitating Victorian Government initiatives in TDL
by:
Supporting a whole-of-government freight and
logistics strategy, including a review of
infrastructure requirements
Linking Victorian initiatives into national agendas
such as those arising from the Australian
Logistics Council and the National Food
Council.
5
The TDL Industry Action Plan
Victorian Government
Policy Approach
The Victorian Government is committed to the long-
term future success of Victorian business and
industry as part of a framework for the development
of an innovation economy.
As part of the Victorian Governments Growing
Victoria Together vision, the TDL Industry Action Plan
seeks to promote opportunities to develop new ideas
through government/industry partnerships as well as
encouraging innovative practices that attract
sustainable investment and develop skilled
employment opportunities.
The TDL Industry Action Plan also advocates actions
that improve the competitiveness of the business
environment by developing strategies promoting
greater collaboration in the TDL sector and the
customers it serves.
An innovation economy is one in which businesses
keep an eye on the future and are able to identify
market opportunities and technological trends as well
as manage the process of change. This requires
investment in all types of productive capital
equipment and human capital, including skills and
knowledge.
Under this framework, the Victorian Government aims
to increase the number of new and sustainable
companies as well as supporting profitable and
internationally oriented companies that are investing
for the future.
As part of this process, the Government has
undertaken a series of Strategic Audits of Victorian
industry to provide the basis for ongoing economic
policy formulation through a detailed analysis of
Victorias competitive position, future opportunities for
growth and the actions required to capture growth.
The Government is building on the work undertaken
in the Strategic Audits by developing and
implementing a sectoral plan for each of these
industries.
This statement sets out the Governments short-to-
medium term strategic approach to working with the
transport, distribution and logistics industry to pursue
the vision for Victoria as the State of supply chain
excellence and gateway of choice. It focuses on TDL
issues where Government and industry can work
together to improve performance.
It should be seen in the context of a freight and
logistics strategy being developed by the Department
of Infrastucture, as a whole-of-government approach
to freight and logistics over the long-term. It covers
expected infrastructure needs, related planning and
logistics issues.
Development of the
Strategy Statement
The TDL Industry Action Plan has been developed
with the cooperation of, and in consultation with, the
TDL industry in Victoria. Continuing consultation has
been undertaken with the Sectoral Reference Group,
which was formed as part of the Strategic Audit of
the TDL Industry and continued during the
development of the Industry Action Plan.
The Sectoral Reference Group members include:
Australian Federation of International
Forwarders
Mr Steve Thorogood
Mr Len Elliss
Customs Brokers & Forwarders Council of
Australia
Mr David OHalloran
Freight Australia
Mr Mike Houston
6
1. Introduction
Logistics Association of Australia
Mr John Turner
Mr Steven Thacker
Mr Jim McGrath
Mr David Doherty
Melbourne Airport
Dr Warren Mundy
Melbourne Port Corporation
Mr Nick Easy
Mr John Riley
Tradegate ECA
Mr Barry Keogh
Ms Cathy Thawley
Transport Training Victoria
Mr Ian McMillan
Mr Ian Hundley
Maritime Union of Australia
Mr Mick Cottrell
Transport Workers Union
Mr Bill Noonan
Ms Maria Abate
Victorian Airfreight Council
Mr Richard Pierse
Mr John Goodwin
Victorian Sea Freight Industry Council
Mr Neil Chambers
Victorian Transport Association
Mr Phil Lovel
Mr Peter Knowles
Mr Mike Wood
Mr Brian Heskath
Department of Infrastructure
Ms Samantha Taylor
Mr John Bencic
Department of Innovation, Industry & Regional
Development
Mr Bruce Mapperson
Ms Carolyn Ingvarson
Mr John OCallaghan
Mr Ken Strahan
Many others have been involved in the discussions
and the Victorian Government thanks them for their
interest and contributions.
Definition of the TDL Industry
The TDL industry is responsible for the movement of
goods from the source of supply to the end
customers including handling, storage, transport and
related planning, coordination and information
exchange. This Industry Action Plan excludes all
aspects of passenger transport not directly related to
freight movement.
7
2.1 Background
The Victorian freight task in 1998 (the last period for
which reliable data exists) was some 426 million
tonnes (or 317 billion tonne-kilometres). Since 1989,
the task has been growing on average by 2.7% per
annum.
Melbourne metropolitan freight movements represent
some 70% of the Victorian freight task (in tonnes).
This is not surprising given that 73% of Victorias
population reside in Melbourne, and some 74% of
Victorias 72,000 manufacturing, wholesaling and
retail enterprises are located in Melbourne. The
annual transport costs alone for Melbournes
metropolitan freight task are in excess of $2 billion
per annum.
However, the Victorian rural and regional freight task
is no less important to the Victorian economy, and
the transport, distribution and logistics industry plays
a key role in linking regional and rural economic
development to metropolitan Melbourne.
When the Victorian freight task is viewed on the basis
of the distance travelled by the tonnes carried
(tonne/km), regional transport represents around 70%
of the task (with the metropolitan share being less
than 30%).
2
Growth in freight movements from rural
and regional areas (average annual growth of 4.2%
between 1989 and 2000) more than double that
generated by Melbourne (2%). Regional freight flows
are also forecast to continue to grow by around 3.6%
per year.
The Geelong, Wodonga, Ballarat, Bendigo, La Trobe
Valley, Mildura and Shepparton regions represent
most of the remaining states business enterprises
and are significant as freight origin and destination
areas.
The composition of freight carried reflects the
distribution of economic activities and population size
in each region.
Victoria produces a range of goods (such as milk and
cream, fruit and vegetables, live animals, grain, wool,
medical and pharmaceutical products, machinery and
petroleum products, and motor vehicles) that are
distributed to Melbourne and regional centres within
Victoria, interstate and overseas.
The Victorian freight task is dominated by road
transport, which carries almost 83% of Victorian
freight. Oil and gas pipelines transport 7.8%, followed
by shipping (7.4%), rail (1.9%) and air (0.2%). Most
freight (82%) moves less than 100 km from its base
or pick up point.
Rail carries mostly bulk grain, steel and containers.
Almost 54% of intrastate rail movements are
generated by grain, followed by intermodal traffic
(25%, mainly containerised exports) and bulk cargoes
(such as quarry, stone, fuel and timber).
Sea freight consists mostly of liquid bulk such as
crude petroleum, petroleum products and chemicals;
dry bulk including grains, alumina, cement and
fertilisers; break-bulk including steel and motor
vehicles and containerised freight. Trade through
Victorias ports is expected to grow from 34 million
tonnes per annum (mtpa) in 1996 to between 80
mtpa and 120 mtpa by 2030.
Victorias ports are key contributors to Victorias
economic welfare. The Port of Melbourne is Victorias
largest port handling about 60% by volume of
Victorias sea freight and is Australias premier
container port handling 37% of the nations container
trade. The Port of Melbourne handles some $60
billion worth of trade each year and contributes in
excess of $5 billion to the States economy annually.
Imports and exports through the Port of Melbourne
play an important role not only in the Victorian
economy, but also the economy of the adjoining
Local Government areas. The western suburbs
particularly benefit from the Port of Melbourne as the
contribution to these regional economies averages 2%.
8
2. Current Competitive Position
2 Aspects of the Greater Melbourne Freight Task: Report prepared for DoI by FDF Management, a Division of
Flagstaff Consulting Group Pty Ltd, November 2000.
The Port of Geelong handles various bulk
commodities including grain, woodchips, petroleum
products and chemicals.
The Port of Portland located in Victorias west serves
the aluminium smelter at Portland as well as the
agricultural, grain, mining and forestry industries in
Western Victoria.
Westernport at Hastings has facilities to handle steel
and petroleum products, while there are small
quantities of freight handled at Port Welshpool.
Melbourne Airport is well established as the largest
curfew-free airport in Australia and the second largest
airfreight facility behind Sydney. During 200001, it
handled around 233,000 tonnes of international
freight (in and out) and 123,000 tonnes of domestic
freight. International freight handling capability also
exists at Avalon Airport.
The logistics industry works to connect the parties
involved in the complex business of the movement of
freight and is key to the move towards more effective
and efficient operations by adding value rather than
just addressing the issue of reducing cost. The
logistics component of the TDL industry is growing as
an increasing number of companies in all industries
rely on logistics services either within their
organisation or through functions outsourced to third
party operations.
The importance of warehousing in the supply chain is
well recognised. The need to review the extent to
which inventory is stored for long periods, rather than
flowing through the chain quickly, is driving change to
the number, size, location and style of warehousing
operations. Large distribution centres which involve
significant cross docking functions are increasing, at
the expense of many smaller warehouses.
Employment in this sector is becoming increasingly
skilled as new systems are put in place to facilitate
the fast turnover of inventory.
2.2 Contribution to the
Victorian Economy
A combination of geographic and demographic
advantages makes Victoria a natural location for a
concentration of economic activity and associated
freight transport, distribution and storage activities. It
is located at the centre of the key economic triangle
encompassing Melbourne, regional Victoria, NSW,
South Australia and Tasmania. 70% of Australias
total population and the bulk of its manufacturing
capacity are captured in this economic zone.
An efficient TDL sector is essential to an efficient and
growing domestic economy as well as facilitating
international trade.
In a conservative estimate for 19992000, the hire
and reward component of the transport and storage
sector of industry contributed over $11.5 billion, or
around 7% to Victorias Gross State Product (GSP).
3
However, freight, transport and logistics activities are
also undertaken inhouse by entities in the economy
whose primary activity is other than transport and
logistics. If these activites are combined with the hire
and reward component, the overall contribution to
the economy is over $16.6 billion or some 10%.
4
According to Victorian Transport Association (VTA)
estimates, Victorian road freight alone generates well
over $10 billion of revenue each year.
2.3 Sector Performance
and Competitiveness
While the industry is comprised primarily of small
business operators it is dominated by a small number
of major companies that largely operate across a
number of transport modes.
In 199900, there were 16,200 businesses in the
sector in Victoria, 97.5% of which were small
businesses employing 20 employees or less.
5
Among them, 9,100 are single person businesses,
ie. non-employing businesses. A further 5,400
businesses are employing 1 to 4 employees, and are
often classified as micro-businesses.
9
3 Apelbaum Consulting Group, 2002 (Victorian Freight and Logistics Strategy).
4 ibid.
5 Australian Bureau of Statistics: Small Business in Australia (Update 19992000).
More than 32% of TDL businesses are located in
regional Victoria, employing almost a quarter (24%)
of the jobs in the TDL sector.
6
In the year ended March 2000, total private new
capital expenditure by the TDL sector in Victoria was
$887 million.
7
This spending was approximately
equally shared between equipment and buildings.
As at February 2001, the hire and reward
component of the Victorian TDL sector employed
106,500 people representing 4.5% of total
employment in Victoria.
8
Between 1996 and 2001, 5,824 new jobs were
created in the TDL sector, an aggregate 6% increase
over the five-year period or a compound annual
growth rate of 1.1%.
9
More than 80% of employment within the Victorian
TDL sector is represented by three sub-sectors
road transport, services to transport and storage.
10
Approximately 36% of total TDL employment in
Victoria (around 38,500 jobs) are in road freight.
11
Services to transport are also major employers, a large
part of which is in freight forwarding, and storage,
employing 15% and 8% of the total TDL labour force
respectively.
12
Between 1994 and 2000 employment in
road freight grew from approximately 26,000 to almost
40,000, and in the storage sector grew from just
below 5,000 to more than 10,000 workers.
13
Employment in the transport services sector
(including logistics, and supply chain consultancies),
grew significantly to 1996 but has settled at around
15,000 workers in 2000 (up from approximately
12,000 in 1994).
14
10
6 Australian Bureau of Statistics: 2001 Victorian Year Book.
7 Australian Bureau of Statistics: 2001 Victorian Year Book.
8 Australian Bureau of Statistics: Labour Force, Feb 2001 (Cat. 6202.2).
9 Australian Bureau of Statistics: Labour Force (customised data).
10 ibid.
11 ibid.
12 ibid.
13 ibid.
14 ibid.
Storage 12%
Transport Services 16%
Road Freight 41%
Rail, Water and Other Transport 5%
Air 10%
Road Passenger 16%
Victorian Transport and Storage Services, Employment by Sector 2002
Source: Australian Bureau of Statistics: Labour Force customised data.
The world economy is experiencing a major
competitive transformation involving drivers of
significant change including globalisation, the
application of information communication
technologies and the growing influence of the Internet
and e-commerce.
The TDL industry is, as an important part of the
economy, experiencing:
rapid transformation involving heightened world
competition
the demands of new business models on supply
chain management
the increasing importance of environmental
sustainability and a triple bottom line approach
the increasingly pervasive impacts of the use of
information communication technologies.
These strategic trends are discussed below.
3.1 Heightened
World Competition
Globalisation of manufacturing and service provision
means that goods manufactured in one place can be
used or sold in any other place in the world.
Globalisation has substantially increased the volume
and radically changed the nature of the demand for
international transport and logistics services.
World competition has created heightened pressures
on all players for increased efficiency and service
quality and for timely, consistent delivery of goods at
low cost. It has demonstrated that competition is
primarily between supply chains not simply between
individual enterprises.
For Victorian export chains to survive and prosper,
there must be a clear understanding of their need to
interconnect with the global market and the
requirements of the world economy.
3.2 Working through Networks
World-class logistics increasingly involves supply
chain networks and clusters.
Globalisation has contributed to the establishment of
global alliances between enterprises that would
otherwise be competing.
Large international TDL enterprises are increasingly
embracing alliances, as a method of cost reduction
and, by providing value-adding services to
customers, who have formed clusters themselves,
improving customer retention and creating a stable
stream of revenue.
Until recently, firms only provided a service to their
customers within a specific area of the supply chain.
Although many firms continue with this approach,
global firms are actively seeking to leverage the
capabilities of network partners operating within
different areas of the supply chain. This allows
multiple parts of the supply chain to be serviced
through the network.
Collaboration and information sharing between
supply chain members generates a strong
competitive advantage.
3.3 Using Information
Communication Technologies
The use of information communication technologies
including Electronic Data Interchange (EDI), Internet
services including e-mail, mobile telephone
technology including WAP systems, automatic
identification, supply chain software, global
positioning system tracking and live monitoring,
inventory control, virtual warehousing, and point-of-
sale warehousing are significantly changing the way
supply chains work and the manner in which TDL
services are provided.
These technologies enable greater reliability of
service, speed of delivery, retrievability of information
and management of the freight task, offering a
seamless service with real time information to service
providers and customers. They are providing a basis
for convergence and the erosion of boundaries
between suppliers, distributors and transporters.
11
3. Competitive Transformations
Improved freight responses to the needs of
manufacturers, who are using technologies to mass-
customise their production process to meet individual
customer requirements, are increasingly required.
Supplies and components ordered electronically as
needed means reduced inventory holdings and
requires TDL operators to provide immediate and
efficient delivery of intermediate and final goods.
New automated warehousing and distribution
solutions; integrating and computerising supply chain
functions; and redefining relationships with customers
and other network partners, are adding value to the
production and distribution process.
3.4 Using the Internet
and e-Commerce
The increasing use of the Internet to do business is a
global trend that is fundamentally changing the way
businesses operate.
In the TDL industry the Business to Business (B2B)
use of e-commerce technology combined with new
business operating systems software allows more
efficiently managed supply chain processes and
offers the potential of significantly improving customer
service, businesses cost effectiveness and profitability
of supply chain members.
The transfer of information becomes a simple matter
and the use of standard documentation for the
movement of goods means significant gains in speed
and accuracy.
The growth in the number of online retailers (e-tailers)
and in the online sale of goods by business to
consumer (B2C) requires a new means of delivery of
these goods (e-fulfilment).
The organisation of e-fulfilment is still taking shape
but will most certainly change the role of existing and
traditional distributors within the supply chain and
place new demands on the urban freight task as
goods are delivered directly to households.
3.5 Sophisticated Logistics and
Supply Chain Management
Supply Chain Management (SCM) is the integration of
key business processes from end user through to
original suppliers that provide products, services and
information that add value for customers and other
stakeholders.
Freight, logistics and SCM are key elements of the
total business process. They form part of the
business value chain that is increasingly a central
competitive base for businesses. Information
communication technologies (ICT) are enabling the
development of increasingly effective value chains.
Consequently the emerging direction of transport,
distribution and logistics involves the provision of an
integrated, seamless service along the whole
demand-supply chain from point of origin to point of
consumption with a clear focus on the customer.
For companies to survive and prosper, they will need
to operate their supply chains as extended
enterprises with relationships which embrace
business processes, from materials extraction to
consumption.
15
Increasingly the TDL industry is taking on a larger
part of the supply chain to include the management
of the whole process associated with supply into the
manufacturer, packaging, storage and inventory
control, transport and delivery direct to customer.
This includes the physical movement and
management of goods, the management of
information and relationship management based on a
collaborative approach.
The involvement of TDL expertise in the planning of
the total movement of products, not just in its
execution, is a means of improving the performance
of the whole chain. But even where TDL enterprises
play a more limited role they seek closer relationships
with their supply chain partners to benefit the whole
chain.
12
15 James E Morehouse. Extending the enterprise: Integrating the supply chain for Breakthrough Results. A Paper to the 1999 TLI Fall Forum
and logistics colloquium. 16-17 Nov 1999. University of Arkansas.
3.6 Inter-Modal Integration
Efficient integration of different modes of transport is
vital to an economys ability to increase freight
throughput, reduce delivery times and control and
minimise transport costs; to meeting the demands of
a highly competitive and global export environment;
and of e-commerce with its mass customisation of
products and 24 hour a day delivery.
The use of different transport modes to deliver goods
to their final destination requires significantly improved
inter-modal integration including the coordination of
road and rail systems, and the use of sophisticated
information and management systems that closely
link all components of the supply chain.
Strategic infrastructure development is central to
strengthening the value-adding capability of the
supply chain, improving inter-modal integration,
enhancing links between urban and regional area,
improving intra-regional links and facilitating exports.
The provision of efficient linkages in the rail, road, sea
and air network is essential to the efficiency and
profitability of the economy and to individual transport
operators; and to the capacity of the freight industry
to pursue the opportunities offered by the changing
transport and logistics environment.
This involves not only appropriate and capable
physical infrastructure but also Intelligent Transport
Systems providing advanced traffic control, driver
information and route guidance to facilitate traffic
flows and to allow the road network to accommodate
more vehicles at higher average speeds.
3.7 Education and Training
In the context of rapid change in the TDL sectors,
especially in the application of ICT, there is a
continuing and pressing need for education and
training at all levels within TDL enterprises, and
companies requiring SCM and logistics expertise.
Our capacity to offer education and training in SCM
and logistics to an international market is now
demonstrable, and there is further opportunity for
increasing our export of these talents. The links being
forged between Victorian and International educators
and trainers are increasing, and our reputation for
innovative, high-quality education is growing.
3.8 Regional Development
The efficient management of the freight task in
regional areas is central to the competitiveness of
regional industries, to regional employment growth
and to the efficiency and growth of the Victorian
economy overall.
The improved efficiency of freight and storage in
regional areas rests on improving the performance of
all of the enterprises involved in the supply chain, the
quality of the regional transport infrastructure and
inter-modal integration.
Improvements will involve more efficient supply chain
arrangements to increase efficiency, increase value
and cost effectiveness and enhance customer
service.
13
3.9 Social and
Environmental Improvement
The amenity of local communities, especially in areas
of concentrated transport activity in urban and
regional areas and along major truck routes is being
affected by the rapid and considerable growth in road
freight.
There is increasing community awareness of
environmental issues and the need for conservation.
The community increasingly demands reduction in
greenhouse gases and other elements of air pollution
and the reduction of transport impacts on local
communities.
The freight industry, especially the road freight sector,
must increasingly operate in a community which
values environmental sustainability and must therefore
consider the implications of this for its own
operations. Closer relationships between all supply
chain partners and the communities upon which they
have an impact, will assist in generating solutions to
complex sets of issues and reduce adverse targeting
of the transport element of the supply chain.
A modal shift to rail freight can contribute to a
reduction in carbon dioxide gas emissions and to
savings in consumption of liquid fuels for transport
services.
Beyond this however, vehicle use is likely to continue
to grow requiring strategies to promote better
utilisation of space resulting in fewer trips as well as
most technologically advanced transport systems.
Greater emphasis is increasingly placed on reverse
logistics, waste reduction and management including
recycling, reuse and source reduction. There has
been growing recognition of the need to consider
customer values and priorities and the economic and
social benefits of incorporating reverse logistics into
their business practice.
Another growing factor is the increasing tension
between passenger and freight transport. In some
cases these are interdependent, eg. most airfreight is
carried on passenger aircraft, but in many others they
compete for use of the same infrastructure. Looking
for ways to serve dual purposes by linking passenger
and freight needs and separating the two more
distinctly (freight routes) are probably both required.
Hazardous cargo handling practices maintain a strict
regime through internationally recognised practices.
Standardisation of the handling practices of
hazardous cargo and dangerous goods requires a
high degree of control and responsibility in handling
along the supply chain.
The issue of security of transport has also become a
global phenomenon and the TDL industry has been
targeted to adopt practices that minimise the ability
for breaches to occur. This requires that the integrity
of the entire supply chain can be demonstrated.
14
Victoria is well placed to build on its strong freight
industry base and to address the competitive
transformations that are currently proceeding and
that will proceed apace in the future.
Strategic actions need to be taken by industry and by
Government to address the current and future
competitive challenges that have been identified by
industry and Government and to pursue a vision of
Victoria as the State of supply chain excellence and
gateway of choice.
The strategic actions which are central to the pursuit
of this vision and which together constitute an
Industry Action Plan are to:
strengthen and complement ongoing consultative
mechanisms within the TDL industry and between
the industry and Government
improve the supply chain practices of Victorian
enterprises
encourage the uptake of e-commerce and the use
of technology in the supply chain
strengthen the education and training framework
for the TDL industry
facilitate transport development and connectivity,
regionally and in the metropolitan area
promote Victoria as the State of supply chain
excellence and gateway of choice within Australia
and internationally, and market the transport,
distribution and logistics industry as a desirable
career
facilitate initiatives to improve Victorias supply
chain capability through linking into relevant State
and Federal Government strategies and programs.
The rationale for and the key initiatives that constitute
the Industry Action Plan are discussed below and
summarised in table form from page 20.
4.1 Strengthen
Consultative Mechanisms
4.1.1 Background
Due to the industrys diverse and fragmented nature,
there is a challenge for industry members to
represent an overall industry view.
In recent years, initiatives have been taken to establish
and resource effective government/industry liaison
mechanisms in the areas of sea freight and airfreight
as well as road and rail freight. These Freight Council
structures have broken important ground in
encouraging broader cooperation between participants
across the international chains of sea and airfreight, as
well as the domestic focus of road and rail.
Yet the nature and breadth of the activities
characterised as comprising the transport,
distribution and logistics industry sector, dictates a
need to continue to find ways to strengthen the
mechanisms for sharing views and agreeing to
common actions. This relates to the wide range of
stakeholders, across metropolitan and regional areas,
involved in the TDL sector.
Improved consultative mechanisms at a macro level
would help to facilitate:
industry-wide consideration and discussion of key
issues and priorities
government and industry dialogue
links between metropolitan and regional elements
of the TDL industry.
Three key initiatives arise from this:
4.1.2 Victorian Supply Chain
Consultative Group (VSCCG)
In response to the views of the industry, the Victorian
Supply Chain Consultative Group (VSCCG) has been
established to:
focus industry and Government attention on
ensuring Victorias place as the supply chain
capital of Australia, through providing a forum for
Government Ministers and Departments, industry
associations and organisations to drive a
coordinated program over the next three years
15
4. Components of the Industry Action Plan
raise the importance of total supply chain
approaches to foster sustainable business
performance improvement, increasing Victorias
national and international competitiveness
monitor and report on the progress of the
implementation of the Transport, Distribution and
Logistics Industry Action Plan
provide a forum for dialogue between Government
and industry on best practice in collaborative
partnerships along supply chains, and
enhance the coordination of government strategies
and programs that affect supply chain
performance.
The VSCCG will be comprised of members of the
Industry Round Table, relevant Government Ministers
and representatives of Government Departments
(such as DOI, IIRD and DET) and will be chaired by
the Minister for State and Regional Development.
4.1.3 Industry Round Table (IRT)
In order for the industry to more systematically and
comprehensively consider issues and views of
industry-wide relevance, the Government will support
the establishment of an Industry Round Table (IRT).
The Audit identified the value of such a forum for
industry representatives to discuss future directions in
this diverse industry.
TDL industry members will determine the
membership of the IRT, but membership is envisaged
to include, but not be necessarily limited to:
Logistics Association of Australia
Supply Chain Council
Australian Production and Inventory Control
Society
Chartered Institute of Logistics and Transport
Australian Institute of Purchasing and Materials
Management
Victorian Transport Association
Victorian Sea and Air Freight Councils
Tradegate ECA
Victorian Trades Hall Council
Transport Training Victoria
The Strategic Audit for the TDL sector recommends
the establishment of a TDL Industry Round Table that
provides a focus for:
1) Facilitating discussions on relevant issues between
industry members, and co-ordinating action
2) Representing industry views on the VSCCG
3) Establishing Partner Reference Groups to further
particular issues relating to the Industry Action
Plan. The groups will cover issues such as:
a) Education and Training
b) Technology and e-Commerce
c) Workplace Practices
d) Supply Chain professional approaches
e) Freight Councils supply chain management
4) Informing, educating and consulting with the
industry
5) Investigating and promoting environmentally
sustainable logistics practice
6) Liaising with Government Departments and other
organisations to promote industry competitiveness
in areas including:
a) Logistics and supply chain management
b) Information communication technology
c) Education and training.
4.1.4 Sea and Airfreight Councils
The Victorian Government supported the Federal
Governments initiative of part funding for the
establishment of Sea and Airfreight Councils in each
State and Territory.
Victoria has been a strong participant in the national
co-ordination of logistics issues through the
Integrated Logistics Network (ILN) and sea and
airfreight chain initiatives through the Australian
Freight Council Network (AFCN).
16
The Victorian Government notes that the Federal
Government has announced its intention to renew its
contributory funding for these important consultative
mechanisms and drivers of change, as well as
continuing to support the ILN. The Government will
consider matching funding to enable these important
Councils to continue their work.
4.2 Improve Supply
Chain Practices
4.2.1 Background
An integrated, seamless service along the whole
demand-supply chain is the basis of industry and
enterprise competitiveness.
But there is a lack of awareness and understanding
of this approach. Many freight operators, especially
small and medium sized enterprises also lack the
management and business planning skills to provide
an integrated, seamless service.
Recognising the importance of improving supply
chains, the Victorian Government has established a
range of initiatives as part of a $1 million commitment
over 3 years to make Victoria the Supply Chain
Capital of Australia.
In addition, the Government has committed
$624,000 over 4 years to the Value Chain Workshop
program used to highlight the important role of
customers in the supply chain. The Value Chain
Workshops will be pursued across a range of
industries.
Four key initiatives arise out of this commitment to
improve supply chains:
4.2.2 Supply Chain Benchmarking
A systematic understanding of the strengths and
weaknesses of Victorias overall supply chain
capability is required to enable weaknesses to be
addressed and strengths further developed.
The Government will support a benchmarking project
to enhance the understanding of current supply chain
management performance within Victorian
enterprises. This project will enable enterprises to
assess their own performance and their strengths
and weaknesses and to address their areas of
weakness. A quick analysis for a company of their
current practice on a benchmarked scale will be
provided as a web-enabled and interactive tool.
4.2.3 Supply Chain
Collaboration Projects
Industry knowledge and experience of seamless
supply chain operations are limited. Many operators
and customers are unable to appreciate the potential
of supply chain improvements without being able to
see an integrated supply chain in action. Innovative
supply chain solutions do not tend to be considered
unless they can be seen to be successfully operating
in a real business environment.
Supply chain modelling using overseas and local
experience through the collaboration of significant
Victorian companies will be used to demonstrate the
operation and benefits of a seamless supply chain.
The collaboration projects will demonstrate elements
of best practice supply chains including cool and
cold chain processes, workplace arrangements and
environmentally sustainable logistics practice.
4.2.4 Highlighting Customers
Role in Supply Chain
Many supply chain participants, including large
national enterprises, are unaware or unconcerned
about their critical role in establishing a seamless
demand-supply chain.
Improvement in customers and suppliers awareness
and acceptance of their central role in creating a
seamless supply chain will be pursued through the
VSCCG and the IRT including the establishment of
Partner Reference Groups (PRGs) as working
committees and the possible inclusion of supply
chain partners on these bodies.
The Governments commitment to Cluster Mapping
for the food, health and automotive industries will
enhance supply and value chain development in
these industries and guide improvement in the
provision of TDL in these industries.
17
The Governments Value Chain Workshops will assist
companies to develop effective supply chains. This
workshop program will be relevant and accessible to
those businesses, particularly small to medium sized
enterprises (SMEs), which strive to provide seamless
supply chain services to their customers.
4.2.5 Improving Government Programs
Victorian Government business support programs are
constantly adapted to meet the changing needs of
Victorian enterprises.
The Government provides enterprise improvement
programs (diagnostics, business planning, change
management, training needs analysis etc.) to
Victorian business in general. These programs will be
reviewed with a view to ensuring relevance and
accessibility to freight and logistics operators striving
to provide seamless supply chain services to their
clients.
4.3 Increase the Uptake of
Information Communication
Technology (ICT)
and E-Commerce
4.3.1 Background
The use of ICT and e-commerce is rapidly and
significantly changing the way supply chains work.
Many large national and international TDL operators
are actively adopting IC technologies. These
enterprises, especially SMEs, which are less ICT
capable, are in danger of becoming uncompetitive
and marginalised.
The Victorian Government has recognised the
importance of boosting the use of e-commerce by
business and established the E-commerce Exhibition
Projects Program (ECEPP). The ECEPP supports
enterprises in developing innovative approaches to
business-to-business e-commerce.
It has also recognised the importance of increasing
access to training in ICT, especially for regionally
based SMEs by establishing the Roadshow Program.
Electronic inter-operability between an enterprises IT
and e-commerce is vital to the competitiveness of
Victorian operators. In recognition of this the Victorian
Government has supported Tradegate ECA through
the ECEPP to develop documentation services
known as Importnet and Exportnet. These services
provide benefits to small to medium importers and
exporters in speeding up processes, considerably
reducing paperwork and increasing accuracy for
booking and transporting of international freight.
4.3.2 ICT Demonstration Project
Many enterprises, especially SMEs, are not adopting
ICT in their operations due to lack of awareness, cost
concerns, and lack of skills. There is therefore a
pressing industry-wide need to promote uptake of
ICT and e-commerce especially amongst SMEs. The
Government has recognised this in establishing the
$10 million e-Commerce Advantage Program to
promote the uptake of e-commerce across Victoria,
especially by small and medium sized enterprises.
The Governments ECEPP has already successfully
supported the following projects (in addition to the
Tradegate ECA project mentioned above):
development of an electronic supply chain system
for the wet fish industry, linking the fishermen,
transporter, processor and distributor from ocean
to plate
providing producers, transporters and receivers of
hazardous waste access to mobile devices linking
them with the Environmental Protection Agencys
electronic system for the transport of hazardous
waste.
The ECEPP aims to provide assistance in developing
demonstration projects that provide practical
information on the costs and benefits of the use of
ICT by, and benchmarks for, enterprises in the TDL
industry particularly SMEs.
18
4.3.3 Facilitate Training in ICT to SMEs
Typically small operators in the TDL industry have
lower education and training qualifications than the rest
of the working population. However they are
increasingly required to understand and use, on a daily
basis, sophisticated communications technologies.
Training in these new technologies is vital to the on-
going viability of these operators and to building
greater industry competitiveness.
The Victorian Government will work with stakeholders
to deliver simple and accessible training programs in
the application and use of ICT in the TDL industry.
The Roadshow Program will be harnessed to provide
greater access to TDL industry members to training
in ICT in regional areas.
4.3.4 Developing Inter-operable
ICT Platforms
The use of a diversity of ICT and e-commerce
platforms and systems has led to problems with
integration between TDL enterprises and operators
and between these operators and their customers.
Inter-operable platforms for ICT that are of a
consistent international standard need to be
developed and implemented within critical areas of
the Victorian TDL industry in order that it can be
internationally competitive.
The Government will support the work of
organisations such as Tradegate ECA and EAN which
can provide
the basis for developing a technical foundation for
this inter-operability and which has industry-wide
application. A project working on a national repository
for codes used in the electronic transfer of
international documents will be managed by the
Victorian Government.
4.4 Strengthen Education
and Training
4.4.1 Background
The Strategic Audit highlighted the importance of
education and training and outlined the following key
issues:
low levels of education and training qualifications
of the TDL workforce
increased ageing of the TDL workforce, and of the
education and training workforce supporting the
industry
greater demands on the existing workforce to
upskill as a result of the introduction of
sophisticated new information and communication
technologies and supply chain management
practices.
The Audit recognised that education, training and a
highly skilled workforce are fundamental to an
innovative economy. The Victorian Government is
committed to developing the skills of the workforce,
skills for the innovation economy and to better match
the needs of the industry.
Nationally accredited training of operative employees
in the industry has increased significantly in recent
years, however more needs to be done to improve
the skill base of the industry.
In June 2001, the Minister for Education and Training
released Knowledge and Skills for the Innovation
Economy, a statement on the future directions for the
vocational education and training (VET) system in
Victoria. The statement outlines the next steps in
transforming Victorias vocational education and
training system from one designed for an industrially
based economy to one that assists businesses to
compete in an innovation economy and develop the
skilled workforce needed for the future.
The statement outlined the following key initiatives:
Reinvigorate TAFE so that it has a highly skilled
workforce to provide innovative and relevant
thinking for businesses and for students preparing
for active participation in the innovation economy
19
Support the development of new vocational and
education training products to meet the generic
skills needs of individuals and businesses, to
address new and emerging skills needs, to value
local customised responses and to improve
learning pathways
Implement a coordinated development of lifelong
learning by linking vocational education and
training (VET) and the benefits of close
association with industry to adult community
education, schools and universities.
The Victorian Government has also established 31
Local Learning and Employment Networks (LLENs)
covering the whole State. LLENs are networks of
groups and individuals involved in post compulsory
education, training and employment in local areas.
The Victorian Government has contracted in excess
of $11 million for TDL industry training delivery in
2002.
4.4.2 Establish TDL Education and
Training Needs, and Strengthen Industry
Consultation and Advisory Mechanisms
Skill requirements in the TDL industry are changing
rapidly, reflecting the introduction of new technology
and supply chain techniques.
While Transport Training Victoria (TTV) and
educational institutions review training needs there is
also a pressing requirement to undertake a broad
education and training needs analysis to better
examine current and emerging skills needs in the TDL
industry especially in the areas of logistics
management and information and communications
technology.
There is a need to strengthen and extend industry
consultative and advisory mechanisms to ensure
education and training provision is seen to meet
current and future needs of the industry. There is a
need to build bridges and relationships between
industry participants and various levels of education
and training provision to facilitate closer consultation.
The Victorian Government is currently assessing the
mechanisms by which advice on industry training
needs and skills formation is provided through a
review of its industry advisory arrangements. The
review will be completed in 2002 to allow for the
introduction of new arrangements in 2003.
The Government will review the mechanisms by
which advice on industry training needs and skill
formation is provided through a review of industry
advisory arrangements.
4.4.3 Focus on Logistics and Supply
Chain Management
The future competitiveness of the Victorian TDL
industry will be heavily dependent on the skills of its
workforce in logistics and supply chain management.
These skills will be required across all occupations
and skill levels.
Actions will be taken to provide a stronger focus on,
and appropriate skills in, logistics and supply chain
management. The Victorian Government will:
encourage Victorian and Commonwealth agencies
to increase education and training opportunities in
logistics and supply chain management in higher
education, TAFE and other educational institutions
in metropolitan and regional Victoria
support the Federal Government Action Agenda
initiatives on logistics and supply chain
management education and training
maximise opportunities for credit transfer and
articulation between VET qualifications and higher
education courses in logistics and supply chain
management
promote lifelong learning and career pathways in
logistics and supply chain management
support investigation by the TDL sector of the
potential for a Centre of Excellence in Logistics
and Supply Chain Management
utilise Victorian Government Enterprise
Improvement Programs to assist firms to use
vocational training.
20
4.5 Facilitate Transport
Development and Connectivity
4.5.1 Background
World-class freight infrastructure is central to the
international competitiveness of Victorian freight and
logistics operators and to the wide range of Victorian
industries that use them.
The efficient operation of the ports, especially the
Port of Melbourne and Melbourne Airport, is vital in
ensuring that Victoria is the supply chain centre and
key international Australian gateway. Port
infrastructure must be maintained and improved and
vital road, rail land and support service facilities need
to be protected.
Increasingly, a combination of different transport
modes is being used in efficient supply chain
completion. This trend to the use of a diversity of
transport modes requires improved inter-modal
integration. This requires both a focus on the better
use of existing infrastructure and the development of
new infrastructure appropriate to the inter-modal
tasks.
The necessary coordination of road, rail, sea and air
links requires planning for the strategic long-term
development of inter-modal hubs both in regional
areas of Victoria and in metropolitan Melbourne.
Planning for efficient inter-modal infrastructure and
systems is vital to the realisation of the vision of
Victoria as Australias supply chain capital and in
attracting international enterprises to Victoria,
especially those wanting to establish major regional
distribution centres.
The Victorian Government has a central role in
planning, coordinating, funding and providing for
transport infrastructure, both at regional and
metropolitan levels.
4.5.2 Supporting Freight Infrastructure
The development of regional and metropolitan
transport hubs will involve considerable private
industry investment and long-term commitment to
operating in the Victorian TDL industry.
In order to secure significant long-term private
industry investment, the Victorian Government
recognises the need to establish processes and
mechanisms to facilitate these investment decisions.
The Victorian Government will therefore:
establish and apply a systematic assessment
model for inter-modal development proposals
establish clear criteria for Government support for
inter-modal developments that are consistent with
its strategic approach
safeguard the resources required for the
development of strategic TDL inter-modal capacity
including land around air, rail and sea facilities and
for distribution centres and access.
4.6 Market the Victorian
TDL Industry
4.6.1 Background
Many enterprises within the Victorian TDL industry
are highly competitive and are actively pursuing
worlds best practice in logistics and supply chain
management consulting towards making it the supply
chain capital of Australia.
Although a number of national and international
enterprises are attracted by the competitive
advantages of doing business in Victoria, there is a
need to market the advantages of Victorian TDL
capability to a wider audience including:
Australian exporters and importers involved in
inter-state and international freight movements
intending to expand their business
international manufacturing and retailing
companies that wish to establish operations in
Australia
international TDL service providers that wish to
establish regional centres in the Asia/Pacific region.
21
4.6.2 Promoting TDL Capability
The Governments investment-attraction efforts
promote Victoria in Building Tomorrows Businesses
Today as a highly skilled, cost-effective strategic
location with a sophisticated, innovative and
internationally focused business base. As part of its
$4 million program to strategically promote Victoria
as a premium business investment destination, the
Government will promote the competitiveness and
capabilities of the TDL industry.
The program will target specific national and
international enterprises that have current or future
logistics and supply chain requirements that can be
met in Victoria.
Opportunities will be pursued for the establishment
of:
Asia/Pacific hubs for international distribution and
logistics enterprises
manufacturing and assembly of high value goods
for export
manufacturing in bond facilities, within the vicinity
of Melbourne Airport.
In addition, a leading edge investment website will
market Victorian industry and regional opportunities,
including TDL, to domestic and international
enterprises.
The establishment of a high level committee
comprising the Melbourne Port Corporation,
Melbourne Airport, the relevant Freight Councils,
representation from the Industry Round Table and
relevant Government Departments, will develop joint
marketing strategies to promote Melbourne as an
international gateway for exporters and importers.
4.6.3 Marketing Careers in TDL
Many potential new workers in the TDL industry,
especially young people do not see a job in the
industry as a desirable career opportunity or the
basis of a long-term career path because of the
industrys image as unsophisticated and low skilled.
This is reinforced by an education system that has
traditionally focused students solely on passing VCE
and does not generally represent entry into the TDL
industry as a desirable career or learning pathway for
school leavers.
In order that young people are made aware of the
real career opportunities that exist in the TDL industry
and for the industry to attract more of the brightest
young people a dual approach will be undertaken
involving:
links into programs to market the manufacturing
industry as offering excellent long term careers for
young Victorians
coordinating industry and Government initiatives
with secondary schools to provide information to
students, by their peers, on available training
opportunities and mechanisms and career
opportunities and paths in the TDL industry.
4.7 Facilitating Victorian
Government Initiatives
4.7.1 Background
There are a large number of actions that must be
taken by enterprises in the industry and by the
Government to enhance the competitiveness of the
Victorian TDL industry and contribute to achieving the
vision of making Victoria the State of supply chain
excellence.
The Victorian Governments role in facilitating freight
planning and infrastructure development and
improvement is critical to the industrys
competitiveness. The Government has recognised
this and is developing a Victorian Freight and
Logistics Strategy to provide clarity and consistency
in the Governments role as facilitator, regulator and
partner with industry in freight and logistics
infrastructure and systems development.
22
4.7.2 Whole-of-Government Approach
The Government recognises that it is vital that a
coordinated, whole-of-government approach is taken
to these broad and complex issues to ensure
effective Government coordination, timely decision
making and the efficient application of resources.
The Victorian Governments commitment to
facilitating the pursuit of the industrys vision is
reflected in its development of the Victorian Freight
and Logistics Strategy. The Victorian Government will
develop and implement the strategy using a whole-
of-government approach. It will focus on the longer
term issues of Governments role in infrastructure,
planning and supply chain logistics.
4.7.3 Issues Raised by Industry
for Consideration
The Audit consultations raised a wide range of issues
that industry believes important to the effective
provision of freight infrastructure and systems. The
Victorian Freight and Logistics Strategy will consider
these issues in the course of developing a range of
directions, strategies and actions related to the
challenges of dealing with forecast freight growth, in a
sustainable and responsible manner.
Issues raised include:
Environment
Improving efficiency in freight and logistics
processes and the sustainable use of assets with a
view to reducing greenhouse gas emissions, and
reduction of waste
Promoting and regulating environmentally
sustainable logistics practice
Support for research, development and
commercialisation of innovative fuel technologies
and alternative fuels for road transport
Community Consultation
Enhance community understanding of the vital
economic role played by freight infrastructure
Clarify and discuss within residential communities
the social impacts of the growth in freight
operations proximate to and within those
communities
Consolidate community support for the
development of freight infrastructure and
improvements to freight systems and develop
mechanisms for addressing issues of community
concern such as night traffic, noise, pollution and
congestion
Local Government
Reinforcing information to Local Government on
their rights and responsibilities in relation to truck
access
Encouraging take-up of VicRoads guidelines for
truck access to local areas
Requesting Local Government prepare forward
plans to provide truck and rail access to new
industrial areas
Requiring Local Government to undertake
coordinated land use planning to provide area
wide road and rail traffic management across a
range of Councils
Federal and State Government Liaison
Liaising with the Federal Government to ensure the
effective operation of the ACS Cargo Management
Re-Engineering (CMR) program to minimize
detrimental impacts on the TDL sector
Liaising with the Federal and other State
Governments to address freight data deficiencies
23
Road
Undertaking a review of a strategic network of
freight and truck routes in Victoria
Undertaking a review of urban traffic management
requirements for e-fulfilment in local
neighbourhoods
Introducing a comprehensive network of Intelligent
Transport Systems in metropolitan Melbourne
Studying means of increasing truck capacity
utilisation in metropolitan and regional areas
Encouraging and assessing innovation that will
increase road freight efficiency and reduce social
and environmental impacts
Rail
Advocating changes to taxation treatment of
infrastructure development to the Federal
Government
Continuing standardisation and upgrade of
Victorian rail track
Supporting continuing private investment in
strategic rail track in Victoria including ways of
promoting the reinstatement or construction of
private rail sidings
Promoting industry cooperation with organisations
involved in innovation such as the CRC for Railway
Technology and Engineering
Air
Ensuring continued curfew free operation of
Melbourne Airport
Monitoring freight issues surrounding the
introduction of new generation aircraft
Encouraging improvement of air cargo terminal
facilities and processes
Promoting increased services to Melbourne by
international airlines
Sea
Channel deepening in Port Phillip Bay
Facilitating the development of strategically located
container parks and port related services
Reviewing access to food grade containers
Encouraging the establishment of the Australian
head office of international shipping companies in
Melbourne
Land planning and reservation around ports.
The whole-of-government approach reflected in the
Victorian Freight and Logistics Strategy will provide a
framework within which broader issues identified by
the Audit can be considered in a strategic, systematic
and timely manner.
The VSCCG and the IRT will also provide appropriate
forums to encourage these issues to be referred to
relevant parties for action.
Links with relevant Federal bodies and programs will
also ensure coordination across state borders and
may provide resources to implement projects with
significance not only to this state but nationally.
24
25
5. Actions for Implementation
over a Three-Year Period
Facilitate training in ICT to
SMEs
DET and IIRD
Harness the Roadshow
Program to provide ICT training
to regional TDL enterprises
IIRD
Support the development of
Inter-operable ICT systems
IIRD and IRT
Facilitate ICT demonstration
projects harnessing ECEPP
IRT with IIRD
4.1 Strengthen
Consultative
Mechanisms
4.2 Improve
Supply Chain
Practices
4.3 Increase the
Uptake of ICT
and e-commerce
Action To Commence Action To Commence
Initiative Within One Year Timeframe Within Three Year Timeframe Parties
Establish Victorian Supply
Chain Consultative Group
(VSCCG)
Victorian
Government with
Industry
Establish Industry Round-Table
(IRT)
Industry with IIRD
Establish relevant Partner
Reference Groups
Industry with IIRD
Press for government
contributory funding to Air and
Sea Freight Councils
DOTARS, DOI and
IIRD
Undertake Supply Chain
Benchmarking of SCM
performance of Victorian
companies
Promote findings IIRD with IRT
Undertake Supply Chain
Collaboration Projects to
demonstrate best practice
Promote findings IIRD with ITR
Ensure relevance of Government
Business Support Programs
to TDL
IIRD
Set up a quick analysis of Supply
Chain practices on web site
IIRD with IRT
Undertake value chain
workshops for supply chain
partners
Promote findings IIRD
Coordination of an annual
Supply Chain Summit for
participants
VSCCG, IRT
and IIRD
26
4.4 Strengthen
Education and
Training
4.5 Facilitate
Transport
Development and
Connectivity
Action To Commence Action To Commence
Initiative Within One Year Timeframe Within Three Year Timeframe Parties
Review industry advisory
arrangements
DET, STS
stakeholders
and IRT
Undertake a training needs
analysis for the TDL industry
DET, IRT, STS
Map TDL career path linkages
between vocational and tertiary
courses
IRT, DET, IIRD, STS
Promote lifelong learning and
career pathways in logistics
and supply chain
management
DET and IIRD, IRT
Facilitate an increase in
education and training
opportunities in logistics and
supply chain management in
Victorian Universities and
TAFE, the vocational sector
and the training sector
DET, DEST, IIRD,
IRT, STS
stakeholders
Maximise opportunities for
credit transfer and articulation
between VET qualifications and
higher education courses in
logistics and supply chain
management
DET, STS, IIRD, IRT,
DOTARS
Support Federal Government
Action Agenda initiatives
IIRD and DOI, DET,
DOTARS
Enable articulation of VET
qualifications to University
courses in transport, logistics
and supply chain
management
DET, DEST,
DOTARS, IIRD
Establish a systematic
assessment model for inter-
modal hub proposals
DOI, IIRD
Establish criteria for
Government support of inter-
modal hub proposals
DOI, IIRD
Safeguard resources for
inter-modal hubs
DOI, IIRD
27
Action To Commence Action To Commence
Initiative Within One Year Timeframe Within Three Year Timeframe Parties
4.6 Marketing the
Victorian TDL
Industry
Undertake a targeted marketing
program to promote Victorian
TDL capability
IIRD
IRT, VSCCG
Leverage marketing of Victorias
manufacturing industry image
to young people to include
careers in SCM and logistics
IIRD and VSCCG
Market careers in the TDL
industry to students through
secondary schools and in
post-secondary and tertiary
institutes
DET, IIRD and IRT
Explore the development of a
website for Victoria as the
Supply Chain Capital
IIRD and IRT
Promote our capability in
handling international freight
through good SCM, to new and
potential investors, key
exporters and importers by
developing joint marketing
strategies for Melbourne as an
international gateway
IIRD, DOI,
Melbourne Airport,
MPC, VSFIC, VAC,
IRT
Support the development of a
whole-of-government Victorian
Freight and Logistics Strategy
DOI and other
relevant Government
Departments
Build links with related National
bodies and programs
IIRD, DOI,
DOTARS, AFFA
4.7 Facilitating
Victorian
Government
Initiatives
DET Department of Education and Training
STS State Training System
IRT Industry Round Table
IIRD Department of Innovation, Industry and Regional
Development
DOI Department of Infrastructure
DEST Department of Education Science and Training
(Commonwealth)
DOTARS Department of Transport and Regional Services
(Commonwealth)
VSCCG Victorian Supply Chain Consultative Group
MPC Melbourne Port Corporation
VSFIC Victorian Sea Freight Industry Council
VAC Victorian Airfreight Council
AFFA Department of Agriculture Fisheries and Forestry
(Commonwealth)
Acronyms
28
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U
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L
I
C
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T
Y

W
O
R
K
S

2
1
1
4
4

D
S
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D

C
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U
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U
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2