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ALC welcomes PPP reform, demands more action

The Australian Logistics Council has welcomed Prime Minister Kevin Rudd’s announcement that governments will conduct a major overhaul of PPP regulations in order to encourage greater private sector involvement in infrastructure delivery, but only if the governments also commit to continue growing their investment in our key transport networks, ALC chief executive Hal Morris said.

“The Australian freight industry has long been calling for the streamlining and simplification of transport and investment regulation throughout Australia, and welcomes today’s initiative of the Rudd Government that will help address the infrastructure bottlenecks holding back our economy,” Mr Morris said.

Prime Minister Rudd has announced the development of an integrated set of national PPP regulations with the aim of encouraging more investment in key infrastructure by the private sector. This, in conjunction with the new Infrastructure Australia’s review of infrastructure priorities, will provide a clear path forward for governments and industry.

“Any move towards consistency of regulation and improved transport infrastructure is a move in the right direction for Australia’s supply chains.

“It is vital, however, that transport infrastructure investment is considered on a whole of supply chain basis with all modes and connections taken into account in determining future priorities.

“The private sector, rightly, will only be interested in investing in projects that provide strong returns for their outlays.  Many critical projects will not be suitable for such investment.  It is therefore vital governments also increase their investment in key infrastructure projects. 

“The Australian logistics industry believes it is vital that Australia’s transport networks receive the investment needed to ensure our supply chains work efficiently.  Unfortunately current supply chain blockages are holding back our nation’s international performance.

“Only concerted effort, including additional investment by governments and the private sector in our road and rail networks, as well as improved connection and coordination of intermodal terminals and ports, will address these blockages,” Mr Morris said.

The Australian Logistics Council (ALC) is a national umbrella body representing all players in Australian transport and logistics industry, providing an intermodal and unified voice on issues critical to the whole of Australia’s freight supply chain.  The ALC will be releasing a comprehensive national strategy for the freight industry at its Annual Forum this Friday, 15 February.

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