Genesee & Wyoming Australia (GWA) says it invested heavily in the Eyre Peninsula rail network prior to the departure of key grain customer Viterra, and has lambasted its unfair disadvantage against road haulage in South Australia. Read more
Air freight demand continues to suffer from the effects of the US-China trade war, as figures fell again in May. Read more
C.H. Robinson continues to expand its global footprint with its second acquisition of 2019. The company has acquired Dema Service, an Italian-based provider of European road transportation.
“The acquisition of Dema Service is an exciting milestone for C.H. Robinson and will strengthen our existing footprint in Italy, one of the largest road transportation markets in Europe. We are eager to work with Dema Service’s customers to offer our full suite of logistics services to help improve their supply chains,” Jeroen Eijsink, President of Europe for C.H. Robinson said.
The company recently acquired the freight forwarding group Space Cargo, which expanded C.H. Robinson’s presence in Spain and Columbia.
Dema Service is a privately-owned logistics company providing road transportation services across Europe. Headquartered in Pescara, Italy, Dema Service has approximately 100 employees and three offices located in Italy, Poland and Czech Republic.
“We are excited to join C.H. Robinson, one of the world’s largest third-party logistics (3PL) providers, and contribute to the company’s strong presence in Europe. Our extensive local market knowledge in combination with C.H. Robinson’s global network will allow us to provide world-class service to customers,” Mauro de Lellis, Co-Founder of Dema Service said.
C.H. Robinson will integrate Dema Service into its European Surface Transportation division and single global technology platform, Navisphere.
The Australian Logistics Council (ALC) has congratulated Prime Minister Scott Morrison for his decision to incorporate freight transport as a specific responsibility in his revamped ministerial line-up.
“The Prime Minister is sending an important message to our industry and to the wider community with this announcement,” Kirk Coningham, CEO at ALC said.
“ALC especially welcomes the appointment of Hon. Scott Buchholz as Assistant Minister for Road Safety and Freight Transport. It is significant that freight transport is now a specific portfolio title within the ministry, and highlights that enhanced supply chain performance will be a priority for the re-elected Coalition Government.”
“ALC also congratulates Deputy Prime Minister Hon. Michael McCormack MP on his re-appointment as Minster for Infrastructure, Transport and Regional Development, and Hon. Alan Tudge MP on his elevation to Cabinet as Minster for Population, Cities and Urban Infrastructure.”
“We also welcome Hon. Sussan Ley MP as Minister for the Environment, and congratulate Senator Hon. Matt Canavan on again being appointed Minster for Resources and Northern Australia.”
“During the election campaign, ALC released Freight: Delivering Opportunity For Australia which sets out 39 priority actions for the incoming Federal Government that address challenges and opportunities relevant to all modes of freight transport.”
“ALC will be pursuing the matters contained in this publication with the re-elected Coalition Government, and ensuring that supply chain efficiency and safety is appropriately prioritised in government policy making.”
“The most urgent priorities are the finalisation the National Freight and Supply Chain Strategy, establishing the National Freight Data Hub, making certain that electric freight vehicles form part of the National Electric Vehicle Strategy the Government has committed to develop, and doing more to enhance freight infrastructure in Northern Australia, so we can take advantage of the region’s proximity to growing export markets.”
“ALC also congratulates Hon. Anthony Albanese on his appointment as Leader of the Opposition. Given his vast experience in dealing with infrastructure related matters, there is now a genuine opportunity to build a long-term approach to infrastructure planning and investment that is truly bipartisan in nature. ALC hopes to work closely with both the Government and the Opposition in furtherance of that objective.”
The Australian Logistics Council (ALC) has expressed concern regarding the lack of focus from all sides of politics on Australia’s supply chain and freight in election campaign policy announcements. Read more
CEVA Logistics has announced it has been awarded a three-year deal to manage and deliver LUSH products to its stores across the UK and Ireland.
With this new agreement, CEVA will be responsible for moving the full range of items sold by LUSH.
As a further part of the value-added solution, CEVA’s shared user network will be utilised to perform final mile delivery to almost 80 stores and ensure full visibility of all products as they are moved.
“We are delighted to be working with LUSH Cosmetics as their official supply chain logistics provider. Our shared values mean LUSH will benefit from CEVA’s approach to minimising our combined impact on the environment through environmentally responsible logistics solutions. We will use our experience and expertise to deliver and add value to their supply chain operations and ensure a focus on continuous improvement,” Eddie Aston, CEVA’s UK, Ireland and Nordics Managing Director said.
“CEVA really stood out during the tender process with their dedication and hard work to deliver precisely what we need across our distribution network. We are delighted to be working with them,’ Dan Payne, LUSH’s Logistics Manager said.
Australian Logistics Council
Freight: Delivering Opportunity For Australia identifies 39 priority actions for the incoming Federal Government to pursue that address challenges and opportunities relevant to all modes of freight transport.
“The priorities ALC is releasing have been identified by industry participants as critical to improving the efficiency and safety of Australia’s supply chains, and meeting a growing freight task,” said ALC CEO Kirk Coningham.
“With our industry having received a bipartisan commitment to finalise the National Freight and Supply Chain Strategy, the first priority for whichever party wins on 18 May must be to work with state and territory governments to finalise and implement action plans that will ensure the strategy delivers for industry.
“In that context, the priorities ALC is now putting forward will help to bolster the effectiveness of that strategy by addressing some of the long-term infrastructure, investment and regulatory issues that act as an impediment to a seamless national freight network.
“Enhanced supply chain performance is not a niche issue. Every individual Australian relies on freight every day, no matter where they live. If we are going to meet the challenges that arise from a growing population and changing consumer expectations around rapid delivery, it will be necessary to implement the sorts of reforms ALC has set out.
“The priorities that ALC has identified touch on a range of issues, including a more consistent national approach to planning and investing in freight infrastructure, enhancing the productivity of our road and rail networks through regulatory reform and strengthening our export performance through enhanced freight infrastructure in Northern Australia.
“There are also suggestions for improving the industry’s environmental performance by encouraging uptake of electric freight vehicles, ensuring the industry is able to access data that will allow more effective monitoring and measurement of supply chain performance, improving the wider community’s understanding of this industry and enhancing its ability to interact safely with freight vehicles.
“While many of these reforms will be challenging, they are absolutely essential to securing Australia’s continued economic success and creating more liveable communities.
“Although this reform agenda must be led by whichever party forms government, success will ultimately depend on cooperation and collaboration with all members of the 46th Parliament. It is important that all parliamentarians recognise that responsibility, whatever their political stripe.
“To that end, ALC will seek to work closely with all political parties in the next Parliament to secure these policy reforms, and implement a National Freight and Supply Chain Strategy that allows this industry to keep delivering for all Australians.”
Australasian Railway Association
The Australasian Railway Association (ARA) has also released its priorities policy development paper for the 2019 federal election.
Titled Rail: Creating Vibrant Cities, Thriving Regions and a Connected Nation, the paper sets out key transport infrastructure challenges facing the Australian government and offers practical, affordable and achievable policy solutions where rail can play a key role.
“As our cities continue to grow and our freight task increases the pressure on our existing infrastructure network also increases,” said ARA CEO Danny Broad.
“Avoiding and reducing congestion is one of the biggest benefits that can be achieved by moving passengers and freight onto properly planned and funded rail solutions, integrated with other transport modes.”
The ARA’s five priorities are:
- Making cities liveable: the Australian government must continue to increase funding of urban passenger and freight rail projects which are essential to reduce road congestion, improve quality of life and increase productivity.
“With increasing support from both main political parties for passenger and freight rail projects, we look forward to this continuing and urge against stop start approaches to rail infrastructure funding.”
- Connecting our regions: the Australian government must plan and resource inter-regional fast rail projects and east coast high speed rail through a national planning agency.
“Pleasingly, both major political parties now support the establishment of a national planning agency to underpin their respective visions for inter-city rail connectivity, examine funding options and acquire the sought-after corridors.”
- Supporting employment: Skilled labour shortages threaten the delivery and cost effectiveness of new and existing rail infrastructure projects. The Australian government needs to lead the response to critical rail skills shortages by formalising a high level taskforce to lead reforms, build partnerships and implement expert recommendations to deliver fit-for-purpose education and training.
“If we are to reap the benefits of rail, industry and government need to make the necessary reforms together and increase investment in fit-for-purpose education and training.”
- Strengthening our economy: We need safer, more sustainable and efficient ways to move freight by rail. The Australian government needs to implement the national freight and supply chain strategy and incentivise jurisdictions to support its delivery. The ARA urges continued funding and political support of the Inland Rail project to ensure its timely delivery.
“The government also needs to level the playing field between road and rail. We need independent price regulation of heavy vehicles and mode neutral policies. Freight rail operators, charged at full market rates to access infrastructure have endeavoured to compete with heavy vehicles that access publicly subsidised roads.”
- National coordination to support industry: Rail contributes $26 billion to the national economy, while employing thousands of Australians in many small to medium size enterprises. However, its efforts are dissipated by fragmented approaches to investment, procurement, construction and regulation across eight different jurisdictions.
“Strong industries don’t develop by chance. The Australian government must lead the development of a national rail industry plan to achieve a coherent national approach to rail, covering procurement, local content, manufacturing, innovation and research, and harmonisation of standards.”
“We look forward to working with government to realise the full national benefits of these rail policies,” Mr Broad concluded.
Jungheinrich is expanding its spare parts logistics capacities in Southeast Asia. With the opening of a spare parts centre in the Southeast Asian trade and logistics metropolis of Singapore, the company has reduced the delivery times of replacement parts by up to five days.
Jungheinrich customers all over Southeast Asia, Australia and New Zealand will benefit from the increased spare parts availability. This will enable Jungheinrich to also satisfy particularly urgent customer requests in the APAC region by providing round-the-clock access to spare parts.
“The new spare parts centre in Singapore will strengthen our position as the market leader in terms of spare parts availability by now also covering Southeast Asia and the Pacific area,” Stefan Brehm, Vice President of After Sales at Jungheinrich said.
“By bridging up to seven time zones, we will be able to react faster to the requests of our customers. For Jungheinrich customers, this represents minimal downtime and maximum productivity.”
In addition to the customer service aspect, environmental considerations at Jungheinrich also played an important role. Through the additional optimisation of the region’s transport network, CO2 emissions will be reduced by 75 per cent. Furthermore, the spare parts centre is a perfect example of efficient and intelligent warehouse management thanks to its modern lift rackings and lithium-ion powered forklift trucks.
The Australian Logistics Council (ALC) has welcomed confirmation that the federal election will be held on 18 May.
The election announcement coincided with the inaugural meeting of ALC’s Northern Australia Working Group, which took place in Darwin.
“It is fitting that the election announcement has come on the same day that ALC’s newly-formed Northern Australia Working Group meets for the first time, because so much activity in this region underpins Australia’s economic performance,” said ALC CEO Kirk Coningham.
“Our Working Group brings together freight logistics companies, infrastructure owners, local and state government representatives and other key industry organisations to advocate more effectively for investment in Northern Australia’s freight infrastructure, and work with policy makers to get regulatory settings right.”
“ALC has formed this Working Group because we recognise that Australia’s ability to take full advantage of free trade agreements recently signed with rapidly growing Asian markets rests on our ability to get our export products to market, efficiently and safely.”
“It is vital to make certain that Northern Australia has the road, rail, port and air freight infrastructure necessary to get products demanded by our trading partners to their destination as quickly as possible. This is particularly important when it comes to agricultural goods and other consumables, where freshness is highly prized by overseas customers.”
“Enhanced supply chain performance in Northern Australia is important for the entire nation, because freight does not stop at state borders. A key focus for the next Parliament must be to ensure greater national consistency in our approach to the movement of freight.”
“In the coming days, ALC will be releasing a comprehensive statement of the freight logistics industry’s policy priorities for next Parliament.”
“Chief among these will be to build on the bipartisan commitment to finalise the National Freight and Supply Chain Strategy, and work with state and territory governments to ensure its effective implementation, so that Australians can share in the benefits that come from improved supply chain performance – wherever they live,” Mr Coningham said.
The iMOVE Cooperative Research Centre has released its report recommending establishment of a National Freight Data Hub to track freight use and identify choke-points and congestion across Australia.
Federal Transport Minister Michael McCormack has confirmed iMOVE’s Freight Data Hub recommendation has been accepted and will be established with more than $8m in funding.
The hub will act as the nation’s central collector and disseminator of freight data, in the same way that the Australian Bureau of Statistics provides a vital information for managing the economy.
“The expanding population and the growing popularity of online shopping are dramatically increasing the national freight task,” iMOVE managing director Ian Christensen said.
“iMOVE expects this to increase by 75% in 20 years (2011-2031) and that means, more trucks, more freight trains, and vehicles operating more hours every day.
“That growth in truck movements is ringing alarm bells. It brings with it the unenviable prospect of more congestion, more air pollution, more noise and more truck accidents; unless we do something about it,” Mr Christensen said.
The new hub will harness cutting-edge technology, to monitor freight use of the country’s transport system. It means, for the first time, there will be central, neutral collection point for data of all freight transport system users – private companies, regulators, state transport departments and other government agencies.
“In a country as large, and yet as intensely urbanised as Australia, freight supply chains play a key role,” Mr Christensen said.
“They connect our mining and agricultural resource basins to our cities and ports and, in the reverse case, receive and distribute containerised merchandise and vehicles sourced from overseas. The efficiency of these freight supply chains materially impacts on our productivity performance and, ultimately, living standards.
“These new datasets will provide valuable information about current and future congestion choke-points and where scarce public investment should be best directed,” he said.
Mr Christensen said the economic gains from making better use of freight date were significant.
“The contribution of Australia’s freight supply chain industry to GDP is well over $100 billion annually. Our study found that a 0.1% (that is, a one-tenth of 1 percent) improvement in industry productivity would be substantial. iMOVE is pleased that the Federal Government has recognised of the importance of the freight sector to the national economy, and the importance of data flow to the efficiency of the transport system.”
Mr Christensen added:
“Going forward however, it is not just individual freight operators that have to perform well, but now all the parties in a supply chain must coordinate their actions to deliver end to end efficiency. That means, despite each organisation’s fierce independence, we are all parts of a system and have to work together. Australia’s success depends on the performance of that system.”
The reforms build on the 20-year National Freight and Supply Chain Strategy, which recommends benchmarking freight performance through identifying, collecting and sharing data.