Western Roads Federation - Why road transport is losing

WESTERN ROADS FEDERATION by Cam Dumesny, CEO

WHY ROAD TRANSPORT IS LOSING

There is a harsh reality and that is the road transport industry is facing tougher resistance to obtaining productivity, safety, and even necessary infrastructure investment gains.

This problem is not just limited to Western Australia - it is a national problem.

Fundamentally, the road transport industry needs to re-think how it strategically positions itself and the value it provides.

Examples of How We Are Losing

• Apprenticeship Funding: The

Federal Government in its pre-budget releases has announced $1.2 Billion for apprenticeships and traineeships, specifically mentioning manufacturing, construction, arts, and mining sectors as beneficiaries. Yet the road transport industry which is facing a chronic skills shortage (particularly in WA) is not mentioned. Why because road transport is not seen as a trade. Productivity Restricted: Another example is Fremantle Port where the Government has a 20% on rail target. Ok, I will not argue against rail as I believe both road and rail are needed to make Fremantle port productive. But what I will argue is that despite road transport carrying 80% of the freight, it is prevented from introducing road productivity measures as that is seen as undermining rail. That policy principal is spread across multiple routes in WA. Infrastructure Investment: The Arts lobby very successfully won the requirement that up to one percent of the construction budget for new public works (sic includes roads) over $2 million, to be spent on artwork. Yet, we as an industry can’t get any percentage mandated for rest areas. Paying For Roads: There are federal agencies actively working on how the road transport industry pays more for roads. Other transport modes and anti-road transport groups have been very successful in arguing that the road transport industry is basically subsidised and is not paying enough for roads both in terms of damage and another thing called externalities.

“Moreover, the cost of road externalities (such as noise, air pollution, congestion, and accidents, etc) is in the order of seven times the cost of rail externalities for interstate nonbulk freight transport.” (source: Australian Parliamentary Library – Cost Recovery in Rail and Road Transport.)

We Need to Learn from the Rail Industry Lobby

The rail industry has quite bluntly out thought, out positioned, out marketed and out lobbied the road transport industry right across Australia.

Rail is now the darling of Governments, Academics, and even the Community. Public funds are flowing into rail infrastructure investments, cheered on by

highly vocal advocates in the community.

Note, rail has a vital role in the movement of freight and is critical to a globally competitive supply chain system in Australia.

But so, does the road transport industry.

Rather than criticise the rail industry we need to learn from them. They very successfully repositioned themselves from a dying mode to the road saving, congestion-busting low emission alternative to road transport.

Re-Positioning Road Transport Industry

To start winning, Road Transport must move the public and government focus away from trucks on the road to how we are for instance creating jobs. To kick it off here are some examples:

Road Transport Can Save

Manufacturing Jobs: WA is at serious risk of losing several thousand manufacturing jobs to China as the ability of the road transport industry to efficiently transport manufactured output to inland mines right across

WA is being undermined by a lack of protection and investment in the high wide load corridors.

WA Produce Growers Can Now

Compete Against the East: Due to a trial of a new truck combination on Greenmount Hill, WA farmers and produce growers are now able to compete in the East Coast markets.

Saving nearly a day in transport and logistics operations this trial has led to WA farmers and producers now supplying over 250 tonnes per day more of produce and meat to the East. That’s jobs for WA.

There are multiple other examples, but you notice that not once did the argument focus just on the trucks. It focused on the value we provide and the jobs we create and in doing that we demonstrated our strategic value.

Why It Matters

When Governments see road transport as a real jobs generator or enabler of economic growth in the broader economy then it is easier to win the arguments for things like rest area investment, industry safety, access improvements, better funding for training, etc.

And it’s the Rail Industry that has taught us that lesson. Change the way you position your value and the public investment will flow.

PS: for those of you not as old as me, 30 or 40 years ago, rail was being shut down everywhere, as it was seen everywhere as a totally inefficient and a drain on the public purse.

The Work Has Started

The work has started, with Western Roads member groups, such as Port, Cold Chain, Metro Freight, OSOM, DG/ Bulk Fuel, Bulk Haulage, etc developing a strategic plan that identifies their transport segment value.

Their plans will also include their identified needs for training, infrastructure, safety, productivity, etc.

These plans will become the foundation of how we reposition and hence argue the case for our industry.

WESTERN ROADS FEDERATION IS THE UNITED VOICE OF WA TRANSPORT COMPANIES Western Roads Federation has been formed to give a strong unified voice for companies who use WA roads for commercial benefit. Western Roads Federation is a membership driven organisation. If you believe in the industry and what you do, then make sure your company is a member, and get involved. For a membership application form Email cam.dumesny@westernroads.com.au ◆ Phone 08 9365 7799 or 0481 064 371 180 Hay St, East Perth WA 6004